Funding debate puts brakes on Wellington's big transport plans

Wednesday, 9 January 2019

A dispute over funding for roading projects is stalling plans to fix traffic congestion in central Wellington. (File photo)

Closed-door discussions over how ratepayers and taxpayers will split the bill are holding up the much-anticipated announcement of what the Government will do to fix Wellington's traffic woes.

The public reveal of which projects will be green-lit as part of the Let's Get Wellington Moving project, which is expected to cost up to $4 billion, has been stalled since mid-2018 because of uncertainty over funding.

The plans include an underground State Highway 1 route between widened Mount Victoria and Terrace tunnels. (File photo)

It is now understood that while central Government is prepared to fully fund a light rail system between Wellington Railway Station and the city's airport, the debate is still raging over how much central and local Government will contribute towards the expensive roading projects that have also been proposed.

Those projects include a State Highway 1 tunnel under Te Aro, which would connect duplicate Mt Victoria and Terrace tunnels.

The proposals are a part of a plan to fix traffic congestion between Wellington Airport and the Ngauranga Gorge, but agencies can't agree on who should pay for them. (File photo)

Wellington-based National List MP Nicola Willis says there are 'clearly problems' with the project. (File photo)

* Public supports new Basin road* How to get Wellington moving

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It's understood the Government is prepared to find a light rail system in the city. (File photo)

The entire programme, which is aimed at fixing congestion between Wellington Airport and the Ngauranga Gorge, is expected to cost between $3b and $4b.

Light rail is expected to make up at least $1b of that figure, with the cost being split between the New Zealand Transport Agency, Greater Wellington Regional Council, and Wellington City Council.

Wellington Chamber of Commerce chief executive John Milford says the ongoing delays with the project are frustrating. (File photo)

The Let's Get Wellington Moving joint venture began in 2015 after the Government's plans for a two-lane highway flyover near the Basin Reserve failed to get resource consent.

After years of planning and public consultation, the joint-venture's final proposal was initially intended to be released publicly public midway through 2018. But that was eventually pushed back to August, and then sometime before Christmas.

The latest target date is early this year.

Wellington-based National List MP Nicola Willis said the constant delays indicated there was 'clearly a problem' behind closed doors.

'This has dragged on and on. There were reasonable expectations it would be announced before Christmas. There's clearly a problem here.'

The Government reduced funding for state highways by $5b in its National Land Transport Programme, which was announced last year, and that had obviously created a problem, she said.

'That's the fund that would have paid for the duplicate tunnels and fixing the problems on SH1 through central Wellington.'

The Government has also ruled out a regional fuel tax to help pay for the projects.

'So there's definitely a [funding] hole there. The question is, how will it be met?'

Wellington Chamber of Commerce chief executive John Milford said the ongoing delays were frustrating, but not entirely unexpected.

'The first thing to acknowledge is it is a significant investment. We're talking about billions of dollars, and as such, we should probably not be surprised that it's taking some time,' he said.

'That doesn't mean to say I'm not frustrated with the time it is taking.'

The programme could take between 10 and 15 years to implement, so it was important it was done right and all aspects were locked in to safeguard against future councils or governments overriding any decisions, Milford said.

Transport Minister Phil Twyford was on holiday and unavailable for comment.

Duty Minister Iain Lees-Galloway said: 'Officials are still working with Wellington City Council and the Greater Wellington Regional Council on the Let's Get Wellington Moving package and we hope to have something to announce in the coming months.'