Guaranteed transport funding increases efficiency

Press release – for immediate release

21 March 2007

Guaranteed transport funding increases efficiency

The New Zealand Contractors’ Federation supports the Government’s five year $1.5 billion transport funding package that was criticised yesterday by the Green Party.

New Zealand Contractors’ Federation chief executive Richard Michael believes that the funding package announced in last year’s Budget was a significant advance for all New Zealanders.

“This funding means that we are more likely to get a roading infrastructure that will, at the very least, be adequate to achieve the economic growth needed to return to the top half of the OECD.”
Green Party Co-leader Jeanette Fitzsimons yesterday released Cabinet papers and other documents which she believes show that our transport funding system undermines carbon neutrality.

Ms Fitzsimons criticised the amount of the transport package, set at $1.5 billion over five years, as a “virtual blank cheque” providing no incentive for project proponents to adjust tenders to meet budget constraints.

However, Mr Michael believes that without this package, New Zealand would be facing a situation of lower quality roads.

“Certainty of funding is essential for roading projects given the level of resources that need to be committed. The planning, consenting, land purchasing and construction typically takes many years.

The critical shortage of skilled workers in the civil construction industry means that set levels of funding are crucial. Workers do not want to get into an industry which is boom and bust, as has been the case over recent years. They need certainty to commit to the industry and build up our domestic skill base.”

In response to Ms Fitzsimons’ statement that priority needs to be accorded to other forms of transport - including public transport, cycling and walking - Mr Michael says that the Government’s investment in transport infrastructure wholeheartedly supports these goals.

“We need to keep in mind that while roads are essential for private vehicles and commercial activities they are also an integral part of the public transport system.

The Government showed considerable courage and foresight in putting together the roading announcements in the last Budget. It will go along way to ensure that New Zealand has the transport infrastructure needed to keep our economy growing.”

ENDS

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