Northland’s plan to give national GDP a $1.2b boost
Investment in a high-quality, four-lane expressway between Auckland and Northland could boost national GDP by $1.2 billion a year by 2050, according to economic modelling commissioned by the Northland Corporate Group.
Lobby group co-chair and Northpower chief executive Andrew McLeod said Te Tai Tokerau increasingly stepped up as a key enabler to New Zealand’s economic growth ambitions, and a high-quality, four-lane expressway was central to realising the region’s full potential.
“Northland’s deep resource base, and location to the North of Auckland, position the region to make a substantive economic contribution, but decades of chronic underinvestment and piecemeal patchwork along SH1 has isolated the region, tarnishing perceptions of our business capabilities and capping that economic contribution,” he said.
“Analysis makes the case for a wholesale upgrade to SH1 between Auckland and Northland. Without that, we’re stuck in a loop of piecemeal upgrades creating bottlenecks ... that (will) be the chokehold on our economic potential.
“Economic modelling reveals that it’s not just the Northland business community that would be impacted by a lack of ambition and follow through. The entire country will pay the price to the tune of roughly $24b in national GDP growth over a 20-year period.”
The lobby group commissioned NZIER to do an economic analysis of the proposed investment, including the results of a 2023 survey of nearly 800 Northland businesses, believed to be the largest business survey ever in the region. The survey revealed that inadequate transport infrastructure was the biggest problem facing Northland businesses.
NCG co-chairperson and Marsden Maritime Holdings Ltd chief executive Rosie Mercer said the results of the survey were unsurprising: “This report shows us the cost of road closures along the Brynderwyn Hills portion of SH1 in 2023 alone cost between $3.3m and $14.6m per day. We’re only four months into 2024 and the Brynderwyns are closed for the second time this year.
“While it’s essential that NZTA get the support they need to complete its remedial work as soon as possible, what Northland businesses really needs is a resilient, four-lane alternative to the Brynderwyns and beyond, extending along the entirety of SH1 between Auckland and Northland.
“The pathway to New Zealand’s prosperity must be interconnectivity between regions. We’ve seen this firsthand in Auckland, Waikato and the Bay of Plenty, where critical road linkages have facilitated economic growth, improved social outcomes and attracted greater residential development. We’re stronger as a nation when our cities and regions are connected.
“We have strong and capable businesses in the North, businesses that punch above their weight and hold deep infrastructure, logistics, and technological expertise. We play an increasingly large role in supporting economic growth to our South. We’re well overdue a reliable and resilient expressway to ensure we can increase that impact.”
The report identifies faster travel speeds, less road closures and diversions, greater resiliency against extreme weather events, and less car accidents as direct benefits of the proposed investment. It is estimated these could deliver $562 million a year to the region.