As I noted in yesterday’s blog post, there are some significant differences between the transport policies and priorities of central government and those of the new Super City – particularly those of new Super City mayor Len Brown. Some of these differences are so fundamental – in terms of whether the bulk of transport spending goes on motorways or railway lines – that I simply don’t think there’s a particularly easy “middle ground” to be found between the two positions. So there will be a very interesting power struggle between Auckland’s local government and central government when it comes to setting these priorities.

Promisingly, it seems as though the government is coming to the realisation that simply saying “go away and pay for those rail projects yourself” probably isn’t going to cut it – particularly in terms of the government’s popularity with a city that has unequivocally said “we want rail improvements!” Here are some extracts from an NZ Herald article entitled “Govt will work with council on Auckland’s transport“:

The Government will work in partnership with the new Auckland council to improve the city’s transport systems, Prime Minister John Key says.

He said today the Government shared Mayor Len Brown’s vision of getting Auckland moving and it was a government priority as well.

“The Government will work in partnership with the new Auckland City Council on what comes next, and contribute its fair share to the continuing goal of improving transport,” Mr Key said at his post-cabinet press conference.

“The next step for the new mayor is to meet his council and discuss priorities and work out how much ratepayers are prepared to contribute to accelerating new projects.”

Mr Key, who expects to meet Mr Brown on Thursday, said the Government already had a $5 billion investment programme for Auckland’s transport systems.

“I believe this investment will make it much easier to get around Auckland, but there’s always more to do,” he said.

I hope he’s not counting the $1.5 billion that is proposed to be wasted on the Puhoi-Wellsford motorway in that $5 billion. That’s unlikely to do much good for Auckland’s economy.

Another article in today’s NZ Herald also points towards the government recognising that they can’t just ignore rail projects beyond Project DART (mostly funded by the previous government) and electrification (which Auckland might up end paying for in the long run anyway). Some further extracts:

Len Brown wasted no time yesterday in telling the Government that the huge mandate he has as mayor-elect of the Super City will be focused on three rail projects in Auckland…

…After his big win over John Banks on Saturday, Mr Brown said yesterday that his total focus was on uniting Auckland and advancing the three rail projects with “real pace”.

Mr Brown wants to build a $1.5 billion inner-city rail loop within five to seven years, a rail link to the airport within 10 years and a line to the North Shore via a new harbour crossing within 15 years.

Mr Key said politicians had to have a vision and a dream to get elected, but there was also the issue of practicality.

The Government did not have an open chequebook.

It had spent about $1.5 billion on double-tracking, electrification and new rolling stock for rail in Auckland, “but what happens beyond there is something we will have to sit down and have a discussion about”.

“But we need to get Auckland moving more quickly because we know from all the research that if your major city is powering ahead and doing well it lifts your national economic growth exponentially.”

It really does feel as though we now have our best opportunity in 35 years to really improve and develop a proper rail system for Auckland. The money is there, we just need to redirect spending away from motorway projects that don’t stack up.

I just hope that we really take advantage of this situation and it doesn’t end up being squandered, like has happened so many times in the past.  Making sure that we finally do build Auckland a world class rail system, and a top class public transport system in general, will depend on a lot of things going right. But I’m pretty confident that if we ever had the chance for it to work – that chance is now.

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36 comments

  1. Is it just me or has a new wave of optimism just swept over PT advocates, its amazing what a few days can do 😀

    I’m quite impressed that Brown has already started hammering transport and the need for rail, I thought it would be more back room dealing but coming out so strongly on it since Saturday has probably caught a few people off guard. Hopefully he keeps up the pressure (and he may have to supply a few dead rats for some ministers to swallow)

    1. You’re right Matt, certainly life is looking up for PT advocates when our new Mayor keeps hammering on about this being one of his primary goals.

  2. Clearly there is momentum in this city for large scale PT projects. It’s now around a year until the next general election and PT in Auckland must be a clear election issue. To suggest that there is no taxpayer money available for rail expansion in Auckland is really a matter of priorities as we all know that there seems to be good funding for those projects deemed important.

    So questions need to be asked of those doing the deeming. My local MP Nikki Kaye seems to be a nice enough person but her webpage which has a kind of blog seems to not even acknowledge the events of the weekend. Pressure needs to be brought on her and the other MPs of the region so they are fully aware of the wishes of the region and make it clear what they need to do to stay in their seats.

    Unfortunately Steven Joyce is a list MP and unlikely to lose his seat anytime soon.

  3. Imagine if Banks had won, there’s no way John Key would have had to be confronting rail at the opening of Eden Park if Banks had been giving the opening speech.

