The National Party wants more private investment and various forms of cost recovery to fund ambitious transport schemes as part of its election policy.
The party accuses Labour of talking big but doing little about transport, in part because of its opposition to utilising private funding sources.
But the National leader Christopher Luxon says there are US$11 trillion in sovereign wealth funds and US$50 trillion in private pension funds which go into investments.
"A lot of those funds want to invest in long-term infrastructure with long-term returns," Luxon says.
"A lot of these people have spoken to us, but New Zealand has one of the most restrictive regimes on Foreign Direct Investment in the OECD."
The scale of National's plans is vast. They include a four-lane highway from Whangarei to Tauranga. Four stages of this project would be done within 10 years, leaving just two more to be completed later. This later section would include a road over the Kaimai ranges.
'World's most expensive road' back on the drawing board
Almost as dramatic is a plan to revive Auckland's East-West Link, once dubbed the world's most expensive road. Controversy raged for years over this now dormant proposal to build a four-lane highway connecting State Highway 20 at Onehunga and State Highway 1.
It was forecast to cost $1.25 billion to $1.85 billion by Waka Kotahi, and is now predicted to cost $1.9 billion according to National's analysis.
Another dramatic idea is to build a second tunnel under Mt Victoria in Wellington. National thinks this will cost $2.2 billion.
In arguing for these and other schemes, the party says Labour has been ineffective during six years in office.
"In contrast, National will accelerate investment in modern, world-class transport infrastructure," a supporting document issued by the party says.
"We will use a range of funding sources, including additional government investment, value capture [tax] and cost recovery tools, toll roads where appropriate, and equity financing from entities like the Super Fund, KiwiSaver funds, or global investors."
"This approach will reduce the burden on taxpayers while leveraging the expertise of experienced global infrastructure investors."
Besides toll roads, the funding details under National's plan would include targeted rates on housing built in newly served areas and congestion pricing for cars entering crowded city streets.
The whole range of projects would cost $24 billion.
Auckland & Wellington proposals
Going into more detail, the party wants to ease congestion in Auckland's eastern suburbs by completing the 21 kilometre Mill Road highway between Manukau and Drury.
Public transport in Auckland would also be enhanced, and the party would replace Labour's light rail scheme with a North West Rapid Transit scheme, an airport to Botany busway and an Eastern busway.
The party also favours an additional harbour crossing for Auckland’s Waitematā Harbour, which is the subject of a current investigation by Waka Kotahi.
National says it supports the current timeframe and says it is committed to delivering a second crossing that at a minimum provides for additional road connections.
It says it will seek to reduce the upfront cost of this project to taxpayers by seeking options for private funding.
Besides a second Mt Victoria Tunnel, the Wellington region would get an extra highway across the Hutt Valley to relieve congestion on the Petone foreshore.
Another new road would link Petone and Granada, opening up inaccessible land for 5,000 houses.
Other projects include the Hope Bypass in Tasman, the Woodend Bypass north of Christchurch and the Southern Links project in Hamilton.
The party has also pledged to discontinue the Let’s Get Wellington Moving (LGWM) governance and funding structure. LGWM is a joint venture between Waka Kotahi, Wellington City Council and Wellington Regional Council.
This controversial organisation is due to start work on largely pedestrianising a big chunk of central Wellington. This is the so-called 'Golden Mile' scheme. It is not clear what impact the National Party pledge will have on that $139.4 million plan.
However a group of LGWM sceptics on Wellington Council say the project should be delayed.
"LGWM’s projects should be paused until after the election, in particular the contentious Golden Mile project," says one of them, Councillor Nicola Young.
Under National's plans, roads would also be improved in Queenstown, Otago and elsewhere.
'Costings way out of kilter'
Meanwhile the Labour transport spokesperson David Parker says National's costings are way out of kilter.
Parker says the shortfall in In National's costings for just four projects is at least $2.8 billion.
“Many of National’s estimates appear to be based on old data and fail to take account of real-world escalations in road construction costs," Parker says.
