Phil Twyford
Transport Spokesperson

8 February 2012

National’s motorway projects poor quality spending

Billions of dollars allocated to state highways is now confirmed as ‘poor quality spending’, says Labour’s Transport spokesperson Phil Twyford.

“National loves to tell everyone to tighten their belts, but for some reason their pet motorway projects are exempt,” Phil Twyford said. “In the House today Transport Minister Gerry Brownlee was clearly unconcerned by the poor quality of investment.

“The taxpayer is getting a bum deal here. The briefing to the incoming Minister from Transport officials reveals that half the spending in 2009/10 had a low cost-benefit ratio. In other words, the Government’s own figures show that these projects are poor value for money.”

In 2007-8, before National came to power, more than 75 per cent of state highway expenditure was on projects classified as high cost-benefit ratio, but by 2009-10 less than 10 per cent had a high cost-benefit ratio, Phil Twyford said.

“By hand-picking their so-called Roads of National Significance, regardless of the cost-benefit analysis, National has corrupted the process of setting priorities in transport funding.

“The Puhoi-Wellsford holiday highway was even added to the RONS list before a cost-benefit analysis had been done on it,” Phil Twyford said.

“National has skewed transport spending by pushing its pet motorway projects to the top of the list. In the process they have squeezed funding for local roads, rural roads and public transport.

“Cash-starved rural roads are being torn apart by logging trucks and milk tankers, and National is blocking Auckland’s plan for the City Rail Link which would double the capacity of the city’s rail network. National’s approach is out of whack.

“And as the briefing to the new Minister shows, a fall-off in revenue from the petrol tax and road user charges is going to make it increasingly difficult to pay for its hand-picked motorway projects,” Phil Twyford said.

http://www.transport.govt.nz/about/functions/Documents/BIM2011_Policy_challenges_upcoming_decisions_FINAL.pdf Fig. 190. p 22.

ENDS

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