Tag: Ministry of Transport

Government Has a Moment

Government Wants to Pound that Gold Plated Asphalt – No Matter HOW MUCH IT BORROWS

 

Something is of a serious amiss here. We have apparently no money and told to tighten our belts up to get things back into shape. Well the individual taxpayer has been just doing that, tightening up the belt – although our recent rises go screw that all over good and proper. However our National-led Government seems to be adopting the well and tried method of “do as I say and not as I do.” How so? By allowing the New Zealand Transport Agency to borrow billions of dollars on the Governments inane gold-plated folly called the Roads of National (Party) Significance. The NZ Herald outlines the situation:

From the NZ Herald

Govt to let NZTA borrow more cash

By Adam Bennett

The Government is to remove limits on the New Zealand Transport Agency’s ability to borrow in a move Opposition parties say is intended to ease a funding squeeze that threatens to delay the $9 billion roads of national significance programme.

But Finance Minister Bill English yesterday downplayed the prospect of substantial new borrowing.

The Transport Agency – which is funded via road user charges, fuel taxes, vehicle registration and license fees – is currently permitted to borrow money to “manage its cashflow” or cover short-term funding shortages. Transport Minister Gerry Brownlee yesterday said that ability is capped at $250 million.

However, he this week introduced an amendment to the Land Transport Management Act that would remove the limit and allow the agency to borrow “to fund future land transport projects, subject to the agreement of the Minister of Transport and the Minister of Finance“.

The ability to borrow more is consistent with the agency’s proposal to increase its ability “to support economic growth” set out in its briefing to the incoming Transport Minister Mr Brownlee last year.

To achieve that it proposed allowing greater balance sheet flexibility for the the National Land Transport Fund or the agency itself “through access to additional finance”.

[More at the The NZH site]

 

Why is the government being so dense and belligerent over this when there are perfectly more viable alternatives out there to this gold-plated Roads of National Significance nightmare before New Zealand. Seems the tar of the roads has blinded their vision and the petrol and diesel fumes are clouding the minds of our Government over this utter stupidity. And for those wondering on what an example of an alternative but more viable scheme in place of the RoNS, you can see HERE at VOAKL.