Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


PM Says Brown’s Rail Link Will Be “Burden On The Ratepayers"

PM Says Early Start To Mayor Len Brown’s Rail Link Will Be “Quite A Big Burden On The Ratepayers”

In a radio interview this morning the Prime Minister said that an early start to the Auckland City Rail Link would lead to “quite a big burden on the ratepayers”.

In answer to a question in Parliament yesterday Transport Minister Gerry Brownlee said the Government would not fund the project until it was obvious that targets for passenger and population growth were enough to justify the $3 billion cost of the project.

Mr Brownlee said it was unlikely those targets would be met to allow a start before 2020

Mayor Len Brown's proposal to the Prime Minister is that the Auckland Council will fund the entire cost of the City Rail Link from 2016 to 2020 when the Government would repay 50% of that cost.

The Council's 10-year Long Term Plan shows that in the 5 years to 2020 the Council plans to spend a total of $2.4 billion, funded 50/50 by the Government and Council.

The Prime Minister, last year, gave conditional agreement to support the project which was then estimated to cost $2.8 billion.

That cost is now likely to be at least $3.2 billion.

The Mayor and Council have assumed that the Government would fund half of the total cost, although the Government has not committed to that level of funding.

However the Mayor has failed, after three years of effort, to find a funding method for the Council's half-share.

The Mayor is asking the Prime Minister to provide a cast-iron guarantee that the Government will pay half the final total in 2020, and, with that guarantee, the Council would fund the entire project between now and 2020'

With no funding plan in place the Mayor will need to borrow the full cost with the ratepayers being the ultimate guarantors.

Interest on new borrowings would be funded from rates income with the result that rates would rise considerably, which is the burden the Prime Minister referred to this morning.

By increasing its total borrowings to raise this $2.4 billion the Council will reach its prudential borrowing limits, and probably its prudential interest limits.

The Mayors obsession with the Central Rail Link is leading to a very risky financial future where funding for essential basic services will be squeezed to meet the interest costs of the rocketing debt of the city.

This proposal comes from the Mayor and has not been approved by the Council as a whole, and it is now up to councillors to take control of the situation and bring some clear and sane consideration of this dangerous situation.
ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Life And ACC Work Of Sir Owen Woodhouse

With the death of Sir Owen Woodhouse, the founding father of the Accident Compensation Scheme, New Zealand has lost one of the titans of its post-war social policy.

In its original incarnation in the early 1970s, ACC had been a globally innovative “no fault” scheme whereby accident victims surrendered their right to sue those responsible – on the understanding that they would receive compensation at a level that, as Woodhouse famously stated, would be sufficient to enable accident victims to fully participate in social life... More>>

 

Parliament Today:

Bad Transnationals: Rio Tinto Wins 2013 Roger Award

It won the 2011 Roger Award and was runner up in 2012, 2009 and 08. One 2013 nomination said simply and in its entirety: “Blackmailing country”... More>>

ALSO:

Select Committees: Tobacco Plain Packaging Hearings

The Stroke Foundation is today backing the Cancer Society and Smokefree Coalition who are making oral submissions to the Health Select Committee in support of proposed legislation to remove of all branding from tobacco products. More>>

ALSO:

Milk: Oravida Asked For Cabinet Help

New evidence released by New Zealand First today reveals Justice Minister Judith Collins used her position to manipulate the Government to help her husband’s company, Oravida, after the Fonterra botulism scare, says New Zealand First Leader Rt Hon Winston Peters. More>>

ALSO:

With Conditions: Ruataniwha Consents Approved In Draft Decision

The Tukituki Catchment Proposal Board of Inquiry has granted 17 resource consents relating to the $265 million Ruataniwha Water Storage Scheme in a draft decision that would open more of the Hawke’s Bay to irrigation. More>>

ALSO:

Fast Lanes, Campervans: Labour 'Making The Holidays Easier For Kiwi Drivers'

The next Labour Government will make the holidays easier and journeys quicker for Kiwi families driving on the roads, says Labour Leader David Cunliffe. More>>

ALSO:

Gordon Campbell: On Royalty And Its Tourism Spin-Offs

Ultimately the Queen’s longevity has been one of her most significant accomplishments. A transition to Prince Charles while the monarchy was in the pits of public esteem in the mid to late 1990s would have been disastrous for the Royal Firm. Far more congenial representatives have now emerged... More>>

ALSO:

Privacy (Again): ACC Demands Excessive Privacy Waivers

Labour: “This is just another example of ACC under National deliberately acting to deny treatment and compensation... Those who did fill in the form have effectively been victims of yet another ACC privacy breach. This time Judith Collins knew it was happening..." More>>

ALSO:

IPCC: Many Pathways To Substantial Emissions Reductions Available

A new report by the Intergovernmental Panel on Climate Change (IPCC) shows that global emissions of greenhouse gases have risen to unprecedented levels despite a growing number of policies to reduce climate change. Emissions grew more quickly between 2000 and 2010 than in each of the three previous decades. More>>

ALSO:

Bowels: Green Light From Labour For Cancer Screening Programme

Labour Leader David Cunliffe has today committed to a national bowel screening programme, starting with extending the current service to the Southern and Waikato districts. More>>

ALSO:

Dotcom Speaks To Mana AGM: Negotiations With The Internet Party To COntinue

The MANA AGM decided unanimously to continue negotiaitions with the Internet Party. Within a month further negotiations, further consultation with MANA branches and a final decision on whether to proceed with a relationship is expected. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news