Auckland trams may cost $29 billion

The Herald reported:

The Government’s plans for light rail in Auckland could cost up to $29.2 billion, according to Treasury papers released this morning.

That is $15,000 for every household in New Zealand. So every family in Gore and Hastings and Levin will be paying $15,000 more tax so Auckland gets some trams to the airport!

If it costs $29.2 billion, then that is a cost of:

  • $1.22 billion per km
  • $1.22 million per metre
  • $12,167 per cm
  • $1,217 per mm

Think of the opportunity cost. A new four lane motorway costs around $50 million per km. For what the Government may spend on trams in Auckland you could construct a 630 km long four lane motorway. That is approximately the distance from Auckland to Wellington.

Other things you could get for $29.2 billion:

  • 314,022 kgs of gold
  • Two aircraft carriers
  • 60 747-8s
  • 16.2 million hectares of pines
  • 1,500 brand new primary schools
  • 20 new tertiary hospitals
  • 5,220 wind turbines providing 15,700 MW

But instead Labour want to spend that on a 24 km long tram track.

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