Nathan Guy National Party MP

10 October 2007

Labour sounds death knell for Transmission Gully

Transport Minister Annette King appears to have rammed the final nail in the coffin for Transmission Gully, says National MP Nathan Guy.

"She has finally fessed up in Parliament that Labour's confused attitude towards public-private partnerships for transport will prevent private funding being used for the project.

"That means the only way Labour will be able to fund Transmission Gully is by hiking the regional petrol tax, which is likely to see Wellingtonians hit up for more than 10 cents extra a litre.

"Finance Minister Michael Cullen has already confirmed that the billion dollar project faces a shortfall of around $400 million.

"We now know that Labour had no plan all along on how to fund this shortfall.

"Annette King's confirmation that Transmission Gully is under threat will no doubt annoy and embarrass some of her colleagues who have publicly embraced the use of PPPs in the transport sector.

"Trevor Mallard proudly proclaimed to the NZ Council for Infrastructure in November last year that 'the Government is open-minded about the use of public-private partnerships'.

"The Minister will also need to engage in some fast talking with her colleague Otaki MP Darren Hughes, who supported a Government bill which enabled public-private partnerships in the transport sector.

"He effusively endorsed the legislation, saying 'I welcome the public-private partnerships that are part of the bill'.

"Annette King's confirmation that Transmission Gully has been relegated to pipe-dream status for Wellington signals a very bleak future for transport projects up and down the country."

ENDS

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