"Between March 2021 and September 2022, roading material costs rose as much as 45%, labour costs went up 7.5%, diesel was up 90% at peak, steel up 57% and bitumen prices rose by 104%.”
96 Comments
National may well have done its sums wrong (personally I don't trust costings from any party for any policy, as no politician can ever achieve anything meaningful on time and on budget) but am I the only one who finds it a "weird flex" - to borrow the modern slang - that David Parker is pointing out just how much the cost of road building has gone up under his government's watch?
I appreciate not all of that is owing to Labour, but seems like a bit of an own goal comment-wise.
Just point out the sums don't seem to add it up and leave it at that.
Road building and maintaining has gone up worldwide - and even more so in NZ. It's energy intensive business - and these massive price rises will continue.
What I find interesting is that Nat'l are back on about enlisting the private sector to pay for these things - and of course that's the PPP model they are talking about, but not labelling it that, because PPPs have failed here and overseas time and time again.
Labour had to pick up the PPP contractual mess created by the previous Nat government on the Transmission Gully highway;
https://www.stuff.co.nz/dominion-post/wellington/127274853/transmission…
https://www.stuff.co.nz/national/politics/300281133/review-finds-transm…
On the infrastructure front I keep thinking we need to start viewing ourselves as a relatively remote island nation of 5 million - and stop building as if we might double our population. No one wants to become Singapore of the South Pacific anyway. And OZ is on our doorstep for the big city type action/activities. We can't compete with that.
So are you suggesting we build a subway? I don't recall the trains being knocked out by wind or rain.
Yes, there are speed restrictions in the middle of summer (mainly the Wairarapa Line which I used to travel on daily), and if there's too much ice/frost build up on the overhead lines then that can effect the Matangi class units. It's certainly not an issue limited to NZ trains.
She even wanted to cancel Puhoi to Warkworth.
Well, that's actually not worked out all that well...
https://www.rnz.co.nz/news/national/494024/puhoi-warkworth-motorway-eng…
Actually it has worked out well Kate.
But you are correct to point out there are issues. I dont know enough to know what should be done but for now the road is fine.
Not so impressed with the cheesecutter rope dividers, going in everywhere. I thought they were not going to be used anymore.
Labours plan to get on top of the bikie gangs perhaps?
I suspect, there are some places/geographies that just don't suit mass transit. The peat swamps just south of Kāpiti were one where the 4-lane highway sunk and was resurfaced I don't know how many times. Not sure what they did eventually to solve the problem. Perhaps they put down piles - must have a look next time I'm up that way.
The Puhoi to Warkworth stretch will be even more 'stretched' if the new AKL landfill goes ahead in Dome Valley. Last time I saw it reported (2019) it was predicted there would be 300 return trips by waste trucks and 150 by light vehicles per day ex-Auckland. I think that's a serious underestimate.
Probably right there.
For my money as much freight as possible would move to rail. The decision making about where the landfill goes should have considered that.
I think passenger rail and light rail are looking increasingly poor decisions. I think National need to wake up about using rail for freight.
Reducing the heavy vehicles gives the roading network an easier life, reduces maintenance, reduces congestion etc and allows the rail network to earn some more $$$
No idea why the Marsden Spur rail hasn't already been started either. Surely that is a no-brainer.
port marsden spur is in the route protection/property purchase phase.
Being delayed and delayed by endless business cases assesements that seems to happen to any non-motorway transport project in this country.
https://en.wikipedia.org/wiki/Marsden_Point_Branch#Northland_Rail_rejuv…
Wouldn't be so bad if they could get a puppy for that newborn to grow up with, or security of tenure for paying rent on time and keeping the place tidy. Nope, the Landlord will be there to watch the baby's first steps so they can enact a no cause eviction.
Kids draw on walls, that'll make the property unappealing to new tenants, a huge emotional toll for Landlords to bear once they've taken off the "It's a business for tax purposes" hat and decided it's their "home", so they can nitpick at their tenants to satisfy their superiority complex.
