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Monday, May 13, 2024

Point of Order: Buzz from the Beehive - 13/5/24



NZTA takes the wheel after govt gives it the road map for regional roads (and puts a speed governor on the spending pedal)

Tolling was mentioned when Transport Minister Simeon Brown announced the government was re-introducing the Roads of National Significance (RoNS) programme, with 15 “crucial” projects to support economic growth and regional development across New Zealand.

All RoNS would be four-laned, grade-separated highways, and all funding, financing, and delivery options should be considered to deliver them in stages as quickly as possible, Brown said.

“The use of alternative revenue, funding, and delivery models will also support delivery of the RoNS. This includes Public Private Partnerships (PPPs), increased use of tolling, ‘Build, Own, Operate, Transfer’ equity finance schemes, and value capture, to generate additional revenue and deliver infrastructure in a more efficient manner.”

Today Brown has launched Roads of Regional Significance to extend the Roads of National Significance as part of the government’s plan to deliver priority roading projects across the country.

This time there is no mention of tolling – but there are some big numbers.

The most important is that “difficult decisions were made to keep costs within the existing $6.54 billion funding” and the government has made clear to NZTA that it must deliver these projects “within the existing funding envelope”, because there will be no additional Crown funding.

The media statement announcing the launch can be found on the government’s website along with foreign policy news from Winston Peters.

He announced New Zealand has voted in favour of a UN resolution which broadened Palestine’s participation at the United Nations General Assembly.

And a high-level New Zealand political delegation in Honiara has congratulated the new Solomon Islands government, led by Jeremiah Manele, on taking office.

Latest from the Beehive

13 MAY 2024


The coalition Government is launching Roads of Regional Significance to sit alongside Roads of National Significance as part of its plan to deliver priority roading projects across the country, Transport Ministe

12 MAY 2024


A high-level New Zealand political delegation in Honiara today congratulated the new Government of Solomon Islands, led by Jeremiah Manele, on taking office.

11 MAY 2024


New Zealand voted in favour of a resolution broadening Palestine’s participation at the United Nations General Assembly overnight, Foreign Minister Winston Peters says.

Simeon Brown said Roads of National Significance and Roads of Regional Significance will replace the NZ Upgrade Programme (NZUP) which (he maintained) was severely mismanaged by the previous government.

To jog your memory, the New Zealand Upgrade Programme was announced by Jacinda Ardern in January 2020 when she was PM.

Rail, roads, schools and hospitals will be built and upgraded across the country under the new $12 billion New Zealand Upgrade Programme announced by Prime Minister Jacinda Ardern.

But NZUP was subject to significant cost blowouts that resulted in project cancellations and delays across the country, Brown said today.

“When we came to government, we were advised that there would be a significant funding gap of up to $1.5 billion to deliver the NZUP projects. This is in addition to the cost increases which resulted in major project cancellations under the previous government, such as Mill Road,” Mr Brown says.

This had been the consequence of Ministers determining project scope and funding decisions which was leading to project delays and “scope creep”.

Luxon’s ministers are being cut out of the action: the government has delegated decision-making responsibilities around project scope and delivery to the NZ Transport Agency (NZTA).

“We are therefore changing how decisions are made on these projects and NZTA will be progressing with two RoNS and ten RoRS. Two further projects will now be incorporated into the Mill Road and Whangarei to Port Marsden Roads of National Significance listed in the draft Government Policy Statement on land transport 2024.

“In order to continue to deliver these projects, difficult decisions were made to keep costs within the existing $6.54 billion funding. We have made clear to NZTA that it must deliver these projects within the existing funding envelope, as there will be no additional Crown funding,” Mr Brown says.

Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton

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