  4. OK, having checked the ‘vision’ maps for rail in Auckland, two questions:

    * Where does the Avondale-Southdown link now rate as a priority?
    * Should the maps also include LRT along the Dominion Rd corridor?

  5. I would in Auckland. Light rail would certainly be a notch above a simple QTN bus route, and with the right design it could achieve RTN speeds even on the street.

    1. In the print edition there was a huge map that accompanied it as well. The story on the front page isn’t great saying Key and Joyce are now going to shut the cheque book. In it though Brown does say a discussion will need to be had over the priority of Puhoi to Wellsford.

  6. James B – It was a good article, maybe the herald is starting to wake up to what the people want, hopefully we will see more articles poping in the herald.

  7. What good articles? Like the front page one, where they made a bad photographic pun declaring all of Brown’s rail plans as mere dreams?

    1. These debates need to be had. I think the article on the front page is good. It shows the govt is out of step with Auckland’s transport priorities, it questions the need for the holiday highway and really puts the pressure on govt to start talking nicer about rail.

  8. The obsolete funding model of 100% central Government funding for motorways really should be consigned to the history books now. Funding for transport projects should be determined by a business case, and motorway projects should not be exempt from this.

  9. I think we do have a good chance to get at least the CBD loop and airport rail to a point where they are designated, designed, approved – just short of funding and we can put massive pressure on Joyce et al…

  10. Its all about pressuring Joyce et al to unlock NZTAs funding and to have a level playing field for cost benefit. But if Key is good to his word: govt. to contribute its ‘fair share’ then that all we want.

    AK council fund the stations; taxpayer the route? That sound good?

    But immediately route designation… especially out east…. Admin who now needs to see your argument for the GI to Highland Park route?

    1. Good grief, do I see several commenters actually realising that rail improvements benefit road users too?

      Never thought I’d see the day.

  11. Well the issue is that the money is there if Wellington gives us the tax we pay back to spend on the projects we want, local planning is generally better than central planning when it comes to government, people know what they want and need better than the government ever could…

  12. First time I read Key’s comments I was very disappointed, but reading them again 5mins ago, I’m not sure its as bad as it first seems. I think (hope?) he was just getting a word in upfront that central government wouldn’t be fully funding further rail spending (unlike roads!), not that they were putting away the chequebook altogether. And Brown almost seemed to concur when he talked of central funding in conjunction with infrastructure bonds and PPP’s.

    What is most encouraging is the comments from Christine Fletcher, actually reported in The Dom today:
    http://www.stuff.co.nz/dominion-post/news/4220677/Browns-rail-loop-strikes-resistance

  13. There have been reports Key has indicated the government would fund half of the CBD tunnel if Auckland raised the other half.

    1. That would be fair. I’m sure we could find $750 million out of a combination of rates, bonds, development levies and additional private funding.

  14. Just did my bit on the nzherald website..and fair play to NZH for finally
    giving some coverage to this issue..I guess Brown making noise about it forces them too anyway. Good to see many also share my views aout aucklands rail future..just a few “cars are more efficient” comments LOL.

  15. Half would be a great start to to readrressing the road/rail funding allocation in Auckland to this point.

    It might be small steps from here on in, but its definitely steps in the right direction.

    What a dramatic turn of events if Brown gets his wish of construction starting on the tunnel before his first term ends. It will be tight with the red-tape taking 2yrs. Beats the “completion not before 2025” rumours a month or so back

  16. Bonds, maybe; but not PPPs, please. We’ve no experience in New Zealand (yet?) of this particularly pernicious form of funding particularly in terms of public sector supervision and even if we did in all likelihood we’d be taken to the cleaners just as the UK Treasury has been in its PPP contracts for hospitals, schools and the London Underground line upgrade projects. Basically it’s just loading unnecessary debt on our kids and, of course, any risk is socialised.

  17. To me PPP’s should be treated no differently to taking on more debt. The only advantage is that they dont show up on the balance sheet, so the govt/council can say they arent taking on more debt, when that is actually a sham.

    The Global Financial Crisis has seriously dented the viability of this model everywhere as the cheap money and creative financing has dried up and many of the companies involved have gone bust.
    I know in Australia projects that were going to be done as PPP’s have been canned or instead proceeded along traditional contracting procedures as there were no bidders because of lack of financing.
    Where PPP’s do have some advantage is toll roads or other areas where the PPP operator can collect user charges.
    This is how Brisbane got their airport line without any state funding or taking on debt.
    However this will not be the case with the CBD tunnel as it will not cost commuters any more to use the CBD loop tunnel.
    Also as commuter suggested this model requires a very high degree of supervision and as we dont have any experience we are liable to be taken to the cleaners.

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