National, Labour battle over claimed multi-billion transport blow out

Thursday, 29 February 2024

Transport Minister Simeon Brown has defended the coalition Government’s transport plans after claims of a multi-billion dollar blow-out sledged at him by former minister David Parker.

Brown fronted Parliament’s transport select committee on Thursday morning, immediately resuming his election campaign attacks on Labour’s transport record and the “significant funding gap” for its “huge promises” that were not delivered.

But Parker, the previous transport minister under Labour, accused Brown of misleading the public on the prior government’s record and his own plans, asking him about official advice showing Brown “really undercooked” his transport costings.

“There is a fiscal hole there for you between $8 billion and $22b,” Parker said.

Brown - who is currently drawing up the new Government’s transport policy statement - confirmed he had received a “range of advice” about the potential cost of National’s promised projects. But he did not confirm a reported billion-dollar blow out, instead saying he was committed to developing various transport funding models.

Transport officials had advised Brown, according to a NZ Herald report, that the total cost of National’s promised 13 “roads of national significance”, three public transport projects, and the building of an Ashburton bridge, could amount to between $30b and $46b.

The plan National campaigned on at the election costed these projects at $22b.

“We need a range of funding and financing tools on the table to deliver the infrastructure that New Zealanders need,” Brown said.

But Parker questioned where the revenue would come from, given the Government had committed to not increasing fuel excise duty and road user charges, and had cancelled the Auckland regional fuel tax.

Brown said there was “significant interest” offshore in providing capital to fund infrastructure in New Zealand, something the Government would be pursuing by creating a national infrastructure agency.

Parker and Brown clashed throughout the hearing about each other’s claims of success and failure in the transport portfolio.

Parker said Auckland’s city rail link project, started by a prior National government, lumped Labour with a $1b project increase. He also said Labour increased spending on road maintenance by 65% - despite Brown’s attacks on the prior government over potholes.

“It's not just about the money,” said Brown. “It's about the outcomes. There had been a 27% reduction in pavement rehabilitation over the last six years, and so it's a typical Labour Party approach to talk about how much money but actually, New Zealanders and road users are interested in what the outcomes are.

“I think outcomes matter.”

Parker said: “Well so do I, but the stats are not as you present them.”