10. Hon MAURICE WILLIAMSON (National—Pakuranga) Link to this
to the Minister of Transport
Does she have confidence in the board of Land Transport New Zealand?
Hon ANNETTE KINGHon Maurice Williamson Link to this
How can a Minister have confidence in a board that finished the last financial year with $224 million of unspent land transport funding, which was in error by over 1,000 percent on what it had budgeted for?
Because every dollar of that money has been allocated to projects around New Zealand—projects that members in this House want to see done.
Although the money is not spent at this time, it has been allocated to projects. It will be spent. I compare that with that member’s record, where year after year the Government funding agency posted a deficit—in other words, it spent money it did not have.
Hon Maurice Williamson Link to this
What does it say about the funding process that Land Transport New Zealand adopts, when in an area like the Bay of Plenty, for example, a whopping $26 million of money has not been spent; and does that mean that there are simply no roading problems in the Bay of Plenty that qualify for the money?
It certainly does not mean that, and they will get the money. It means that the projects were not ready to be done in the financial year in which the money was voted.
Bob ClarksonThe good news for Mr Clarkson—and probably more so for Mr Peters, who will get the benefit of it—is that that money will be spent in the Bay of Plenty.
Hon Maurice Williamson Link to this
Why is the Minister at present trying to put legislation through this Parliament that will allow regions to increase the regional petrol tax by 10c, when in fact Land Transport New Zealand now has amassed a surplus of $329 million in cash alone that it cannot spend?
Because that money is allocated to projects around New Zealand, and those regions are entitled to the money. The regional fuel tax is for projects that particular regions want, over and above the money in the Land Transport Fund. People in the rest of New Zealand say that it is fair enough that there is a regional petrol tax in Auckland, for it to pay for its electrification. Why should Southland, Christchurch, Wellington, or other parts of New Zealand pay for a project that is not in their region and that is outside the money already allocated on a fair basis?
Hon Maurice Williamson Link to this
I repeat my question: how can the public have any confidence in a Government that is putting legislation through to increase further the petrol tax, when Land Transport New Zealand’s annual report shows that it has amassed, in cash and in investment assets, a whopping sum of $329 million of unspent money—cash and investment assets of $329 million—which would buy eight Kōpū bridges or five Warkworth bypasses, neither of which are on the 10-year radar for land transport spending?
In terms of expenditure in transport, that sum is a matter of weeks of expenditure, actually. I need to say to the member that in terms of the Government funding agency there have been surpluses and deficits, in relation to that account, going back for years. For example, when he was Minister there was a $68 million surplus in 1996-97, and when that is compared with the little amount the National Government spent on land transport at that stage, it was a large amount. Of course, we never heard a word about it then, so what we are hearing from this member today, in my view, is just hype.
Hon Maurice Williamson Link to this
Why has the Minister reappointed members of the board of Land Transport New Zealand to the establishment board of the new transport agency, when they have clearly demonstrated that they are totally incompetent and unable to run a portfolio like land transport?
I think that that is a very insulting comment. Board members have shown that they are able to manage billions of dollars and build transport infrastructure around New Zealand, mainly because they have been given the money to do it. Secondly, they have been prepared to spend billions, not a few hundred million.
They will spend that money, and they will spend it in the regions. Already they have projects for the next financial year from those regions.