Brian Rudman: Politicians use Christchurch tragedy to push own agendas

Masonry from city buildings smashed into vehicles. Photo / Geoff Sloan

It's not just the strong wind stirring up dust and trouble in the aftermath of the Christchurch earthquake. It's also politicians riding into the confusion on their favourite hobby-horses.

Opponents of Auckland's long-delayed inner-city rail loop are seeking an easy victory by saying sacrifices must be made for "the sake of Christchurch".

A "senior Government source" has told the Herald the $2 billion rail loop now has only a remote chance of being built. More openly, Finance Minister Bill English is drooling about the partial sale of state-owned power companies to help pay for Christchurch's recovery.

This softening up of the electorate comes long before there's any accurate estimate of the Government's share of rebuilding costs. The Treasury's rough estimate is $5 billion over several years. Despite this vagueness, targets are already being nominated without any discussion of the merits of the decision.

Take the proposed rail tunnel, one of Mayor Len Brown's election pledges. After his victory in November, Transport Minister Steven Joyce launched a review declaring "it would be irresponsible for the Government to even consider being involved with a project of this size without being confident about having the full facts". This followed the release by Auckland Council of a very positive independent study claiming the tunnel would pay for itself three and
a half times over.

If it was irresponsible of Mr Joyce to back the project without having the full facts, surely it is equally irresponsible to scrap it without waiting for the completed report. By the time the new electric trains arrive in 2013-14, the underground Britomart Station is likely to be at capacity. The proposed loop will provide a two-way service in and out, enabling the station to cope with the expected growth of patronage.

At the very least, the Government should await the verdict of its own experts. This is not a case of Auckland versus Christchurch, just support for Mayor Brown's suggestion that "we all need to take a deep breath".

It's hard to understand why the rebuilding estimate spooks Mr English and his colleagues. In his Budget last May, he proudly introduced personal tax cuts costing the state $14.3 billion in lost revenue over the next four years.

The Government is now borrowing $300 million a week, or more than $1 billion a month, to cover this and says this is acceptable. Alongside such figures, the Christchurch "$5 billion over several years" sounds much less intimidating.

The Greens have proposed a temporary "progressive levy" on earners which would collect around $457 million a year to pay for the city's rehabilitation, but this hasn't gained much traction among politicians or commentators.

Herald economics editor Brian Fallow wrote yesterday that borrowing was another acceptable option, pointing out that the Government was now borrowing money at yields that are historically low.

What we must ensure is that Auckland isn't cowed into economic stagnation by politicians playing the Christchurch card. It's not a matter of either/or. To prosper, the country needs both its major economic power-houses firing on all cylinders.

Then there's the issue of outside help. Yesterday I had a call from a former neighbour, aghast at Prime Minister John Key's intention to seek a spot on American talk shows to shake the begging cap for Christchurch.

My caller cringed at the thought of rich New Zealand asking for donations, while the truly impoverished victims of quakes in Haiti and northern Pakistan and of tsunamis in the Pacific and Asia still moulder away in the most abject conditions. With the Prime Minister talking of extra spending to ensure overseas guests don't cancel their plans to come to the Rugby World Cup in Christchurch, my caller had a point.