Maurice Williamson told the recent National Party conference about the need to build more roads. But at what cost? He told TV One’s Agenda about $300-400m a year, to bring the road network up to scratch. Some funding will come from increased public borrowing and there’s a role for public-private partnerships. Tolls will be considered on new roading, too. If it takes an hour to get to work in the morning and a new road could trim it to 20 minutes, “you’ve gotta work out what is that 40 minutes worth to you.”
Tolls Needed. Williamson said he didn’t know anyone who wouldn’t pay $3-$5. The interviewer took the higher number: five bucks twice a day, 50 bucks a week? Yes, said Williamson, but sitting for 40 minutes in congested traffic is “actually costing you more than that.” He doubted there would be many toll projects. Maybe four or five, such as SH20 Waterview, a second Auckland harbour crossing, Transmission Gully into Wellington, Waikato Expressway South, SH1 north of Auckland. They need building now; if you build them only from current revenue they won’t be finished at least for ten years and “NZers will just come to a grinding standstill.”

Anything Daft About PPPs? Like most things, there are economic pros and cons, but Labour Govts in Aust use them to build polytechnics, hospitals and schools and the Clark Govt paved the way for them in NZ with enabling legislation in 2003. In February the Govt decided to investigate the feasibility of advancing the Waterview Connection section of Auckland’s Western Ring Route as a PPP to “help ensure the option chosen delivered NZers the best value for money.” This week it welcomed the steering group’s finding that a PPP approach “could deliver greater value than conventional procurement.”

Toll No Surprise. As for tolls, they have long been debated to fund early completion of the Western Ring Route (rather than a regional petrol tax). The steering group has not ruled them out; its report makes no recommendation but notes combining tolling with a PPP would provide more value than coupling tolling with conventional procurement. But the Nats have gone toll-shy. Leader John Key cravenly declared Williamson got over-excited and was wrong to give specifics about something which is only a general principle. Bill English put the $50 a week frightener down to exuberance. Actually, it was all about politics.

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