$270m upfront bill to secure rail route

Photo / Paul Estcourt

Auckland ratepayers may be faced with a $270 million bill to buy up properties in the way of the $2.4 billion central railway tunnel.

Mayor Len Brown would not indicate property purchase figures when he announced last week that his council and Auckland Transport would secure land for the tunnel's 3.5km route, even without a promise of Government support.

He said it was too early to discuss property costs, which would be provided for in a 10-year budget proposal he intended putting to council members before Christmas.

An initial $2 million budget for the coming financial year was for Auckland Transport preparations of a notice of requirement for properties such as those in the tunnel's way.

But a confidential Auckland Council report, made public today in a transport committee meeting agenda, contains a cost estimate of $270 million for potential property purchases.

About $140 million could be recovered from selling properties after the tunnel is built, making the cost $130 million.

It's understood the tunnel would not displace any homes but a number of commercial properties would be affected - particularly around its southern portal in Mt Eden, where it's intended to have connections in two directions to the western railway line.

Redevelopment plans for Westfield's Downtown shopping centre would also be affected by a tunnel starting at the western end of Britomart Station.

The report says it would be "usual" that the council or its Auckland Transport subsidiary bear the costs of route designation and property purchases as part of their contribution to a project.

The risk of buying properties before Government approval of the project would be mitigated by managing them commercially, with the prospect of on-selling if the tunnel didn't proceed.

Mr Brown said at the weekend that he had indicated last week that property purchase costs would be substantial, and continued to hope for Government support for the plan. "It's important we start the process of designating, protecting and consenting now and we have to make provision in the long-term plan so we can begin the acquisition process when appropriate."

But council transport committee chairman Mike Lee said although he was "all for pushing ahead", he was concerned about the risks of buying properties if the Government continued to dismiss its overall objective.

Transport Minister Steven Joyce said last week that while a Government review didn't think a case had yet been made for the tunnel, it was sensible that the council protect the route.

Mr Lee said if the Government believed it was good enough for the council to do that, it should be "good enough for them ... Beneath it all, it would appear the Government accepts it makes sense but they're unwilling to fund it for political reasons."

Hamilton link proposed
Auckland's disused Strand railway station is being considered for a daily commuter rail service from Hamilton.

A working party chaired by the Waikato Regional Council favours leasing a Silver Fern railcar from KiwiRail, but that would be unsuitable for manoeuvring in and out of the Britomart underground station.

It is therefore eyeing the Strand, which was the terminus for rail commuters before Britomart opened in 2003 and which is being upgraded by Auckland Transport for $1.2 million as an emergency back-up stop for Rugby World Cup trains.

Waikato council transport chairman Norm Barker says the Silver Fern option would avoid hefty costs necessary to extend platforms for an alternative proposal of sending normal Auckland commuter trains to Hamilton and back with extra carriages. But he said the working party, which includes representatives of the Auckland Council, KiwiRail, the Transport Agency, as well as Waikato local authorities such as Hamilton City Council, would keep looking at the alternative option.

That would allow a direct service into Britomart.

"It seems sensible not to put all our eggs in one basket in case there are glitches in using the Silver Fern or the Strand," Mr Barker said.

Green Party transport spokesman Gareth Hughes said a service stopping short of Britomart showed clearly why the Government must provide early funds for a tunnel from its western end to Mt Eden, turning it into a through station and offering more frequent and reliable trains.