Auckland’s transport funding model isn’t working and private investment is a key solution, Auckland Business Forum chair Michael Barnett says.
Central and local government funding has led to the city’s slow pace of action when it comes to building a modern, safe roading infrastructure able to cope with fast growth, he says.
Barnett says local and international evidence shows the pay-as-you-go model funded by taxes and rates is not up to the task and doesn’t bring in enough money. Projects are dragged out over decades when they could be built far sooner.
About half the projects in the United Kingdom’s current transport infrastructure pipeline are now financed and delivered by the private sector. In Sydney, almost the entire motorway system has been funded privately.
New South Wales is currently investing $1 billion a month in the 2018/19 budget on road and rail projects, mostly privately financed.
“We see an opportunity to make 2019 a turnaround year for transport investment in Auckland,” Barnett says.
“A change of attitude to use private finance to fast-track action to deliver critically needed transport infrastructure would go a long way to fixing Auckland.”
Leveraging an accelerated “catch-up” pipeline of private sector investment opportunities in the transport sector is an area the Auckland Business Forum can assist, he says.
Auckland must increase private capital in transport infrastructure development if it is to stay ahead of chronic traffic congestion challenges, Barnett says.
