Total cost of Transmission Gully rises to $3.4billion, including $30m for contracting

Press Release – Green Party
National is planning to spend over $30 million just on the contracting process for the $3.4 billion Transmission Gully highway, Green Party transport spokesperson Julie Anne Genter said yesterday.

Answers to Parliamentary Written Questions received from the Minister of Transport show that the Government has spent $33.7 million on the Transmission Gully project so far and is planning to spend a further $30.7 million just on the contracting process for the recently announced Public-Private Partnership to build the project.

Last week, New Zealand Transport Agency CEO Geoff Dangerfield conceded to the Transport and Industrial Relations Committee that the PPP would treble the cost of the project to $3.4 billion.

“Taxpayers will be stunned to learn that National is spending $30 million just to sign the contract on Transmission Gully before a sod is even turned,” said Ms Genter.

“Public-Private Partnerships are supposedly about getting value for money but, once again, we see they are in fact cash cows for financiers and lawyers, while taxpayers foot the bill.

“The $30 million for contracting the PPP is just the tip of the iceberg. All up, Transmission Gully is expected to cost $3.4 billion for a project that is expected to deliver only $360-$500 million worth of benefits.

“If National persists with wasting taxpayers’ money on the uneconomic Transmission Gully project it will mean vital projects, such as the City Rail Link that is the only way to keep Auckland moving, won’t get built.

“Do we want to throw away a fortune on Transmission Gully, or should we invest that money in sustainable, vital projects such as the City Rail Link?” said Ms Genter.

Additional information:

Written question 00891 (2013) Published – Transport

MP: Julie Anne Genter
Question: How much has the New Zealand Transport Agency spent to date on the Transmission Gully project, including but not limited to all business cases, planning, investigation and design, and other work?

Minister: Hon Gerry Brownlee
Answer Text: I am advised that the total sum expended over the period 1 July 2006 to 31 January 2013 is $33.7 million. The cost is that associated with both project development (known as scheme assessment) and gaining regulatory consent under section 149R(1) of the Resource Management Act 1991.

Written question 00896 (2013) Published – Transport – Normal Reply

MP: Julie Anne Genter
Question: What will be the total expenditure forecast on the contracting process for the Transmission Gully Public-Private Partnership by the New Zealand Transport Agency and any other government agencies for which he is responsible?

Minister: Hon Gerry Brownlee
Answer Text: $30.7 million.

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2 comments:

  1. Maximus, 28. February 2013, 22:31

    Hold on – wait up there just one second. $3.4 billion? The last time we heard the price it was going to be going up from $900 million to just over a billion? And now they’re saying it is $3.4 BILLION? Why isn’t this huge news? The city was going to be looking for $600 million as its share, as central Govt was only going to stump up with $400 million originally.
    Eye of the Fish wrote a blog about it years back – but a rise of over 300% before it has even started? I said back then that this project would never fly – this makes it even more unlikely!

     
  2. jc, 1. March 2013, 9:02

    Maximus – it’s not huge news because it’s not accurate. If you look into the figures the greens are comparing apples with oranges.

     

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