6. Hon DARREN HUGHES (Labour) Link to this
to the Minister of Transport
Has he received the report on the future of the Waterview Connection he requested in January; if so, when does he plan to release it?
Hon STEVEN JOYCE (Minister of Transport) Link to this
Yes, I have recently received the report on the Waterview Connection. However, further work is being undertaken before Cabinet will be in a position to provide its view. I can assure the member that Cabinet’s view will be released to affected residents and to all New Zealanders as soon as possible.
Hon Darren Hughes Link to this
Minus financing costs, what is the cost of the twin two-lane tunnel option for the Waterview Connection that Labour proposed, and how does it compare with the same project—again, without finance costs—of August 2008?
The cost of $2.77 billion provided in the business case that was sought by the previous Government and provided to the incoming Government after the election included financing costs of $200 million. For the member’s benefit—I have some concern at his skill level—I tell him that without those financing costs the cost is $2.57 billion.
Hon Darren Hughes Link to this
Why will the Minister not just front up about the actual cost of the Waterview project without the extra things he has included in it, which no other project faces—like financing costs or the additional scoping of the project—and tell us that the cost of the project is not $2.77 billion, as he keeps claming publicly, but rather $1.98 billion if finance costs, which no other project faces, are not included?
That is much better. I have been quite upfront about this matter, and the business case has been published. The $2.77 billion includes $240 million of costs for increasing capacity on State Highway 16, and financing costs of around $200 million, which are simply for during the period of construction. Under the business case sought by the previous Government, that funding was added because there was an understanding that the project would not be completed from within the National Land Transport Fund, and that therefore those funding costs would need to be provided during the project’s construction. I can tell the member, in order to alleviate his concerns, that any alternative options for advancement of the Waterview Connection will include comparisons on a like-with-like basis.
Dr Jackie BlueUnfortunately, despite inheriting plans for twin two-lane tunnels at a cost of $2.77 billion in total, I found that the previous Government had given no indication as to how such an expensive project could be paid for. Regardless of which option is progressed under this Government, the option will be funded. We will not be unfairly raising a community’s expectations of a solution that is completely unaffordable in the New Zealand context.
Hon Darren Hughes Link to this
Does the Minister intend to release at the end of May the revised Government policy statement, which realigns money away from public transport, coastal shipping, road maintenance, and policing; if so, can we expect funding for the Waterview Connection to be included in it at a cost of $1.98 billion for two twin tunnels?