Eastern Corridor bill could hit $3 billion

By STUART DYE

Auckland's controversial Eastern Corridor could now cost up to $3 billion - six times the original estimate.

Projections for the highway link between Manukau and Auckland City have risen from a predicted $460 million to as much as $2.9 billion, according to the latest report from infrastructure consultants Opus.

Despite this, Auckland City Mayor John Banks said the benefits "clearly" outweighed the cost.

"As long as that is so, we will continue to be champions for the biggest roading project undertaken in the country," said Mr Banks.

He said original estimates had not been as in-depth as the Opus investigation.

"At the time $460 million was suggested, I said it was wrong."

More roads had been added as options to the project. It was also increasingly likely that other projects would end up costing more than expected, said Mr Banks.

"We know it's expensive and there will be more surprises in the cost of building, for example, State Highway 20.

"It's only a matter of time before we sit here saying it's going to cost more than expected."

The cost of fixing Auckland's road network is now estimated at up to $8 billion.

The giant leap in costs has already been criticised.

Dr Joel Cayford, chairman of North Shore's works and environment committee, said the council had been kept in the dark about work on the highway.

"There are options that are going to have a significant impact on the North Shore involving a tunnel and bridge connections and we would expect to be involved at an early stage," Dr Cayford said.

National Party transport spokesman Roger Sowry said that until a single regulatory authority was in place, spiralling costs were inevitable.

"The complex project can't be done with multiple public bodies competing to shift responsibility. It can't be done while no one has control and no one has a reason to contain the costs," he said.

Meanwhile, Transport Minister Paul Swain met the Auckland mayoral forum to update it on how funding would be found.

The forum wants a handout from the Government and legal powers to impose road tolls, congestion charges and regional petrol taxes.

Mr Swain said "significant progress" had been made.

Seven work streams were under consideration by a joint working group of officials from Auckland and Wellington.

The agreed initiatives are expected to be announced in December, allowing them to be incorporated into the 2004-2005 budget programme.