Asset sales and bonds: are these part of paying for future transport needs?
Press Release – Auckland Chamber of Commerce
The initiative of Auckland Mayor Len Brown to encourage Aucklanders to debate how to pay for Auckland’s future transport infrastructure is timely and welcome, said Auckland Chamber of Commerce head Michael Barnett.
The Mayoral report sets out 12 options for addressing the estimated $10-and-$15 billion funding gap for financing major transport infrastructure that will be needed over the next 10-15 years to keep pace with Auckland’s rapid growth.
“However, if we are to have a rigorous debate that looks at all funding sources without a pre-conception of the most efficient, affordable and fair to all Aucklanders, options such as asset sales – partial or full – and infrastructure bonds should be part of the debate.”
Given that Auckland currently generates around a third of the nation’s growth, and is anticipated that more than 50% of New Zealand’s GDP will come from Auckland in the foreseeable future, it is also critical that central government actively participates in the debate.
“Government has rightly embarked on a rebuild of Christchurch as a priority of our nationhood. One of the best options to generate increased productivity and resulting taxation to help fund the rebuild is by getting the Auckland economy singing. This in turn will require a high performing transport network as a priority.
“Yes, we need a debate on how to fund the first class transport network for Auckland, as much in the interests of lifting Auckland’s economy and lifestyle as generating wealth for the whole of New Zealand.
But we need the debate to be focussed on the transport network that we need now if we are to lift our game, and then design a coherent funding plan to build it with speed and urgency,” said Mr Barnett.
“All funding options – innovative and traditional, the outrageous and the courageous – should be on the table. If we are to be the world’s most liveable city, then we will need to bring to the debate some of the innovative thinking we showed at the Cloud during the Rugby World Cup. We showed the world that ‘we think differently here’.
“This funding paper is not thinking differently. Bringing some fresh thinking to the debate that moves beyond set positions and ideology seems to me a critical need,” suggested Mr Barnett.
Press Release – Employers And Manufacturers Association
The debate over the funding options required to develop Auckland’s transport should cut straight to the chase, says the chief executive of the Employers and Manufacturers Association, Kim Campbell.
“Several of the so called funding options in the Mayor’s paper are simply not going to happen and should be discarded right away,” Mr Campbell said.
“These include more taxes just for Auckland which the council can’t implement anyway. Its simply alarmist and unhelpful to the discussion.
“But it is important for Auckland to have such a process as this so we can all pool our ideas.
“The city needs all the projects identified and the community has to accept the only way they will be built is to agree to fund some extra contribution.
“Business favours a low level toll to apply to the whole of our highway network and for the projects funded to be across all modes and for both public and private transport.
“Important for the debate too is that Aucklanders understand the major transport project priorities for where and when the funding will be invested.
“Without this understanding its difficult to see Auckland willing to invest in developing the new transport assets that are nevertheless urgently needed.
“So we call on the Mayor to state the priorities and timelines for the investment projects envisaged.
“Business already has such a list, strictly in the following priority order:
1. Completing the Waterview project – though underway this needs more urgency – the return on investment is well over $4 for every dollar invested.
2. Developing an eastern transport corridor connecting through to a four lane east/west highway from East Tamaki to Onehunga.
3. The central rail loop provided it is justified by a sound business case.
4. The third harbour crossing – a wide ranging debate is needed as there’s no business case for a tunnel.
“A funding omission is the possible sale of council selling non- core assets. This needs to be added for serious debate as part of the funding options”
Press Release – NZ Council for Infrastructure Development
“The Mayor’s transport funding paper released today outlines a number of options to fund transport investment and gives Aucklanders the opportunity to determine the future of their city. In the end it comes down to a simple choice. Either we employ new tools to fund the level of investment to get Auckland moving, or, we do what we’ve always done – underinvest – and get the same congested, low productivity, low income results”, says CEO of the New Zealand Council for Infrastructure Development, Stephen Selwood.
“The paper highlights a funding shortfall of at least $10 billion. A deficit of this magnitude cannot be funded by tweaking up council rates, petrol taxes and road user charges. It requires acceptance that new approaches are necessary.
“The Mayor is correct in promoting public debate on this critical issue. This is going to be one of the key issues that needs resolution to enable implementation of the Auckland Plan, once it is finalised”, Selwood says.
NZCID submissions and media statements can be found online: www.nzcid.org.nz

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