Category: Featured

Auditor General on our Infrastructure

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Not a good situation

 

Earlier this week the Auditor General released a rather damning report against both our central and local governments about addressing infrastructure needs for New Zealand (not just Auckland). Now by infrastructure I am talking about physical which includes but often most forgotten until something goes wrong fresh water, waste water, and storm water.

This extract from Bob Dey:

Auditor-general issues blunt warning on infrastructure

on Wednesday 26 November 2014
Auditor-general Lyn Provost issued a blunt warning yesterday: New Zealand communities, in general, need to sharpen their information about & commitment to infrastructure or they will guarantee failure of services.

Mrs Provost warned that population shifts could make some communities unable to continue paying to maintain basic services such as sewers & water supply, while growth in others – such as Auckland – would need to match housing, working & services very carefully to avoid failure.

New Zealand’s economy for the past 200 years has been mostly about growth, although removal of some services such as post offices from rural towns, starting in the 1980s, was a warning about what might befall small communities.

Mrs Provost’s report, Water & roads: Funding & management challenges, was presented to Parliament yesterday, along with findings from research carried out by the NZ Institute of Economic Research that provides an historical perspective of local government investment trends, the forecast investment outlook and observations on differences in investment between regions.

The economic research showed infrastructure investment came in waves, creating investment “echoes”, and that large renewal cycles were pending.

Ironically, there’s been a tendency to underspend infrastructure budgets. Mrs Provost gave some explanation of this – that visible assets such as roads did need more frequent renewal than underground pipes. But, in short, her report can be summed up thus:

  • What you can see is politically sexier than what you can’t, but the infrastructure you can’t see is essential
  • Population shifts could make it impossible for shrinking communities to pay for continuing infrastructure maintenance.

Implicit in the report is a requirement to examine funding: Underground infrastructure is funded locally, roads & bridges nationally.

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Source and full post: http://www.propbd.co.nz/auditor-general-issues-blunt-warning-infrastructure/

 

The Auditor General’s Infrastructure Report can be seen below:

 

Further commentary on this at a subsequent podcast

 

Auckland Will NOT Get A Referendum on Transport Funding – Update 3

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Governing Body Decides

 

In breaking news the Governing Body of Auckland Council has resolved to not to give Auckland a referendum next year on our transport funding options. The option that would have most likely been in play was whether Auckland wants a $2 motorway toll to help fund the $12 billion transport funding gap that is affecting projects like the Otahuhu and Manukau Transport Interchanges.

The vote failed 9-11

 

UPDATE

The Governing Body has resolved the following:

Recommendations
That the Governing Body:
a) agree to not undertake a referendum to seek feedback from Auckland electors on
transport investment and funding options.
b) direct the Chief Executive to commission an independent statistically reliable survey
to help inform choices about transport funding.

Vote passed 12-9

 

UPDATE 2

From Facebook

Cameron Brewer
Just now ·

Those of us pushing for the Mayor to deliver on this promised public (non-binding) referendum on alternative transport (eg tolls) funding just failed 9/11. However a small win for me as my amendments to his winning (12/9) proposal to do the consultation through the LTP instead, were successfully added which will hopefully help the public and the subsequent analysis.

C) that matters pertaining to alternative transport funding options are separated from the rest of the consultation document in a visually distinct way to highlight their significance to the people of Auckland

D) that feedback from submissions and responses to the LTP consultation document on alternative transport funding are independently reviewed and analysed by a suitably qualified and independent party who will report back their findings, and those from the statistically accurate survey, directly to the Governing Body.

 

 

UPDATE:

The Governing Body has resolved to send out to consultation the establishment of the new Auckland Development CCO. The Recommendations were:

Recommendation/s
That the Governing Body:
a) agree to progress evaluation of the establishment of an urban development agency
in order to further the council’s urban development objectives.
b) agree that the option to establish an urban development agency by combining
Waterfront Auckland and Auckland Council Properties Ltd is the preferred option.
c) note that the proposal for a new council controlled agency will be provided for in the
Long Term Plan and subject to public consultation.
d) agree to transfer responsibility for managing the council’s diversified financial assets
portfolio from Auckland Council Investments Limited to Auckland Council treasury
team, from 1 July 2015, and to reduce the number of Auckland Council

 

 

More as it happens

 

Otahuhu and Manukau Transport Interchange Confusion

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Still no clear communication from Auckland Transport

 

Source: Auckland Transport
Source: Auckland Transport

Otahuhu Interchange goes ahead but there is a catch Podcast

 

The excerpt from communications with Auckland Transport:

At the moment, Auckland Transport are operating in a very uncertain funding environment as they deal with potentially lower LTP capital expenditure in the Basic Transport Network (BTN) versus that in the Auckland Plan Transport Network (APTN). 

Auckland Transport have opted to progress design and potentially early works (within funding) on projects that would be funded in earlier years under the APTN to ensure momentum is not lost. 

And in the case of these two projects, the following would be the desired timeline without the constrained BTN funding:

  • Construction on the Manukau Bus Interchange project would start in the 1st quarter of 2015 with target completion in late 2015. Currently, the detailed design process is underway.
  • Construction of the Otahuhu Bus Train Interchange would start later this month with expected completion in late 2015. Currently, the detailed design process is underway.

 

In addition, Auckland Transport are currently exploring re-prioritisation options for these 2 projects.  As this is currently being worked through, no update to the draft LTP has been made. If re-prioritisation cannot be achieved in 2014/15 and in the early years of the LTP, Auckland Transport would only deliver on initial improvements within the current funding, with the delivery of full specification in 2020/21. 

Current Basic Transport Network (the Mayors proposal) budgeted figures:

Manukau Bus Interchange

  • We have design funding of $3.8m in 2014/15
  • Then there is no funding provided in the BTN programme until 2020/21
  • Total required funding is planned at $23.9m (inflated)

Otahuhu Bus Train Interchange

  • We have design and some early works funding of $6.3m in 2014/15
  • Then there is no funding provided in the BTN programme until 2020/21
  • Total required funding is planned at $26.8m (inflated)

—-ends—–

 

 

The BTN vs APTN Funding Situation

 

Context and Historic Posts on the Otahuhu and Manukau Interchange Situation (from oldest to newest)

Public Transport Projects Being Used as Political Weapons?

Update on Otahuhu Interchange

Otahuhu Interchange Proceeds

 

Updates as information comes to hand