Auckland transport projects face big funding gap

Sunday, 9 June 2019

A Busway to Auckland Airport will be on the way following an upgrade to Puhinui Station. (Video from June 2019)

A big shortfall in Government funding for planned transport projects for Auckland is set to be revealed.

NZTA will brief Auckland Transport and council executives on Monday on what is due to be funded from the National Land Transport Fund over the next three years.

Despite Auckland's major projects having Government commitments, Stuff understands the wider programme of projects could be tens of millions of dollars short.

Public transport improvements could be affected by the gap in funding.

Auckland Transport and Transport Minister Phil Twyford both insist the gap will be sorted, but the details remain unknown.

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Transport Minister Phil Twyford (right, pictured with Auckland Mayor Phil Goff) insists the funding gap will be met, but the details of how are unclear.

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'The projects will be completed, and we are working collaboratively through the issues,' Auckland Transport chair Lester Levy told Stuff.

'It's a 'work in progress' and we're managing it through,' said Twyford.

Auckland's problem is the difficulty of getting its hands on funding committed by the Government in an agreed 10-year funding package.

The Auckland Transport Alignment Project (ATAP) was a bundle of priority projects first agreed between Auckland Council and the Government in 2016.

A revised deal under the Labour-led Government in 2018 topped up the funding to fully cover the cost of listed projects, and shuffled priorities to focus more on public transport.

However, while the funding is committed, AT still has to apply for it, project-by-project.

Auckland Transport estimates that across the projects normally funded 50-50 with NZTA, the share has tilted so ratepayers through AT, are paying 60 per cent at present.

AT told Auckland Council that up to $120 million of grants from NZTA might not turn-up this year, for projects included in the agreed ATAP list.

AT highlighted the frustrations in trying to advance agreed projects in the ATAP list, in a letter to NZTA.

'The current business case process for small-medium investments is slow and expensive with little outcome for the community being achieved for 4-7 years after a project is initiated,' wrote chief executive Shane Ellison.

In a March letter to councils, NZTA's acting chief executive Mark Ratcliffe gave early warning the funding pressures could affect road, public transport and walking and cycling improvements in the next three years.

Stuff understands the working relationship has improved since the March exchange of letters, and Twyford said he had underlined the need for resolution.

'I've made it very clear to the transport agency that we made a strong commitment to ATAP - we have to fix Auckland's chronic transport problems,' Twyford told Stuff.

'That means a big programme of investment - multi-modal - roads and motorways, walking and cycling and public transport.'

'If we don't do that we will be selling Auckland short,' he said.

Stuff understands some of the funding pressures could be lessened by changing the timing of what gets paid when, for longer-running projects.

Twyford underlined that, adding: 'We have a three-year programme and within that three years I want us to meet the commitments we made.'