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More money coming for “better transport infrastructure?”
Finance minister Bill English said in a statement today:
“We are considering options such as the viability of mixed-ownership model for four energy SOEs that would reduce the amount we would need to borrow to pay for substantial increases in Government assets like schools, faster broadband and better transport infrastructure.”
His comments, following on from the prime minister’s sounding out the public last week on asset sales, came as a savings working group issued its report recommending universal Kiwisaver amongst other things.
It’s good to hear Bill talk of finding more money for transport.
Does Bill mean more motorways to relieve congestion?
But can we make sure we remind Bill what better transport infrastructure means especially for Auckland - more rail please not just more motorways.
5 Comments
Well this is the thing. Selling our assets will probably be negative because of what they do with the the money, our money. Because by selling they are lowering our future income from these blue chip industries. However if the income is invested in industry or infrastructure that performs even better then it could work. So what project could return over the odds for the NZ economy? More motorways? What is the BCR on that CBD rail line again? Oh 3.3 from memory, that’ll do then….
Bill is just blatantly lying here. Money on motorways comes from the transport fund (petrol taxes), nothing to do with how much the govt borrows.
The transport area is overflowing with money, its just being spent on stupid projects.
Transport seems to be the only sector escaping the govts belt tightening and value for money drive. A real shame because it seems to be the worst offender in both counts under Joyces watch.
Luke, unless you argue that the government’s motorway and other transport (much less) spending spree IS currently fully covered by fuel tax*, he’s not lying. He’s just saying he wants to spend even more money on these things than he has, and some of that is to come from flogging off assets.
*(I confess I do not know, but suspect they are adding other tax money sources to the transport spend too - does anyone have figures on our transport spend - INCLUDING maintenance - compared to our fuel tax revenues?)
Luke, the government routinely spends around a billion a year more on roading than it gets in fuel taxes and RUCs.
Note that this has been fairly standard for the last two decades, the recent funding realignment for the Roads of National Significance (11 billion over ten years) is on top of this.
Additionally, about 50% of local government spending on city streets, roads and arterials comes from the ratepayers purse.
I’m not sure what this all ads up to, but I figure it is a shortfall of several billion every year.
http://topdocumentaryfilms.com/oil-smoke-mirrors/