The axing of major roading projects in the Government’s revised New Zealand Upgrade Programme (NZUP) has been met with strong criticism from a number of groups.
Deputy prime minister Grant Robertson and transport minister Michael Wood have announced the Government will add a further $1.9 billion to the original $6.8b NZUP announced in early 2020 for roads, rail and public transport.
However, increased costs due to COVID and climate commitments meant a number of key projects had to be “re-scoped”, they said.
This includes the canning of the 21.5km Mill Rd four-lane corridor project and the 22km four-lane SH1 Whangarei to Port Marsden corridor project.
The Mill Rd project, originally estimated to cost $1.3b, will instead be given safety upgrades. The Whangarei to Port Marsden project, originally estimated at $692m, will focus on a Marsden Point rail spur instead.
A new project has also been announced with $785m allocated for the Northern Pathway walking and cycling structure which includes $100 million for the land section. It will be a separate structure alongside the Auckland Harbour Bridge.
“NZUP is already supporting over 1000 jobs with 13 projects underway, helping to secure our economic recovery,” Robertson says.
“COVID-19 has increased construction costs around the world, and we’ve done the work upfront to understand the impact on NZUP projects which were announced pre-pandemic.
“Fully funding the new estimated costs for every project would have cost up to $6 billion extra on top of the original $6.8 billion, so instead we’ve taken a balanced approach with a mix of additional investment and a handful of projects being re-scoped while also keeping a lid on debt.
“We are using an additional $1.9 billion set aside in the multi-year capital allowance to support our targeted investments – this is being used so we can keep delivering projects and creating jobs across the country to support our recovery,” Robertson says.
Meanwhile, Wood said in light of the increased costs and climate commitments, it was important to take another look at the programme.
“Recognising the need to decarbonise our transport system, we’re rebalancing the package to increase investment in rail, public transport and walking and cycling.
“If we had proceeded with Mill Road as originally scoped, it would have cost up to $3.5 billion and at peak produced six tonnes of CO2 emissions a day.
“Instead, we’ve focused on delivering important safety improvements to Mill Road, upgrades to SH1 and rail, and new rail stations connected to public transport, walking and cycling infrastructure. This rebalanced package helps manage debt, reduces emissions and supports housing growth,” Wood says.
“The Marsden Point rail spur will be a strategic investment in Northland’s future prosperity, getting heavy trucks off the road to make the highway safer, and reduce emissions.
“We know safety on SH1 is a concern for locals, so there will be targeted safety upgrades, including median barriers, along the route.
“Meeting our commitment to decarbonising transport means that we have to start doing things differently. This re-balanced NZUP package shows our intent, and to guide future investment I intend to amend the Government Policy Statement on land transport to provide Waka Kotahi with the clarity it needs to make investments consistent with our country’s decarbonisation goals,” Wood says.
As for the Northern Pathway, he says it’s the “missing link” in Auckland’s walking and cycling network.
Work is also continuing on planning for an additional Waitematā Harbour Crossing which is likely to be a tunnel. An initial business case was finished last year, and work is being done on enhancing the Northern Busway and developing an additional crossing that includes rapid transit, Wood says.
A loss for Northland
Whangarei mayor Sheryl Mai says she was in “disbelief and shock” on hearing news that four-laning to Marsden Point would be scrapped.
She says the project has been a regional transport priority for more than 10 years and assurances were made that the project would go ahead.
“Our top priority projects are road, rail, Northport expansion, new dry dock and the Navy relocation. Now I wonder if we will see any of the remaining priorities given any consideration,” Mai says.
“It is one thing to ask for the region’s input into this kind of long term planning and investment, and to act in accord with that input.
“To ask for our input, give us every reason to believe we have been heard, and then pull the rug out from under us with no warning is another thing altogether.
“There will be benefits to our region with investment in rail infrastructure for freight, and that is good news. However the road provides the connectivity that all people use – locals, visitors, and freight transporters.
“I know that business, our community, and the local government sector remain united on the need for the road project to proceed and we will continue to push for it despite setbacks,” Mai says.
Costs will continue to rise
Manurewa-Papakura ward councillor Daniel Newman told Stuff.co.nz he was disappointed with the Government’s decision to downgrade the Mill Rd project.
“This Government isn’t serious about ensuring that we have a roading network that is fit for the future in Auckland. And I think it is using climate change as an excuse to dial back on critical infrastructure like Mill Rd,” he said.
“I’m not surprised at the cost blow-out, because it’s an enormous project that will include the cost of acquiring properties and the land is expensive in Auckland.
“But it needs to be done and if they don’t get under way with it at $3.5b, the cost of buy-backs will only continue to rise,” he said.
Moving freight and people more difficult
The Employers and Manufacturers Association says the downgrade of the New Zealand Upgrade programme will make moving freight and people around Auckland and Northland more difficult.
“While it is good to see most of the projects going ahead, the increased costs associated with the programme are the result of not getting the projects started quick enough,” EMA advocacy and strategy head Alan McDonald says.
“We understand delays related to COVID-19 have meant costs have increased, but it doesn’t change the fact that all 32 of these projects were essential, and any modifications to others may mean they don’t deliver the full benefits,” he says.
Priorities are all wrong, opposition says.
National’s transport spokesperson Michael Woodhouse says we should be thinking about more capacity for cars, freight and public transport.
“The Minister’s business case indicated that for $1-$2 billion a replacement bridge could be built, which should be done in a way to support cars, freight, cycling and walking.
“It’s unclear why Labour is opting for a piecemeal solution when we know the current bridge has serious structural issues.
“It’s clear Labour’s transport priorities are all wrong. If the second harbour crossing isn’t done properly then Aucklanders will be fighting gridlock for decades to come.
“National would be prioritising work on a second harbour crossing that could accommodate cars, freight, buses and trains. Because that is what Auckland will need in the future,” Woodhouse says.
