Government looks at borrowing to unclog Auckland's traffic

By HELEN TUNNAH

The Government is investigating borrowing hundreds of millions of dollars to help solve Auckland's traffic woes.

The region's mayors are hoping for $500 million for their transport plans and Finance Minister Michael Cullen said yesterday that all options for funding were being considered.

Any decisions should be made by the end of the year.

He said the Government's financial position was "sufficiently robust" that it could borrow for roading while sticking to its debt targets.

Any borrowing would target Auckland's transport infrastructure, but would not be specifically linked to any individual projects. Instead, the money would be spent according to already declared transport priorities for the region.

Any Government borrowing would be just one part of funding transport plans now being considered.

Regional mayors also want a 10c-a-litre petrol tax applied nationally (but distributed regionally by population), more toll roads and private-public partnerships for building roads.

It is estimated $2.5 billion will be needed over 10 years to fix transport problems in the city, and congestion and delays cost the economy $1 billion a year.

Dr Cullen said yesterday he did not want to raise expectations about the Government giving Auckland money.

"But it's clear, and I've given a commitment to Auckland mayors, that we will be looking at a range of alternatives to try to ensure that we can fill the substantial funding gap that they identified as being required to meet Auckland's roading needs over the next decade."

Creative thinking would be needed to decide funding options. But motorists would not be over-taxed, and revenue streams would be looked at.

Dr Cullen and Transport Minister Paul Swain met the Auckland Region Mayoral Forum last month to debate means of reducing traffic log-jams. Dr Cullen said then that cash would be made available, but would not say how much, how or when.

A joint central and regional government group was established to debate funding options.

Planned law changes through the Land Transport Management Bill could also open the way for more funding options, including toll roads.

Auckland Mayor John Banks said last night that mayors wanted $50 million a year from central Government for 10 years.

He said a regional petrol tax, applied across New Zealand, could also raise $100 million a year if Auckland was funded according to its population.

Any Government money would not just go on roads, but would also be used for public transport. "This Government has been very user-friendly. They recognise that gridlocked traffic across Auckland is costing the country $1 billion a year in wasted fuel, time and everything else," Mr Banks said.

"I want to see this bolted down by the end of the year. I've got every reason to believe that the Government shares that view."

Mr Banks said he did not think there would be public opposition to toll roads across the city.

"I think there's public opposition to the wasted fuel and time we spend in gridlocked traffic."

Costly gridlock

* Auckland's mayors want $50 million a year over the next decade to ease congestion.

* The mayors say a regional petrol tax could provide $100 million a year for transport spending, including toll roads.

* Congestion and delays cost the economy $1 billion a year.

- additional reporting Stuart Dye