> They include a four-lane highway from Whangarei to Tauranga. Four stages of this project would be done within 10 years, leaving just two more to be completed later.
What they have announced is a long term visions for a "four-lane highway from Whangarei to Tauranga"
You make it sound like they are announcing most of the route, but the '2 remaining stages' just happen to be most of the route.
It's be like describing puhoi to warkworth as 'four laning to whangeri'
Exactly. Already telling porkies and they not even in government yet
https://www.stuff.co.nz/national/politics/300939736/national-announces-…
No no, they'll steam roll ahead with $24b of roading projects, while cutting the top tax bracket, reinstating interest deductibility for rentals and at the same time solving our budget starved core services and crumbling hospitals. All without adding to our Government debt.
Not even the ballooning annual superannuation bill will be an obstacle, it's the National party we're talking about. They can do it.
No offence Kate, but the 'credibility' they're losing pretty academic when the current government are still using Auckland rapid transit as a make-work scheme for Wellington. It was promised in 2017 to be up and running by 2021. Even allowing for pandemic drama, it's still massively late, and is now massively more expensive to boot.
What I'm saying is building your moral high ground on sand is all well and good, but it doesn't actually do anything to help with Auckland congestion/quality of life or emissions if we're not prepared to ask hard questions about everyone's policies. I'll take misguided infra that actually gets built over fantasy projects that get wheeled every three years as an attack platform.
How is literally nothing going to improve emissions, congestion or any of the other stuff we've been seeing worsen over the last six years since we were sold this as an idea?
I'm firmly, firmly pro Light Rail - but that's because I believe in the use of it as a place-changing transit network, not because I'm blindly committed to the party that's been stuffing it up for six years now with nothing to show for it. How long should the people of West Auckland accept being jerked around like this?
"I'll take misguided infra that actually gets built over fantasy projects"
Well that is a double-stupid position to take because you still do not get a solution and you've spunked your limited funds away. Thank god people like you are not in charge. Oh hang on, if Luxon and Simeon win then yes they will be.
Come on genius, tell me Light Rail that never gets built is better than a busway that actually does?
You can keep acting like having people who want things to actually get built is some sort of affront to God, but some of us are sick of our lives being impacted by incompetence and endless-feet-dragging and want things to actually change at some point. You may be so comfortable that you don't actually have to care but the rest of us live in the real world and are not so lucky.
They had their chance. They failed. They spent their time on other stuff because it was more important than them. You got played. We all did. Some of us just aren't so wrapped up in ego that we're ready to admit it and try and get stuff to actually happen.
Private investors expect higher returns than government debt costs (otherwise they'd just buy bonds).
Whether or not building these roads is the right thing to do (I don't think it is), the private approach simply means New Zealanders will pay more for this infra.
Stupid stupid policy.
https://i.stuff.co.nz/national/politics/300939736/national-announces-fo…
Quickest U-turn in transport policy history? No four lane motorway between Tauranga and Northland after all.
Goes well with Luxon being the worse National leader in living memory. Anyone who appoints Simeon Brown to Transport is a joke.
TOTALLY ABSURD.
Its meant to be a user pays system but National won’t raise the fuel excise tax.
Private money just means forking out an additional premium for the private operators profit.
Targeted rates are also poor policy. They make the house owner pay, not the road user.
Car reg needs to be 5x higher what it is now, and tolls are great for roading, even privatisation; insentivises to not use your car during peak hours, adds revenue (as the operator will be paying a percentage of the income gained by the toll charge plus ground rent) and most toll roads return to the council after a certain amount of time. It allows governments to use the income generated to pay for upgrades in different areas or ways to build things like a train network.
What's wrong with it. It adds value. You're the beneficiary of someone spending billions of dollars right outside your front door. Hell there's provisions for something similar when it comes to a change of zoning in our tax act. How is this any different?
Unless your argument is we should just never build anything because someone might be inconvenienced at some point at some stage?
People around the world cope with tram lines operating outside their homes. Plenty of cities make light rail work. Some use value uplift taxes to help cover the operating costs. I don't get why NZ has to be so different and so averse to doing things in a way that is proven to work almost everywhere else in the world.
