David Stubbs: Fast track has speed limits

Michael Barnett's story overlooks about half the facts. In 2000 only $74.4 million was committed to highway improvements in Auckland. Transit's budget for construction next year in Auckland will be around $280 million and current expenditure on projects under way in Auckland right now totals around $195 million.

The $67 million Grafton Gully development completed in December 2003 makes daily travelling much easier for many Aucklanders.

Barnett could however, be forgiven for not yet noticing the full impact of the $55 million of work completed on the Central Motorway Junction because until a further $140 million of work is completed, Aucklanders will not get the full benefit of the improved motorway-to-motorway connections.

On the North Shore, work has been under way since November 2003 on the $94 million Greenhithe Deviation, and the related $37 million duplication of the Upper Harbour Bridge is targeted for completion in June 2006. The first stage of the Northern Busway project is well under way and the contract for the second will be awarded in July.

Barnett is correct that an additional $1.62 billion was promised in December 2003 by the Prime Minister for Auckland transport - not all of it for roads.

But he seems to overlook that it is to be spread over a 10-year period. The petrol tax increase came into effect only last month.

If large projects such as big highway developments were quick and easy then they would be built quickly. It is not a matter of lack of urgency: it simply takes time.

Getting highway projects to the starting block and getting them right is a very complex business, no matter how they are funded.

Scope and requirements under the Resource Management Act (RMA) and the Land Transport Management Act often change initial schemes and it is right and proper that a range of community, commercial, public transport and environmental factors are reflected in highway design. Past problems with delays due to RMA processes have been eased.

In the case of Alpurt B2, the tolled highway under way north of Auckland, changes such as the use of tunnels rather than destruction of native bush have pushed up the price.

Worldwide and local demand is forcing construction prices up by approximately 9 per cent. In normal years the figure is 3 per cent.

We expect these current price rises to settle down over time. In the short term, though, such cost increases are impacting on both the pricing and timing of major projects.

Transit has always had to manage cost increases once projects are under way. Our latest completed project, Grafton Gully, was finished five months early and under budget - a pretty good result.

But for projects with a start date at the end of our 10-year plan it is wasteful to do final design and hence final costings until all issues are resolved. Barnett makes a sweeping allegation that construction and transport consultancy firms are sitting around twiddling their thumbs waiting for Transit to award tenders.

In fact, Transit is working with key industry players from Australia and New Zealand to develop timelines of when major projects will be tendered to ensure a steady flow of work and allow time to put together teams to make high-quality bids.

Importantly, as keeper of the public purse, Transit must make sure there is sufficient competition to provide for fair prices.

Barnett seems to have a particular focus on SH20 projects. He will be pleased to learn that Fulton Hogan will start work on the SH20 Mt Roskill extension in spring.

Construction funding for the SH20- to-SH1 Manukau connection has been approved and work will start early in 2006. Three short-listed design and construct consortiums are developing their competing proposals right now. Transit intends to push ahead with plans for the very significant SH20 Avondale extension.

Transit has been very keen to make progress on the Harbour Bridge-to-City project, as it is a key component of both the Central Motorway Junction and the Northern Busway, two projects which are under way.

However, in the face of strong local opposition, a solution has only recently been identified. This is a northbound tunnel and retention of the viaduct for southbound traffic. But there is still much work to be done on this proposal and a tunnel will be significantly more expensive.

Transit's board is now considering its final bid to Land Transport New Zealand for funding for the 2005/06 year. While the final allocation will not be known publicly until June 30, Transit has consulted in its draft programme on a budget of $985 million, a figure almost $200 million up on last year.

With all these indicators of progress, Barnett's assertions are at odds with the facts.

* Fran O'Sullivan's column will now appear on this page each Wednesday.

Key points

* Transit New Zealand's construction budget for Auckland next year will be about $280 million - compared to $74.4 million spent in 2000.
* The $1.62 billion promised by the Government in 2003 for Auckland transport is not just for roads and will span 10 years.
* Higher construction costs are affecting the timing and price of major projects but Transit's last completed project, in Grafton Gully, was under budget and ahead of schedule.