Cash woes derailing train plans

Auckland's ambitious rail expansion risks losing steam in a budget knockback by the Government's transport funding agency.

As the new Auckland Regional Transport Authority yesterday announced record rail patronage for last month, with 391,000 tickets sold, officials fretted over how to maintain the momentum next year given spending cuts.

Land Transport New Zealand, itself under pressure from ballooning roading costs, wants to "borrow" for national transport projects $80 million of $176 million in money promised to the Auckland region from the 5.6c a litre petrol tax rise imposed at the start of this month.

The reduced payout could cause delays in widening the Newmarket Viaduct and the Victoria Park motorway bottlenecks, with the rail expansion likely to be another potential casualty.

The regional transport authority has asked the Government for about $88 million towards a capital expansion budget of $224 million, which also includes $72 million in grants from the now-defunct Infrastructure Auckland and $64 million from the regional council

With territorial councils still responsible until next year for negotiating Government subsidies for local transport projects, most of the authority's budget is for big rail items such as a $58 million track duplication from New Lynn to Henderson.

It also wants to spend $18 million on upgrading trains, and $20 million on remodelling a cumbersome track layout at Newmarket, where westbound trains cause delays by having to back up to turn off the main trunk.

But Land Transport NZ, which is believed to be sceptical about the authority's ability to make fast enough progress on the full menu, says it can allocate only $45 million to the two track projects and a $5 million rail investigation study.

This could mean a shortfall of up to $37 million, and without any guarantees of funding for upgraded trains, although the regional transport authority is seeking clarification on that.

Authority chief Alan Thompson last night acknowledged difficulties in keeping up the momentum, but emphasised that his organisation was still in negotiations with Land Transport NZ and remained hopeful a duplicate line would be laid to Henderson next year.

However, Auckland Regional Land Transport Committee chairman Joel Cayford said the Government agency's funding formula came as a big shock in the midst of public consultation over the region's draft annual plans.

Transport Minister Pete Hodgson insists a $900 million boost to Auckland from the Crown account over 10 years was on condition that the region would continue to pay "its fair share" towards regional projects attracting another $716 million in funding from fuel taxes.

Dr Cayford said the $1.6 billion in promised extra money was supposed to be a "catch-up" after decades of under-investment in Auckland infrastructure, and he feared an ever-widening deficit if the Government insisted on greater local contributions.

Train delays

Rail spending items at potential risk in 2005-06 include:

* Western line duplication (New Lynn to Henderson) - $58 million
* Western line duplication (first stage of New Lynn to Avondale) - $3.6 million
* Interim rolling stock upgrade - $18 million
* Newmarket junction track remodelling - $19.7 million
* New signals and train controls - $13.6 million
* Maintenance depot and storage - $12 million