Spending on public transport services and new infrastructure could be cut. Photo / File
Spending on public transport services and new infrastructure could be cut. Photo / File
Auckland's transport budget is facing a $400 million funding shortfall over the next three years, placing an untold number of roading, public transport and road safety projects in jeopardy.
A source told the Herald it might work out all right but if it doesn't then "holy s…".
The potential fundingcrisis has arisen because the NZ Transport Agency, Waka Kotahi, has indicated to the Auckland Council it will fund only $2.3 billion of the $2.7b it has sought over the next three years from fuel taxes and road user charges.
Much of the $400m shortfall is for things like road maintenance and public transport infrastructure, which is often matched by a similar amount from ratepayers or the regional fuel tax. The combined effect is spending cuts of more than $400m.
Many of the projects undertaken by Auckland Transport qualify for a 50 per cent subsidy from Waka Kotahi.
Spending on public transport services could be cut. Photo / File
Alarm bells have rung at Audit NZ, which has been in talks with council management about the funding hole. Politicians and transport officials are also scrambling to find a solution.
If the funding problem is not resolved soon, the council may need to temporarily borrow more money to cover any shortfall until the situation is remedied, according to a council paper.
The problem has arisen over a pool of money in the National Land Transport Programme (NLTP) from fuel taxes and road-user charges, which is distributed by Waka Kotahi to top-up councils' transport plans.
The money is broken down into categories for local road maintenance, road safety, public transport services and public transport infrastructure.
The Government has stopped the Mill Rd highway for a two-lane road with safety improvements. Photo / Michael Craig
In late May, Waka Kotahi approved indicative funding allocations to councils from the NLTP, which were mostly lower than they asked for but an increase from the previous three-yearly NLTP. The available funding was not enough to meet the demands of councils throughout New Zealand.
Auckland put in a bid for $2.7b, significantly more than the $1.93b it was allocated in the 2018-2021 NLTP.
A Waka Kotahi spokeswoman said for public transport services, Auckland's figure of $1.4b was more than the funding available but the $1.33b indicative allocation was a significant increase from $1b in 2018.
"Waka Kotahi will continue to work closely with Auckland Council and Auckland Transport to support the provision of public transport services in the region," she said.
Spending on road safety could be cut. Photo / Jason Oxenham
The Waka Kotahi board will confirm the final funding allocations when it adopts the NLPT this month, said the spokeswoman.
Another sticking point is the Auckland Council and the Government have a separate, mutually agreed transport plan for Auckland, called ATAP (Auckland Transport Alignment Project).
The $2.7b sought by the council from Waka Kotahi is included in ATAP as part of the Government funding.
Mayor Phil Goff and finance committee chairwoman Desley Simpson said Transport Minister Michael Wood has given a commitment that the Government's share of funding will be paid in full.
Said Simpson: "We have a signed agreement for our funding in ATAP from the Government. We expect them to deliver on it. If the Government reneges, that's a breach of contract."
Auckland mayor Phil Goff and Transport Minister Michael Wood are in talks over a big transport funding hole. Photo / Supplied
Goff has refused to release letters to the Herald he and Wood have exchanged over the funding hole, batting the matter away to an Official Information Act request that will take weeks, if not months, for the letters to be made public.
Wood refused to guarantee the council would get its $2.7b over the next three years, telling the Herald "we're committed to deliver on the funding allocated for the agreed ATAP programme over the 10-year period".
"Auckland will still continue to receive record investments to help get the city moving, especially with programmes outside of the NLTP," Wood said.
He was referring to the NZ Upgrade Programme, a package of politically driven transport projects that include the $685m bike bridge across Waitematā Harbour, which Prime Minister Jacinda Ardern has signalled will not go ahead; rail electrification to Pukekohe and downgrading the Mill Rd highway in South Auckland to two lanes with a focus on safety.
