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Green light to get Wellington moving but Government cash not confirmed

Author
Georgina Campbell, NZ Herald,
Publish Date
Fri, 30 Jun 2023, 9:21am

Green light to get Wellington moving but Government cash not confirmed

Author
Georgina Campbell, NZ Herald,
Publish Date
Fri, 30 Jun 2023, 9:21am

There will not be enough money in the National Land Transport Fund (NLTF) to pay for Let鈥檚 Get Wellington Moving鈥檚 (LGWM) big projects like a second Mt Victoria tunnel and mass rapid transit, it has been confirmed.

It comes as Wellington City Councillors yesterday voted to push ahead with some of the $7.4b transport plan鈥檚 smaller projects like removing cars from the Golden Mile.

New Transport Minister David Parker said his predecessor Michael Wood was advised of the funding issue earlier this year.

鈥淥n 16 February 2023, the former Minister of Transport, Hon Michael Wood, received a letter from the Board Chair of Waka Kotahi NZ Transport Agency indicating that the forecast future NLTF funding is insufficient for implementation of the Transformational Programme of LGWM,鈥 Parker said.

鈥淔unding for future phases of work beyond the current NLTP period (2021-24) is still to be confirmed and will be subject to prioritisation and funding availability.鈥

It was initially expected LGWM could be paid for from the fund, but costs have since increased and the fund has come under 鈥渟ignificant鈥 pressure.

In December last year, Treasury officials said 鈥渋t is possible鈥 the Government will be asked to top up LGWM. By May this year, the wording had changed to 鈥渋t is likely鈥 this would be required.

The nature of the Waka Kotahi letter was revealed in response to a written parliamentary question by National鈥檚 transport spokesman Simeon Brown.

Parker鈥檚 office declined to comment further on LGWM specifically.

A spokesperson for his office said the Ministry of Transport has been commissioned to develop a national approach to funding and financing rapid transit given the pressure on the NLTF, large upfront capital costs, and the current ad-hoc approach to funding.

鈥淭he Ministry is currently developing potential funding options for Cabinet鈥檚 consideration. Officials are looking at the appropriate split of costs between central government, local government and other groups that benefit from these projects.

鈥淭he Ministry briefed the previous Minister of Transport on progress on this work, and options will continue to be developed.鈥

Brown said it was now abundantly clear LGWM has lost its way.

鈥淲hile a majority of Councillors might still have confidence in LGWM, it has simply become an incredibly expensive talk fest which has not and cannot deliver for Wellington.

鈥淚t has become a joke around the country that the only project delivered by LGWM is an overpriced pedestrian crossing. National has a track record of delivering major transport projects and will do so again if elected in October.鈥

Yesterday Wellington City Councillors voted down a bid to declare no confidence in the transport plan and they did not support withdrawing the council鈥檚 funding agreement either.

Parker fronted a select committee meeting that same morning where he was asked by National鈥檚 infrastructure spokesman Chris Bishop about 鈥渢he big vote鈥 and whether he had confidence in where LGWM was heading.

Parker said he did have confidence.

鈥淎lso to respect local democracy, they鈥檝e got a contentious vote ahead of them but it鈥檚 their vote, not mine.鈥

The council has faced fierce opposition to the Golden Mile plan from some businesses, who wrote an open letter to Mayor Tory Whanau earlier this week.

鈥淭his initiative will do nothing to enliven the city centre. After the shocks of recent years we鈥檝e gone quiet,鈥 they wrote.

鈥淭urning our main artery into little more than a bus lane will not bring in people and help us recover. It will do the opposite.鈥

But Whanau said the project to revitalise the Golden Mile is what transformational change looked like.

鈥滻t will create a beautiful and pedestrian-friendly CBD that will attract people, workers, and shoppers. It will make our buses more reliable. It is estimated to deliver hundreds of millions of dollars to benefit our city.鈥

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.

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