More than 200 consultants and companies clipped the ticket on Labour’s failed light rail project in Auckland, according to details released under the Official Information Act.
Labour racked up a $229 million bill over its six years in Government for work on light rail from the CBD tothe airport, exceeding the $51m spent on the failed cycle bridge over the Waitematā Harbour, and $26m on former Prime Minister Sir John Key’s flag referendum.
A breakdown of light rail costs, released by the Ministry of Transport to the Herald, shows Labour spent about $66m in its first term on light rail, and $163m in its second term.
The biggest spend-up was with multinational engineering firms Arup and Aurecon, paid $30.9m and $33.6m respectively between 2022 and 2024 for detailed planning and design work on the $14.6 billion project.
The two firms accounted for about half of the $116.4m spent by the Auckland light rail programme, set up by then Transport Minister Michael Wood with an independent board to progress light rail in Labour’s second term.
About 200 firms and consultants were used during this phase. PwC pocketed $4m, $11.6m went on professional non-engineering services, and staff costs were $3m.
The light rail programme spent modest sums on sensitive expenditure, such as catering, travel and accommodation.
In a display of optimism, Auckland Light Rail paid $33m for the Kiwi Bacon building in Kingsland in September last year, when National was on course to win the election the following month with a promise to scrap light rail.
NZ Transport Agency Waka Kotahi (NZTA) and the Ministry of Transport have spent about $55m between them on light rail.
During Labour’s first term under Transport Minister Phil Twyford, NZTA spent $34.9m on planning work, a business case and other costs.
The Ministry of Transport’s bill for light rail was $19.4m between 2019 and 2024, and includes $5.8m in staff costs and $2.1m in legal fees. The ministry also hired about 85 companies and consultants, some of whom worked on the light rail programme.
Transport Minister Simeon Brown yesterday said the previous Labour Government touted light rail as a project that would make Auckland a world-class city, “but left office having not delivered a single metre of track or a business case for this project while spending $228m in the process”.
“While promising light rail, Labour abruptly cancelled the pipeline of infrastructure projects our city needed, including Mill Rd,” he said.
“We campaigned on scrapping Auckland light rail as part of our plan to get Auckland back on track.”
Had light rail continued, it could have cost $29.2b, he said.
Brown pointed to other transport infrastructure the Government was focused on delivering for Auckland, including the Northwest Rapid Transit Corridor, the Airport to Botany Busway and completion of the Eastern Busway and the City Rail Link.
“These projects will deliver for Aucklanders and enable them to get to where they want to go, quickly and safely,” he said.
In March, Labour leader Chris Hipkins admitted his party’s Auckland light rail and KiwiBuild policies were “undeliverable” when proposed ahead of the 2017 election.
“Auckland light rail and KiwiBuild were massive commitments, and the reality is they were too ambitious to do from Opposition. We shouldn’t have gone into the campaign promising those two things.
In 2017, Labour’s new leader Jacinda Ardern promised to build light rail from the Auckland CBD to the airport within a decade. After six years in Government, Labour had not built a single metre of track, and the incoming National-led Government scrapped it.
Asked if Labour was considering light rail, or a version of it, in future, the party’s transport spokesman Tangi Utikere said as National introduced more costs for drivers, such as increasing fuel taxes, car registration costs and more tolls, it will be essential to come up with public transport solutions that worked for Auckland’s future.
“Listening to the people of Auckland to get this right is critical. Labour is committed to do this to come up with a new plan for Auckland’s transport needs,” he said.