Britomart booster of $20m comes with tag

By WAYNE THOMPSON

Transfund New Zealand will make a $20 million booster payment to Auckland City's Britomart transport hub in recognition of its potential to ease traffic congestion.

But in return, the Government's transport funding agency wants to deduct half of the grant from what it would pay for improved patronage of the region's passenger transport.

The grant depends on the Auckland Regional Council agreeing to the trade-off.

Local body officials contacted last night were concerned at the thought of money being taken away from developing services to pay for infrastructure.

But the chairman of the regional council, Phil Warren, said he would recommend that his council accept the condition so Britomart could get the full $20 million.

"Britomart is imperative for the region as a whole," said Mr Warren.

"For too long the region has been subject to divide and rule. But on this project we are united as it is the number one priority in our regional transport strategy."

Auckland Mayor Christine Fletcher described Transfund's decision as an important milestone in the $199 million Britomart project.

Transfund had recognised the pivotal role of Britomart in the region's transport network and future.

The next task, she said, was to find a further $46 million to make the project a reality.

Mrs Fletcher said Auckland City and the region were united in their expectation that Infrastructure Auckland should bridge the gap.

Infrastructure Auckland, which finances regional projects, this month deferred making a grant to Britomart.

Transfund chairman John Anderson said its grant would be spread over three years. It would be made on condition that half of the capital payment would be offset by an equivalent reduction in future annual patronage finance paid to the ARC - for increased passenger transport.

The Transfund capital grant to Britomart fairly reflected the impact on traffic congestion resulting from Britomart.

Transfund should not pay twice for the same benefits, said Mr Anderson, as it would be if both patronage funds and Britomart grant were paid.

Patronage financing amounts to $25 million a year for Auckland bus, rail and ferry services.

The capitalisation plan could reduce that by about $1 million a year, according to one source.

Mr Anderson said that if the patronage generated by Britomart was close to or exceeded the councils' forecast, then the ARC would still receive extra under the patronage funding scheme.

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