2. Dr JACKIE BLUE (National) Link to this
to the Minister of Transport
What recent progress has been made on the western ring route in Auckland?
Hon STEVEN JOYCE (Minister of Transport) Link to this
This morning I was pleased to have the opportunity to be in Auckland for the announcement of the start of the tender process for the construction of the Waterview Connection. The New Zealand Transport Agency process will run in parallel with the consenting process, using the provisions of the Environmental Protection Authority to save time and money and to ensure that the views of the local community are heard. This is a significant milestone towards unlocking the benefits that the completed western ring route will bring by providing relief for Auckland motorists.
The New Zealand Transport Agency also announced today that the board of the agency has approved up to $2 billion to complete the remainder of the western ring route, including the construction of the Waterview Connection. Once finished, the western ring route will create 48 kilometres of continuous motorway as an alternative to State Highway 1 through central Auckland. It will also contribute to better links for businesses and freight between key industrial hubs in the cities of Manukau, Auckland, Waitakere, and the North Shore—or, as they will soon be, different parts of Greater Auckland.
Given that he announced in May last year a cost of $1.4 billion for the project using a cut-and-cover option, then in December last year $1.4 billion covering the cost of two tunnels, then in January this year $1.65 billion for the project, and now today’s $2 billion figure, at what point will this project be finalised and the costs cease to go ever up?
The numbers the member quotes are incorrect. The $1.4 billion price tag was in relation to the Waterview Connection as scoped by the previous Government for its cost of $2.8 billion. It was also done in 2009 dollars. The $1.65 billion relates to the full length of not only the Waterview Connection but also the remainder of the western ring route, as I mentioned in the answer to the substantive question, in 2009 dollars. The estimated up to $2 billion is full out-turn costs, which was recorded in the statement that was released in January 2010.
This is the largest and most complex roading project ever embarked upon in this country, and there has never been a better time to let the contracts, given industrial capacity both domestically and internationally. I also note that as large as it is, it is not quite as large in one aspect as first proposed by the previous Government. The previous Government’s $2.77 billion price tag in 2009 dollars for the Waterview Connection has been replaced with a cost of $1.4 billion in 2009 dollars for the same scope project, and a total of $1.65 billion in 2009 dollars—or $2 billion out-turn costs, I point out for the member opposite—for not only the Waterview project but also the widening of almost the entire length of the north-western motorway from St Lukes Road interchange to Westgate.