Group advises on road costs

The Government is to appoint a ministerial advisory committee to investigate the escalating costs of building New Zealand's roads.

Engineer Clive Tilby would chair the group which also includes Jo Brosnahan, Alan Isaac and Stuart McKenzie.

Transport Minister Pete Hodgson said Mr Tilby was a professional engineer consultant with knowledge of the construction industry.

Ms Brosnahan, also a consultant, has public and private sector experience.

Mr Isaac is the recently retired chief executive of KPMG's Wellington and Auckland offices and Mr McKenzie, previously a professional engineer working in the construction industry, is a partner in a venture capital firm.

The advisory group follows the Government's rejection of a draft road building programme that deferred a number of roading projects due to a $685 million shortfall.

Highway building agency Transit has outlined a $12 billion programme for the next 10 years but, due to forecasted drops in revenue and an increase in costs, it is $685m less than previously predicted.

- NZPA