Rudman's city: Time running out for rail fix

By BRIAN RUDMAN

For the past 11 years, Auckland local politicians have been trying to get a rapid transit system up and running. Three different proposals have been advanced in that time, each dependent on gaining access to the under-used rail corridors running through the region.

In 1992 and again in 1997, long negotiations between the rail operator - in 1992, New Zealand Rail, in 1997, Tranz Rail - to install light rail networks foundered. Watching the slow disintegration of the present rapid transport talks, it seems the politicians are intent on making it three ducks in a row.

As in 1992 and 1997, the sticking point is money. But this time Auckland is flush with the readies, courtesy of Infrastructure Auckland's piggy bank. It's just that for 101 reasons, our politicians do not want to pay up. Equally tight-fisted is the Government, despite campaign pledges less than a year ago about finding solutions to Auckland's transport woes.

The story so far: after the collapse of the 1995-97 talks with Tranz Rail about supplying access for a light rail system, the region tried to reach agreement with Tranz Rail about its providing an improved commuter service. When these talks fell through, the region decided the solution was to buy access to the rail corridors. These would become the platform for a rapid transit system. Whether that was bus, light rail or rail was to be decided later.

On June 2 this year, Tranz Rail agreed in principle to sell a 70-year lease on sections of its rail corridor in Auckland for $65 million. The region also agreed to pay a further $2 million a year for access to the main trunk line south. Settlement date is supposed to be September 30, but no one I have spoken to believes the deal will be done by then.

Already the price seems to have gone up. The $2 million plus inflation a year for the main trunk line quickly went up to $2.25 million. The latest rumour says it's now up to somewhere around $4 million a year. Either that or a one-off payment of $47 million.

All of which is a bit academic given that the Government has turned a deaf ear to demands from Auckland that the Crown pay $35 million.

The various Auckland cities are also refusing to pay any part of the $65 million plus $2 million to $4 million a year rental. That leaves just Infrastructure Auckland, which has been asked for just $40 million. The local politicians live in hope - despite no public encouragement for this optimism - that the Government will finally come good.

Compounding this chaotic situation is the reluctance of an unknown number of local and national politicians - particularly those of a leftist persuasion - to do deals with Tranz Rail.

Some fear that buying the 70-year lease to Auckland's rail corridor will be the de facto start to the selloff of the national rail network, something they are ideologically opposed to. Others find it totally unpalatable to have to pay more than $100 million for access rights to a rail corridor that Tranz Rail obtained for a token $1 just seven years ago when it bought New Zealand Rail from the Government.

Certainly the price is unpalatable. But so are the alternatives for Auckland if the politicians fail us in the present negotiations.

Short of renationalising the railways without compensation - which I suspect even the Alliance would baulk at - what other options does Auckland have?

One would be to go on as we have been and watch the roads and motorways of a city expected to double in population within 50 years rapidly clog to a stop.

Another would be to build an alternative rapid-transit corridor. But it would take 10 years of resource consent hearings to get that under way and the compensation costs would be eye-watering.

For example, compensation of around $30 million to $40 million has been budgeted for the widening of Dominion Rd. Imagine, then, the figures involved in buying out homes and businesses along a transport corridor 40km long.

Imagine, too, the cost to Auckland's economic growth if a deal is not struck this time round.

The worry is, after 11 years of fluffing around, our politicians have totally lost sight of the big picture.

Getting Auckland moving – Herald stories

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