Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Put the brakes on multi-billion dollar Transmission Gully

21 February 2013

Govt should put the brakes on multi-billion dollar Transmission Gully white elephant

The Government should ditch its Public-Private Partnership (PPP) plans for Transmission Gully following embarrassing testimony today by the head of the New Zealand Transport Agency (NZTA) that revealed a PPP will cost taxpayer three times more than if the motorway was built by the Government itself.

NZTA head Geoff Dangerfield conceded at the Transport and Industrial Relation Select Committee that it would cost the Government $1 billion to build the Transmission Gully motorway, but that service payments under the preferred PPP approach will be triple that over a twenty five year timeframe.

“The Government is locking tax payers into long-term payments for an expensive and unnecessary motorway that will be very profitable for the private consortium building it,” said Green Party transport spokesperson Julie Anne Genter.

"Public-Private Partnerships are just an expensive form of borrowing, and borrowing to build an uneconomic highway is an irresponsible use of taxpayer money.

“The announcement today of a Brisbane motorway PPP going into receivership demonstrates the poor economic returns of building new highways.

“The Government’s proposed PPP model moves all the demand risk to taxpayers. Taxpayers will fund guaranteed payments to a private consortium for decades.

“It is unconscionable that the NZTA has adopted a more expensive funding model. This runs completely counter to normal standards of fiscal decision making expected of Government agencies.

“NZTA is putting the economic interests of the private consortium ahead of the public interest.

"Leaked NZTA documents from last year show that National’s extravagant and uneconomic highway projects have created a huge hole in the transport budget. The documents warned that the only way to fill the hole was to delay the projects, increase petrol tax, or borrow.

“Rather than waste billions on an uneconomic highway and burden taxpayers with 25 years of debt repayments, the National Government needs to take a smart, green approach to transport spending.

"The best option is to upgrade the existing route and invest in other alternatives to take commuter traffic off the road.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Another Leader Exiting: Statement From Peter Dunne

I have concluded, based on recent polling, and other soundings I have been taking over the last few weeks, that, the volatility and uncertainty notwithstanding, there is now a mood amongst Ōhāriu voters for a change of MP, which is unlikely to alter...

“I have therefore decided that it is time for me to stand aside, so the people of Ōhāriu can elect a new electorate MP. More>>

 

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election