Print This Article Print This Article

ARC Turns Up Heat On Govt Over Rail Funding

July 24th, 2008

Auckland transport politicians are alarmed the region’s share of almost $1.9bn of rail improvements will be at least five times higher than the local cost of upgrading Wellington’s trains. In addition, the Govt is proposing to raise its $500m half-share of Auckland rail electrification from a new tax on the region’s motorists.

Calculations Show Funding Bias. The Auckland Regional Land Transport Committee will ask the Auckland Regional Council to open discussions with the Govt on funding on what is says is “a more equitable, consistent and nationally standardised” model for rail spending. The move follows a calculation by Regional Councillor, Joel Cayford, showing Auckland is liable for 40% of rail improvements totalling $1.886bn, including electrification. This compares with just 7% for a $515m package of upgrades for Wellington’s rail network.

Auckland Needs Greater. Committee member, Kathleen Ryan, says the funding balance could potentially be far worse if a regional fuel tax is introduced starting mid next year. She claims Auckland’s share will be as high as 68% if the Govt pays its proposed $500m contribution to rail electrification from a regional fuel tax. Ryan says Auckland, with a population of 1.37m, has far greater needs than Wellington with 466,300 people which has had an electric suburban railway network provided by Central Govt funding since the 1940s.


 Copyright © Media Information Ltd
NZ Transport Intelligence Briefing