City rail scheme bill rises by $47m

By PHILIP ENGLISH

Tranz Rail is demanding $112 million from Auckland councils to allow them access to the region's rail corridors for a rapid transit scheme.

The cost is $47 million more than the councils expected, and it is not known where the extra cash will come from.

Auckland Regional Council members were yesterday briefed on the latest development in the drawn-out negotiations between the region and Tranz Rail.

The $65 million heads-of-agreement deal, worked on for a year by consultants, is still on the table, but Tranz Rail's move could jeopardise its future.

The councils will have to approve the extra $47 million. If not, the implication is that the access deal will fail and the region will have lost a year in the task of freeing Auckland roads from congestion.

The regional funding body, Infrastructure Auckland, will give $30 million towards the deal, subject to agreement being reached by December 8.



The chairman of the ARC transport committee, Les Paterson, said the change by Tranz Rail was a significant development. ARC members were receptive, although they wanted more details.



The present agreement worked out between the region and Tranz Rail involves Auckland finding $65 million for access to western rail tracks, and between $2.25 million and $4.25 million a year for 70 years' access to the southern trunk line.

Infrastructure Auckland chairman John Robertson said the proposal from Tranz Rail had always been a possibility.

He said a proposal to sell air space above the corridor for development was an option for raising $47 million. Another option was to approach the national public transport and roading funding agency, Transfund, which has so far been cool to a request from the region for $35 million towards the $65 million deal.

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