A lot of discussion in parliament yesterday around the news that NZTA will be able to borrow money to a greater extent than it has been able to previously.
It seems that Brownlee is playing down the impact of the proposed change – saying that it’s not much change from the status quo and perhaps even that the change is only related to changing the mechanism for funding toll roads. I’m not quite sure whether that’s correct.
Reading through comments on the earlier post has been quite educational and I think Stu perhaps put it best by saying the following:
I think we need to split out the issues here. Are the RoNS an appropriate use of public funds? Generally not. Is is in principle a reasonable idea to borrow against future revenue streams so as to fund capital improvements? Probably yes, if the improvements are worthwhile.
If NZTA does have the capacity, through the legislation change, to borrow much much more than it has previously been able to, then I think it puts a greater requirement on ensuring that money gets spent on projects that stack up well. It’s pretty clear that a number of the RoNS projects really don’t fit that criteria. To be fair, until there is a business case for the City Rail Link that finds general agreement on the project’s merit, it probably falls into the same basket. Of course I’m a bit more confident the CRL will meet that grade than projects such as Puhoi-Wellsford and the Wellington Northern Corridor.