Nats, Labour trade blows over Collins’ $31b transport aim
Auckland-centric policy littered with fiscal holes, Robertson warns
National’s mooted congestioncrushing $31 billion transport election policy has come under fire from Labour, which says the plan is full of fiscal holes.
Although the plan has been welcomed by infrastructure and contracting groups, the Aucklandcentric policy has also been attacked by NZ First leader Winston Peters.
In her first major speech since taking the party’s reins, new National leader Judith Collins said the policy would be “the biggest infrastructure programme in New Zealand’s history”.
More than half of the $31b over 10 years, about $17b, would be spent on projects in the upper North Island, including Auckland, Hamilton, Tauranga and Whangarei.
But the focus of the package is clearly Auckland — a city Collins says is a “collection of disconnected villages”.
The other $14b, which has yet to be allocated to specific projects, will be spent on projects throughout the country.
Collins said the significant spending package would fix Auckland and the upper North Island’s congestion issues and transform the region into an “economic powerhouse”.
National’s plans have been welcomed by Civil Contractors NZ, which said it was good to see such a strong commitment to transport infrastructure.
Infrastructure New Zealand’s chief executive Paul Blair was also optimistic.
“National’s commitment to reforming planning and transport investment is welcome and, if supported by effective and timely delivery, could be transformational for New Zealand.”
But National’s plan comes with a hefty price tag.
National has ruled out any new fuel taxes and also promised that, if in Government, it would repeal the Auckland regional fuel tax.
A National Government would allow the NZ Transport Agency to borrow more money, plus $7b from the Covid-19 response package — which was announced by the current Government,
but close to $20b of it remained unallocated — would be used to fund the work.
The rest will come from future budgets.
Finance Minister Grant Robertson was quick to point out what he has described as “holes” in the National Party plans.
And he is sceptical of National’s commitment to transport projects, given he said the party left the country with “a load of ghost roads” last time it was in power.
Robertson said National’s plan included $6.2b for projects already given the nod under the Land Transport Fund.
He called on National to outline exactly what projects it planned to cut.
Robertson was also critical of National’s stance on Government debt.
National wants to cut New Zealand’s debt to 30 per cent of GDP within 10 years — the Covid-19 recovery will increase debt levels to more than 50 per cent.
But NZTA’s increased debt would not appear on the Government’s balance sheet as it would be ring-fenced within the transport agency.
“National is in a shambles, and that is obvious when it comes to their contradictory position on debt,” Robertson said.
NZ First’s Peters said although it was good that National had “rediscovered railways”, the plans needed to be speeded up.
“Why does National’s airport train line have construction starting at 2030 — a decade from now?
“This project needs to start now, as it will take five to six years to build.”
NZ First has blocked attempts by the Government to start work on light rail to the airport during this term.
Collins said yesterday that the Labour-led Government had still not delivered on its promised light rail project, calling it a “ghost train”.
National’s mooted four-lane expressway would connect Whangarei, Auckland, Hamilton and Tauranga and would tunnel through the Brynderwyn and Kaimai ranges.
Collins said cars would pay a “small toll” to use the tunnel, and commercial vehicles would pay a bit more.
The additional Auckland Harbour crossing would be tolled as well.
“It will be New Zealand’s biggest infrastructure project,” she said,
Collins added that the eight years it would take before work could begin was “ambitious”, given the scale of the project.