CBD rail loop to start construction in 2020

June 26th, 2013 at 2:22 pm by David Farrar

John Key has confirmed the Government will make a contribution to the Auckland CBD rail loop, with construction starting in 2020.

The details will be released on Friday, and it seems there will be some other announcements also. What will be of interest is how much the Government is contributing.

I first blogged on the CBD rail loop in 2009, and commented:

The key thing is, it is not a choice between improving roads and public transport. They are not substitutes, but complementary.

Labour and Greens have been trying to say that it is one or the other – that one must cancel the Puhoi to Wellsford motorway extension to fund the rail loop.

I also noted at the time:

If it can be done for that much money, the economic argument really stacks up.

But the cost has grown from that initial $1.5 billion.

In 2010 I blogged:

I think it is the most sensible of the proposed rail projects for Auckland.

And said:

Let’s assume ratepayers will pay 3/4. Work out how much that is, and consult Aucklanders on whether they are happy with that investment. Then you can talk to the Government about its contribution.

The details of the cost split is critical. I have said people outside Auckland should not be significantly funding the Auckland rail loop. However if the Govt’s contribution can be funded from the approx Auckland share of the National Land Transport Fund (ie through petrol tax paid by Aucklanders), then that is fine with me.

I suspect that is why the start date is 2020. Up until 2020 the NLTF is funding the various road of national significance, and as they get completed, my guess is the CBD rail loop will be the next priority.

Incidentally as far as I know, the Government has never refused to fund the CBD rail loop. They have always been careful with their language, saying there is not currently enough money in the NLTF for it. Unless I have missed something, they have never said never (to paraphrase James Bond).

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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 Len Brown 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. …

China, 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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Len’s Auckland taxes

February 13th, 2012 at 9:41 am by David Farrar

After having failed to get the residents of Oamaru, Christchurch, Wellington and Napier to pay for Auckland’s CBD rail loop, Len Brown has proposed half a dozen new taxes as possible ways to pay for the loop.

The proposed taxes include:

  • Regional income tax – new income tax paid only by Aucklanders.
  • Regional payroll tax – new income tax paid by Auckland employers.
  • Regional GST – raising GST in Auckland.
  • Regional fuel tax – raising petrol and diesel taxes across Auckland.
  • Visitor taxes – nightly charge for hotel and motel rooms.
How novel to have a Mayor who is a member of the Labour Party propose to increase GST (in Auckland). I don’t recall that one being in the manifesto in 2010.
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