Funding gap for Auckland balloons to $700m

Public transport developments in Auckland are being threatened by a massive funding shortfall.

The Auckland Regional Council has today announced a funding gap of at least $700 million - and possibly a lot more.

Chairman Mike Lee said without the money, the city's public transport system cannot be improved to the level Aucklanders are crying out for.

It will mean delays to increases in bus and rail services.

The ARC will not be looking to raise rates to pay for the shortfall - it believes anything more than the current proposed increase of 4.9 per cent is beyond the limits of public acceptance. It already spends about half its rates take on public transport.

Mike Lee said plans such as electrifying the city's rail network before the Rugby World Cup in 2011 are simply now no longer affordable.

He said limited improvements will be possible, but the wider wish list, which ARC believes will eventually be essential if Auckland wants a world class public transport system, is not.

ARC wants a law change giving it more control over rapidly rising public transport costs.

- NEWSTALK ZB