National campaigned on a large and costly package of transport investment, promising to spend $24.8billion on transport infrastructure over the decade, including $17.3b on building 13 new roads of national significance.
Labour cast doubt on those figures at the time, arguing the policy was under-costed. Early indications since the election have suggested the projects in the plan are indeed more costly than budgeted - some substantially so.
It gets the name public-public partnership, because even though it is run as a public-private partnership, revenue from the scheme is kept with a publicly-owned entity, in this case, the Super Fund.
Brown told the Herald the Government was “committed to having innovative funding and finance tools to deliver the infrastructure New Zealanders need.
“I have met with the NZ Super Fund to discuss their approach to infrastructure investment internationally and domestically,” he said.
The new GPS will be published this year and will incorporate the coalition’s transport promises. It had been slated to take effect in July of this year.
“I am currently working closely with officials to complete the Government Policy Statement on Transport, which will boost economic growth, productivity, and improve resilience and reliability,” Brown said.
Green Party transport spokeswoman Julie Anne Genter, who was Associate Transport Minister when the Super Fund approached the former Government about its light rail plans, said she was not supportive of the PPP model, saying it was more costly than the Government simply borrowing the money itself.
“Ultimately, using any type of outside PPP to finance projects is really just borrowing, and it’s something that we’re going to have to pay back,” Genter said.
Green Party transport spokeswoman Julie Anne Genter thinks transport should be funded directly by the Government. Photo / Marty Melville
“Transmission Gully and Pūhoi to Warkworth are [PPP] highways that were signed up by the last National Government. They are taking a substantial portion of the transport budget now to pay back and they will for at least 20 more years,” Genter said.
“I you want high quality infrastructure, the best way to do that is to tax the wealthy,” she said.
The Super Fund also spoke with Brown about a joint venture with Copenhagen Infrastructure Partners to build a wind farm off the coast of Taranaki. Brown is the Energy Minister and has ministerial responsibility for the project.
The Fund was also keen under the last Government to get into providing Three Waters infrastructure for councils, using its balance sheet to help cash strapped councils invest in new pipes. The idea never went far under the previous Government, but the Fund remains keen on the idea.
This would use what is called the “SuperBuild” model, the same model that is being used at the Taranaki wind farm. The Fund says this model is an “end-to-end investment and delivery solution.”
The fund describes this as a model to cover the “design, financing, build and operation for transformational infrastructure and urban development projects in New Zealand”.
Despite Brown holding the Local Government portfolio, and therefore having responsibility for Three Waters, using this model to provide water infrastructure was not discussed at the meeting.
Thomas Coughlan is deputy political editor and covers politics from Parliament. He has worked for the Herald since 2021 and has worked in the press gallery since 2018.