Hell there's provisions for something similar when it comes to a change of zoning in our tax act.
Is there? What provision (a link or something similar) would be useful.
The thing about value uplift (should it be chosen as a planning/rating/taxation method) is that there is no corresponding value downgrade (i.e. planning/rating/taxation relief) for imposition and/or negative value change arising from a new development, or land-use plan change.
In planning terms this is referred to as regulatory takings (when disadvantaged by a planning decision) and regulatory gains (when benefiting from a planning decision). It was the rule criteria (set out in the below article) that I didn't like;
https://www.nzherald.co.nz/nz/aucklands-working-class-could-cop-1000-li…
Close proximity (i.e., walking distance - out of sight line, out of noise range) is a regulatory gain - the transit development bordering your property (i.e., immediately adjacent) is more of a regulatory taking.
Additionally, lower commuter traffic congestion on SH1 benefits all those not intending to use public transport. So, hitting just those folks within walking distance of the intended line with an extra $1,000 in rates (around a 20/25% increase) is to my mind, not an equitable rule.
What I'm saying is that more thought needs to go into rules associated with both regulatory gains and regulatory takings under the RMA.
Hi Kate: the relevant section is CB14. Not seen it applied often but it does show there is some thought given to the change in the character/potential for land development from an Income Tax perspective.
There's a key difference with the externalities of a motorway corridor, which is the amenity you gain by living next to a motorway is a far harder sell than the amenity of living on a proper rapid transit route. Take a look at Gold Coast light rail. It's hard to argue that's not an asset in a completely different way to a multi-lane road - arguably it's going to unpick a lot of the noise and air quality impacts of the current road space once completed. I'm not sure how you could compare the two.
Plus it's also not like having a loud train over the back fence, where the dead zone required around it becomes an overgrown mess with with tagging on the fencelines. We're talking in-street systems like you see in Melbourne or other parts of the world. Access to those kind of systems is a selling point, not a negative. And if it means you can upzone a lot of those central areas for much more intensive development, then frankly everybody wins.
As for Labour's $1K per household rinse: If they stop with the fantasy of hugely expensive tunneled light rail, they may find they can do away with that altogether. Again, this comes from a desire to do things a very special NZ way because what works everywhere else in the world supposedly won't work here. I can understand Aucklanders not getting excited about the potential Light Rail has for Auckland because what we need is simple and effective in an urban space, not the monstrosity it has blown out to be.
Wonder when National will realise that there is this thing called climate change?
That National also intends cutting road safety funding, public transport funding and the Marsden Point rail link to pay for these climate change denial, negative benefit cost ratio roads merely confirms that complete contempt National has for people over corporate welfare.
What happens is, you build a nice big wide 4 lane section of motorway so traffic moves freely and then everyone claims the motorway is a success because people aren't idling (wasting fuel), while ignoring the bottleneck of idling cars has just moved 10kms down the road.
Have everyone driving at 100 or even 110kmh, and claim it's the most fuel efficient speed (to justify their lead footed egos) even though the sweet spot is actually 80kmh.
Induced demand explainer
Wow you obviously were not around when the first Pentium came out, still use a couple of computers with them in for basic specialised tasks and man are they slow. Best displayed when you get one to do a large Windows update at the same time as your newest PC does the same update.
If you want better roads, don't vote for national. They cut maintenance spending. The lack of resealing during their last decade in power is becoming all to obvious. Labour have restored the highway maintenance budget, but it takes a long time to catch up on a decade of neglect.
and the reason is national took the money out of the Maintenace budget to pay for new roads, typical kick the can down the road stuff and blame the next guy, and no doubt they will repeat the same process.
if they are going to build new roads they need to be user pays and tolled so we pay as we go
Funding and transport – dashboard and open data | Waka Kotahi NZ Transport Agency (nzta.govt.nz)
the figures they have quoted for the east west link are below the figures they used in 2017 how? have they found a cheaper way of building what is already going to be one of the most expensive price per Km of road anywhere in the world
The EWL is estimated to cost $327m per-kilometre.
