Nats To Borrow For Transport Investment
August 7th, 2008
National has signalled it will spend up large on transport infrastructure if it wins the treasury benches in October in order to boost economic growth but it will borrow to help pay the bill which may be in the form of infrastructure bonds. Party leader, John Key, indicated borrowing will rise two percentage points to cover the spend up but maintains even at the higher level of about 22% of GDP, it will still be well below most other OECD countries.
Private Sector Investment. National also sees a greater role for the private sector in funding land transport projects than has been the case under Labour which has largely steered clear of public private partnerships (PPPs). However, Key says the party is comfortable with more private sector involvement in infrastructure provision. National will also introduce a new category of highway called “Roads of National Significance,” such as State Highway 1, which will get priority treatment.
Planning Process Streamlined. In other major announcements relating to transport, Key says planning laws will be altered to speed important projects. The Resource Management Act will be amended to remove the Govt’s right of veto and reduce frivolous objections, and projects of national importance will automatically go to Govt-appointed panels for a decision within nine months. National will also appoint an Infrastructure Minister responsible for setting priorities for Central and Local Govt investment in roads and public transport over a 20-year plan.
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