Will China fund Len’s rail loop?

April 19th, 2012 at 12:00 pm by David Farrar

Fiona Rotherham at Stuff reports:

Chinese investors have shown encouraging interest towards the Auckland Council’s planned $10.8 billion worth of infrastructure projects and other trade and investment opportunities, Auckland Mayor says. …

But the council has also been touting for early stage interest in three of its own major projects: the inner city rail link that central government has rejected funding for; a second harbour crossing; and for the new Innovation precinct in the Wynard Quarter on Auckland’s waterfront. …

, as our second largest trading partner, was one of the few countries with significant capital to invest offshore and was particularly interested in tourism investment, Brown said.

The first project off the block will be the $2.4b inner city rail loop and Brown favours a PPP (public/private/partnership) deal over borrowing, issuing infrastructure bonds, or raising rates and taxes in order to fund it.

An excellent idea. I look froward to the local Labour MPs supporting an innovative PPP such as this.

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18 Responses to “Will China fund Len’s rail loop?”

  1. Elaycee (4,333 comments) says:

    DPF says: “…I look forward to the local Labour MPs supporting an innovative PPP such as this.”

    Pterodactyls will fly down Queen Street first…..

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  2. Daigotsu (451 comments) says:

    A Labour mayor selling vital infrastructure to a foreign socialist dictatorship.

    Sounds about right.

    God, those Labourites sure do love them some China, don’t they? I guess they probably sigh wistfully when they see jackbooted thugs goose stepping across Tianemen square. They’d love to do the same here.

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  3. davidp (3,558 comments) says:

    I love this. On one hand the Greens hate China. On the other hand they want the rail loop.

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  4. Adolf Fiinkensein (2,834 comments) says:

    Ho ho ho! !

    Will this be before or after the Chinese buy the ex Crayfar farms?

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  5. bhudson (4,736 comments) says:

    I’m sure Russel and Julie-Anne Genter will be rushing to demand that Len and the potential Chinese investors demonstrate what benefits their investment would bring to the rail loop and Akl ratepayers that wouldn’t be realized through NZ investors. [Aside from access to the money in the first place of course.]

    I’m sure they wouldn’t want us to be tenants on our own railroad.

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  6. david (2,554 comments) says:

    Whoever funds it, if it gets built it will still be a dog and Auckland’s congestion will still be a problem. It doesn’t take a genius to figure out that building a subway though a volcanic area is dumb.

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  7. RRM (9,667 comments) says:

    If The Mayor / Council wants to do this project, and they can line up enough investors to do it, why does it matter what the local Labour MPs think?

    [Public transport is an area of endeavour where I would expect investors from a pseudo-communist nation to have HEAPS of expertise...]

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  8. RRM (9,667 comments) says:

    david (2,094) Says:

    It doesn’t take a genius to figure out that building a subway though a volcanic area is dumb.

    Not sure if joking, or just very stupid…?

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  9. krazykiwi (9,189 comments) says:

    Green idology (perchloric acid) meets commercial pragmatism (acetic anhydride). Result: Kaboooom :)

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  10. hmmokrightitis (1,572 comments) says:

    Oh, the irony.

    I await Labour justifying its position on selling partial ownership of state owned assets (bad) with support for China investing in Auckland rail (good)…

    Spin, much??

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  11. flipper (3,847 comments) says:

    Ahhhhhh…

    But will JK/WE/GB/SJ et al allow Red Len to set up this deal?

    Just remember, every cent the redmayor borrows is underwritten by ALL New Zealanders, since the law does not allow Local Government to declare bankruptcy….or to be put into liquidation. So, even in PPP it (borrowing) counts as national debt.

    So far as the rest of NZ (apart, of course, from the idiot red melons) is concerned, they can take their rail loop and stick it up their collective jumpers.

    Pay down our collective debt before embarking on loopy schemes.

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  12. RRM (9,667 comments) says:

    hmmokrightitis (342) Says:
    April 19th, 2012 at 12:32 pm

    I await Labour justifying its position on selling partial ownership of state owned assets (bad) with support for China investing in Auckland rail (good)…

    Spin, much??

    So you LIKE political parties to be driven by absolute adherence to blind ideology in all things?

    Funny, I’m sure I’ve seen you speak out AGAINST blind idiology on here in the past…? I’m confused.

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  13. Cunningham (829 comments) says:

    I cannot wait to see what the Greens, Labour think about this. They have stirred up so much xenophobia over the farm sale. What do they think about China funding the rail they so desperatley want? Also the fact it is Len Brown proposing it makes this even more interesting. Please MSM push this story for all its worth.

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  14. Mark (497 comments) says:

    It will be the usual leftie bullshit.

    China investing in NZ bad and China investing in NZ good.

    Only a leftie could think like that, because the have no principles.

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  15. hmmokrightitis (1,572 comments) says:

    RRM…

    “Im confused”

    Poor wee lamb. But then hardly unsurprising really.

    I can well imagine the attempts at justification, and the electorate calling bullshit on it. Blind ideology? No, just the usual convienience of the left when it comes to morality…

    Labour, mid 2000′s: “How can we flog more of Air NZ?”

    Labour, pre 2011 election: Those evil Tory bastards will sell EVERYTHING, including AirNZ, the sky is falling, we are all going to die!!

    You, and they, are completely beyond contempt.

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  16. RRM (9,667 comments) says:

    hmmokrightitis (343) Says:

    You… are completely beyond contempt.

    Funny, your Mum said something quite similar last night…

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  17. hmmokrightitis (1,572 comments) says:

    Highly unlikely RRM, my Mum is in care, suffering from the ravages of dealing with Parkinsons for the last 20 years, and unable to communicate for large periods of time, a shell of the strong woman she used to be.

    But Im sure you feel good about yourself.

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  18. PaulL (5,983 comments) says:

    Funny.
    1. Chinese owning our railroads? They might pull them up and take them back to China. Or employ lots of Chinese people without obeying our employment laws. Or break all our environmental rules – they’ll probably just bulldoze people’s houses without going through the RMA – like they do in China.

    2. PPP for getting a railroad built? But the local council will just use the private partnership as an excuse for putting up prices, thereby pricing ordinary NZers out of using it and returning excessive returns to the Chinese. Who, in turn, clearly wouldn’t let us build a railroad over there.

    All the time ignoring the actual problem – nobody will build this railroad without very large govt subsidy. It cannot make a profit. So who is going to pay? I’d invest if I was Chinese, so long as the gummint underwrites my returns. Who wouldn’t? My guess, the Chinese won’t invest because they’re astute enough to require guaranteed returns. Instead it’ll get bundled into some equity deal and sold to “Mums and Dads” who aren’t smart enough to work out the deal is a dog. Bit like the Qld motorway.

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