commitment to solving Auckland's long term transport funding challenge is a big
step forward," says Stephen Selwood CEO of Infrastructure New Zealand.
"The region is
facing an annual deficit of around half a billion dollars to fund the agreed
programme. Labour will introduce a 10 cents per litre regional fuel tax, which
will levy around $160 million per annum, and deploy targeted rates to fund the
targeted rates in particular could be transformational in Auckland. Over the
past few years we've seen major public transport investments materialise as
property value increases, but had limited scope to capture that value and use it
to fund the programme.
"A key concern for
business has for many years been the lack of certainty for transport investment
in Auckland. The projects are there on paper, but without funding certainty it
is difficult for everyone from property investors to transport suppliers to
gear up for opportunities ahead.
long as funding is provided on a case by case basis, the investment programme
is less a forward work plan for industry than a political football which
increases investment risk.
"Risks are priced
into projects and we all pay more for roads, rail, homes and buildings.
"We hope that the
vital East-West Link does not become a case study on this issue.
"The project has a
very strong business case, including a benefit cost ratio approaching 2.0, but
with its benefits accruing to freight and industry it has struggled to receive
forward work plan and providing a stable funding regime to deliver that
programme when required is critical to meeting Auckland's growth needs.
approach provides this certainty, it will be warmly received by everyone,"
For further information and comment contact
Stephen Selwood on 021 791 209