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$25m spent and counting – but spades ‘in the ground’ on Wellington tunnels project?

Tuesday, 30 June 2026

Wellington’s mega highway project has already cost $25 million for contractors and consultants, while the minister in charge claims spades are already in the ground – partly due to purchases made long before he was born.

In response to questions from Green Party transport spokesperson Julie Anne Genter, Transport Minister Chris Bishop said $25.3m had so far been spent on contractors and “external providers, including professional services” for the Wellington State Highway 1 Corridor Improvements Roads of National Significance project. The figure excludes consultant costs for property.

The projects, which is forecast to cost up to $3.8b and designed to ease Wellington congestion, is for second Mount Victoria and Terrace tunnels, and major road changes around the Basin Reserve and Vivian St. Full funding is yet to be confirmed but $185m is approved for progress design, consenting and early works.

Bishop in 2023, just before the last general election, bemoaned the Labour Government’s inaction over Basin Reserve upgrades and a second Mount Victoria tunnel. “Traffic congestion has worsened while expensive consultants make millions,” he said at the time, while insisting construction would start on both this term.

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Bishop has now told The Post spades were “in the ground right now”.

The latest ground investigations were complete, property acquisition was under way and consultation was continuing. Design work was being finalised and an assessment of effects was being done ahead of lodging fast-track approvals, he said.

“Roading projects can’t start without investment in designations, route protection, and consents, all of which are already under way.”

The Post records show property acquisitions began with 86 Kent Tce in 1922 and began in earnest with 13 Paterson St, Mt Victoria in 1966. A Mount Victoria pilot tunnel was finished by 1974 – nine years before Bishop was born.

Under questions in the house from Labour MP Ginny Andersen in November, Bishop said the beginning of an infrastructure project was normally when, “me or another minister goes and turns a sod”.

Blast from the blast: Workers making the breakthrough of the pilot tunnel for the second Mt Victoria tunnel in 1974.
Blast from the blast: Workers making the breakthrough of the pilot tunnel for the second Mt Victoria tunnel in 1974.

An agency or Government secured funding, then business cases were done, construction funding was confirmed, and a contractor was engaged, he said.

“Ministers normally like to turn up to the start of projects that they’ve had some involvement in funding to make sure they get built. So, projects start, literally, when contractors arrive on site and start drilling holes and digging dirt. That’s what construction starting means.”

Bishop on Monday said his answer was “tongue in cheek“ as transport projects started regularly without a minister present.

Genter said the Government had blown more than $25m on consultants and contractors “for a concept that’s unlikely to ever become a reality” due to a “massive funding shortfall”.

Roads of National Significance nationally were expected to cost $56b. but nobody could say how they would be funded, she said.

“Minister Bishop is frantically dancing on the head of an extremely fine pin.”

The Government needed to focus that spending on public transport to relieve congestion and help with the cost of living, Genter said.

Labour transport spokesperson Tangi Utikere said Bishop was likely embarrassed by the lack of funding and budget.

“Spades are not ‘in the ground’ … they’re gathering dust in the garden shed.

“Spending money willy nilly without transparently sharing expected budget and progress just goes to show National don’t have a handle on the projects they have chosen to prioritise.”