6. Hon DARREN HUGHES (Labour) Link to this
to the Minister of Transport
What is the current status of the State Highway 20 Waterview Connection project?
Hon STEVEN JOYCE (Minister of Transport) Link to this
Following the release of the Waterview Connection business case commissioned by the previous Government, showing a cost of $2.77 billion including funding costs for a two by two - lane tunnel option, I have asked officials to investigate alternatives to the proposed tunnel option. I have received some information from officials, and I am seeking further information at the moment. I expect to be able to make an announcement of the Government’s view on this issue in the next few weeks.
Hon Darren Hughes Link to this
Does he prefer a surface road or a tunnel option for the Waterview Connection?
As I have previously said in this House, I prefer a cost-effective option for completing the very important State Highway 20 Waterview Connection. I have received some information from officials that will help me evaluate the options, and I am seeking further information, as I said in the previous answer.
Dr Jackie BlueThe business case report commissioned by the previous Government provided a cost estimate, including finance costs, of up to $2.77 billion for Labour’s preferred two-lane bored tunnel option. In anybody’s language, that is a huge amount of money for a 4.5 kilometre road. The business case further advised that if the project was to be paid for by, for example, a property tax, that tax would cost $460 for every dwelling in Auckland for 35 years.
Hon Darren Hughes Link to this
Can the Minister of Transport tell the House what of his actions lead the Auckland City Council transport chairman to say that the Government was disingenuously lumping in a lot of costs on the tunnel option that were not there before?
As I have previously advised that member, the business case I quoted from was prepared for the previous Government, which called for it from the Cabinet business committee on 18 August 2008. The business case refers to the finance costs during the construction period of the project, because a project of that magnitude could not be completed from the National Land Transport Fund and would need to be financed.
Hon Darren Hughes Link to this
Why does the Minister not just tell the people of Mount Albert that he is planning to slash and burn hundreds of homes in that community to build a surface road to complete the Waterview Connection?
Keith LockeWill the Minister put the Waterview Connection project at the back of the funding queue given the huge expense—whether it be the $2.7 billion for the tunnel as Labour seems to advocate, or almost the same amount for an overground version—given its extremely low benefit-cost ratio of 1:0 and the urgent need for more investment in Auckland’s public transport?
I absolutely agree with the member that there is an urgent need for investment in Auckland’s public transport, and, as he knows, the Government has made commitments to fund that major capital investment in Auckland, which is to the order of $1.6 billion. In relation to this project, the completion of State Highway 20 and the western ring route of Auckland, it is a very, very important project; however, I share his concern about the benefit-cost ratio of 1:0, and I await further information as to whether there is a more cost-effective way in which the project can be completed.