Still waiting for Nats Northland bridges?
https://www.shutterstock.com/image-photo/skeleton-on-bench-park-hallowe…
To fix roads/infrastructure, you need to start by overhauling the framework they are built within, remove red tape, and overbaring compliance Then you need you find contractors who will work 24/7.
Privatization?? Sounds like an opportunity to sell ourselves to the Chinese like the rest of the South Pacific. Good move.
The roads are predictable. The rapid transit infra is a nice and unexpected twist. Overall it's more realistic and I'm prepared to give it a go, given the alternative is three more years of make-work schemes for policy wonks and analysts with no infrastructure ever getting built in Auckland.
Plus the Eastern line has been closed, so the trains are limited, KiwiRail probably haven't been chasing containers.
A smaller footprint container terminal could load all containers directly onto rail shuttles, to Wiri. Then make it compulsory, though the scale should make rail more economic anyway.
This is great and we do need an improved road network. The road to Whangarei is turning into a goat track.
However any investment in roads NEEDS to include investment in rail. They should be paired together in any transport plans otherwise all we end up with is more people using cars and more congestion.
How bloody hard can it be to have a decent train service running between Whangarei, Auckland, Hamilton, and Tauranga?!!
It's the Wellington plan that worries me the most. What does this 4 lane highway achieve. It's a dead end, and all the suburbs combined are probably the size of one Auckland one. The only reason for non residents to go there is the airport, and why drive to the airport, to pay a fortune in parking.
Most houses have limited parking, and the local roads are narrow and hilly.
Best option is to have transport hubs, fed by aerial cable cars to hilly suburbs.
Hmm. You may not be aware of the local issues here. Wellington airport route currently forces everyone through the CBD. It's also the only major airport for anyone south of Palmerston North.
Motorway to the airport would be a game changer both for accessibility (important to have good infrastructure connections to key assets) and for reducing congestion in CBD traffic massively. Arguably this could then enable more bus and bike lanes more smoothly in the CBD...
Thanks.My point is its not a huge number of people going to the airport, they then have to provide parking for them. yes , some would come from the lower North Island , but again , not huge numbers.
The terrain just doesn't support this kind of road , on both sides of Mt Vic.
As someone who lives in Wellington and flies to Auckland, Chch, Melbourne and Qtown fairly often... I love this idea lol. It's frustrating not having direct airport access. The one bit of traffic from Auckland I missed was driving on SH20 from Kingsland to the Airport. So clean. So smooth. So accessible. I'm now in geographic terms much closer to the airport but it's longer, more frustrating drive. It shouldn't be routed through the CBD. That sucks.
This will help unlock growth in the region, and future proof it, despite the ambitions to throttle it as much as possible by the members of WCC and WRC.
Car parks aren't an issue, just build bigger carparking buildings.
"
“Many of National’s estimates appear to be based on old data and fail to take account of real-world escalations in road construction costs," Parker says.
"Between March 2021 and September 2022, roading material costs rose as much as 45%, labour costs went up 7.5%, diesel was up 90% at peak, steel up 57% and bitumen prices rose by 104%.”"
Cynically I think the Nats released this policy using old data on purpose, knowing that the response from Labour would be to set out just how fast the rate of increase in costs has been over this 1.5 year period. You're costings suck! Our policies have increased bitumen prices by over 100% over this period you fools! lols
National acknowledging that we need more roads so the service workers who have jobs in the cities but can't afford to live there, can still somehow get to work. Good luck getting home with enough time to make and look after all those babies that Luxon wants you to have to pay for it all.
Ah yes, and all that light rail Labour is definitely going to get around to building annnnnny day now is going to reduce congestion at some point. Assuming they're actually going to build it. Which they aren't.
I'll take this National plan with a credible plan for a busway in West Auckland over the airy fairy Light Rail scheme that could happen at some stage, but won't, and while the congestion gets worse and the region just gets ignored.
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