Transit eases off the gas on highway

By BERNARD ORSMAN

Transit is not guaranteeing future support for the eastern highway now that hundreds of millions of dollars are needed to proceed to the next stage.

Transit chairman David Stubbs told the Herald the board was aware the next stage of notifying the project and seeking resource consents would trigger land purchase costs of up to $1.2 billion.

The only way for Transit to proceed with the $4 billion eastern highway was to get the green light from local councils and a commitment from the Government.

"This is a huge project," Mr Stubbs said. "It is going to require a significant political mandate and it is going to take quite a while before the issues get worked through with all the different players."

The eastern highway is not part of Transit's 10-year plan in Auckland, nor is it high on the region's own transport strategy.

Transport Minister Pete Hodgson said last week that the eastern highway was not part of the Government's $1.6 billion transport package for Auckland and there would be no special funding for the 27km highway through the eastern suburbs to Manukau. Transit has agreed to be part of a $15 million study with Auckland and Manukau councils to define the scope and financial viability of the highway.

Transit has not joined Auckland City Mayor John Banks and Manukau Mayor Sir Barry Curtis in their promise to complete the highway by 2010.

Mr Stubbs' caution about proceeding further follows two funding issues that have arisen in the past month.

First, lawyers for Auckland City said going to the next stage of notification would trigger property purchases of up to $1.2 billion.

Manukau has $120 million set aside for these. Auckland City has nothing put aside.

Then, international consultants Deloitte said the project would need an annual subsidy of $250 million from the public purse on top of a $2.90 toll to drive the length of the highway.

Mr Banks and Sir Barry are advocating isthmus-wide tolls on motorways and arterial roads to fund completion of the motorway and public transport network, including the eastern highway.

The mayors have put a case to the Government for city-wide tolls.