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Road investment advice ignored by Government

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This story first appeared in the August issue of TransportTalk – CLICK HERE to download the magazine FREE

Relatively new and inexperienced governments rely pretty heavily on advice from both the public and private sectors as to the impact of policy on various parts of the economy.

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However, this Government takes quite a different approach and appears to only seek advice that it knows ministers want to hear.

The first indication of this was the shock announcement last year that we would be doing away with all new oil and gas exploration.

That decision was made on almost no advice from either the oil and gas industry, or from government officials.

Knowing that any useful advice on the subject would illustrate serious flaws in the policy, the Government just refused to be drawn into any kind of debate about it.

The decision was made simply because it fitted in with their agenda.

Last year, the prime minister, under pressure due to low business confidence, announced the formation of a Business Advisory Council to provide her with free and frank advice on key economic issues and help develop the Government’s economic policies.

This was greeted with some enthusiasm by business leaders who hoped the council, which includes Miles Hurrell from Fonterra, Joc O’Donnell from HW Richardson Group, and chaired by outgoing Air New Zealand CEO Christopher Luxon, was a genuine attempt by the Government to start listening to them.

Less than a year into the council’s existence, the Government has already politically neutered it by dismissing its key recommendation to alleviate New Zealand’s “infrastructure deficit” through a comprehensive transport investment programme including new four-lane motorways.

“As such the 12 roading projects presently on hold or under review should proceed and be opened to private investment,” the council stated in a letter.

“These projects are investment ready, provide the beginnings of a pipeline of investable opportunities and would be an effective use of the roading capability developed in New Zealand over thelast 20 years.”

The advice was totally rejected by transport minister Phil Twyford who claimed, “the idea that private investors are like a source of free money is ludicrous”, and “borrowing money to build infrastructure is not a problem, getting the money to pay off the debt is the challenge”.

The Government was looking at a more “balanced” approach to transport modes, he suggested.

“If we were to do what the Business Advisory Council was saying, it would mean spending a great deal of money, more than $12 billion, on projects that have very low economic value,” Twyford told media.

Needless to say, it is frustrating to hear this coming from a minister that is presiding over some dubious public investment in transport.

It is also extremely discouraging for those of us who understand that New Zealand needs better and safer highways to link our communities and help drive our economy forward.

Another issue very much on RTF’s radar is the Government’s plan to improve compliance with the National Animal Identification and Tracing (NAIT) scheme.

RTF has voiced concerns about the role agriculture minister Damien O’Connor envisions transporters will play in it, including making it an offence to transport an untagged animal that does not have an exemption and having some high-cost penalties attached to that.

NAIT is a primary tool to counteract biosecurity incursions like mycoplasma bovis, and RTF fully supports the necessity of it and the wider biosecurity imperatives.

Currently, cattle and deer are included in the scheme that records location and movement of individual animal.

We believe responsibility for animals lies with the people who are selling and buying them, or the people at the animals’ end destination.

The transporters are the meat in the sandwich on this one, and we don’t believe they should be burdened with checking that animals are tagged.

NAIT is a tool to primarily protect farming, yet farmers have consistently failed to use it and the regulator has failed in its enforcement.

The Government is suggesting that transport operators protect themselves by demanding written assurance from farmers that all stock are tagged before loading.

RTF and the National Livestock Transport & Safety Group (NLTSG) are extremely sceptical as to the practicality of this suggestion.

The NLTSG through its chair Don Wilson is keen to hear the views of the industry on these proposals, in order to adopt a unified position that can be presented to Government.

Don and RTF’s Mark Ngatuere are therefore, holding a number of meetings around the country in early August to gauge the views of the sector.

The meetings were:

• Tuesday, August 6, 8am Distinction Hotel, Whangarei.

• Tuesday, August 6, 6pm Suncourt Hotel, Taupo.

• Wednesday, August 7,8am Sandford Livestock, Skeet Road, Hawera.

• Wednesday, August 7,1pm –Total Stock Crates, 30a Turners Rd, Feilding.

• Thursday, August 8,8am –Chateau Marlborough, Blenheim.

• Thursday, August 8, 6pm Ashburton Hotel, Ashburton.

• Friday, August 9, 10am Croydon Hotel, Gore.

I encourage all transporters with an interest in NAIT to attend one of these meetings or contact Don Wilson (027497 5825) or Mark Ngatuere (04 471 8285) to provide your feedback.

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