Transit wants early start on Puhoi toll road project

Transit New Zealand hopes to start building its tolled motorway extension to Puhoi before Christmas, despite a late holdup in gaining Government approval for the $320 million project.

The agency will ask the newly formed Land Transport New Zealand at its inaugural meeting next week for an immediate $20 million advance on a $180 million construction grant approved by Land Transport's predecessor, Transfund.

This follows word from Transport Minister Pete Hodgson that although he is "favourably inclined" towards tolling motorists to pay off a loan for the remaining $140 million of the total cost, the Government will not give final approval until officials report on various tolling systems.

Transit hoped for an order-in-council before Christmas, and is under pressure to give the Environment Court a starting date this month or face being ordered to close the road linking the end of the existing Northern Motorway to the coastal highway, via Orewa.

But Mr Hodgson said yesterday that it was important to get the system right on the first toll road proposed under the Land Transport Management Act.

Officials from the Treasury and Ministry of Transport would therefore join Transit and Land Transport NZ to form a working group to report by the end of March on various collection systems.

Mr Hodgson said the extra work would also provide Finance Minister Michael Cullen with more information when he considered the case for lending Transit the $140 million.

But assuming the funding and tolling issues were resolved, statutory criteria were met "and there are no further matters to attend to", he expected to be able to recommend that the Cabinet approve the project as a toll road.

Transit chairman David Stubbs acknowledged last night that there would be some risk in starting to build the 7km motorway extension in the meantime, but said this was far outweighed by the risk of delays during the summer construction season.

He said tolling was a sensitive issue, so it was "fair enough" that the Government should want the project peer-reviewed.