The Hive gives the infrastrustructure section of Dr Cullen's just delivered speech to the Auckland Chamber high marks. It is a shame that the PM's electorate is involved. It might look to some that the Governemnt is prepared to fund the Rolls Royce option to avoid any inconvenience to the PM's electorate.
Cullen said:
We will also talk about new ideas for further investment in infrastructure. You will all be aware that the government has made massive investments in public transportation and roading projects – since 1999 central government spending on roading has doubled, our land transport investment in Auckland has increased by 330 per cent, and our total public transport investment is almost 12 times higher.
You will also know that we have a large work programme around our Digital Strategy and efforts to increase broadband access. All of this work will continue to gain momentum.
In 2008 our approach to infrastructure will be about more than investment – it will be genuinely innovative.
Today I am announcing that the government will actively explore the use of Public Private Partnerships for major infrastructure projects. Existing legislation allows us to pursue these partnerships, but we have yet to have a project of adequate scale to consider refining and using our legislative tools.
My colleague Annette King, the Minister of Transport, is announcing today that the Labour-led government has decided to take the next steps on what will be the largest roading project ever undertaken in New Zealand – the Waterview Connection to complete Auckland’s Western Ring Route. The government’s preference is for a deep tunnel option, which should minimise disruption for the community.
We want the project completed by 2015 and we are announcing today that we will actively investigate completing the Waterview Connection as a Public Private Partnership.
Doing so makes sense. This is a huge project, with a potential cost of $2 billion. It is a project that will have significant benefits for the entire Auckland economy. We believe that the private sector has much to gain from Waterview and that the entire community – and the taxpayer – could have much to gain from involving the private sector in its construction.
A steering group will be appointed in the next few days to consider the feasibility of progressing Waterview as a PPP. The group will have an independent chair and representatives from the public and private sectors. Consultation on the Waterview project will begin on 26 February and I hope the Chamber will contribute its views in that process.
This announcement shows that the Labour-led government is serious about maintaining our investment in major infrastructure projects. And it shows that we are willing to reach for innovative ideas to accelerate our economic transformation.
It is that willingness to innovate, to seek new approaches, and to be willing to make major strategic investments that will be required if we are going to raise our level of economic performance once again. That is what Labour will be talking about in 2008.
The Hive understands that Sir Brian Elwood is going to chair the steering group. We could think of no one better for this task.
The Hive hopes that a similar approach can be adopted for the much more cost effective second tunnels (Terrace and Mt Vic) that are currently under consideration.
