By PAM GRAHAM
Business reaction to the Government plan to revamp infrastructure financing ranges from scepticism to praise.
The Land Transport Management Bill is designed to pave the way for new sources of finance, such as public-private partnerships, and allow old sources such as Transfund to support rail as well
as roads.
The bill, released yesterday, was accompanied by a New Zealand Transport Strategy.
There was no disagreement between business and the Government that action was needed.
Congestion was prejudicing Auckland's efficiency and the solution demanded funds from non-traditional sources, said Geoff Vazey, chief executive of Ports of Auckland.
Policy must address the whole supply chain rather than picking out bits for favour.
But Lloyd Morrison, of Morrison & Co, a long-term investor in infrastructure and Tranz Rail shareholder, said, "We're sceptical that good investment opportunities will actually be there."
Transport Minister Paul Swain said Government policy on road, rail, sea and air would be integrated.
That means Transfund will finance rail projects more in future. Applications have been made for projects in Southland, Timaru, Manawatu and the eastern Bay of Plenty, among other places.
The Road Transport Forum said the economy would suffer if money from road users was used for rail. The Government would be funding a "basket case".
Swain said New Zealand was undertaking the biggest overhaul of transport financing in 20 years.
The bill suggests that projects will be limited to 35 years, the land remains in public ownership, the projects must have a "high degree of public support" and ministerial approval, and there will be no compensation from the Government if things do not pan out.
It says toll roads must be new roads, there must be alternative routes available, the community must be consulted and tolling must fit into a regional strategy.
