KEY POINTS:
Motorists look more likely to face tolls on Auckland's newest motorway extension following a decision today in favour of private funding.
A steering group has advised the Government that a public-private partnership (PPP) would be the best way of building the new $2 billion section of the city's
Western Ring Route.
Finance Minister Michael Cullen said a PPP, which would mean tolls of about $2 a trip, was looking "pretty positive".
National's deputy leader Bill English said in Parliament this afternoon that this would amount to $20 a week for commuters, which would wipe out the average tax cut taxpayers are set to receive in October.
Debate over an acceptable level of tolls was sparked on Sunday by National's transport spokesman Maurice Williamson who said a toll of $3 to $5 a trip would be acceptable to most drivers.
However he was shot down by leader John Key who said Mr Williamson's comments were not party policy. A toll of around $2 a trip was more likely, he said.
Transport Minister Annette King today said the group examining how best to build the road said the PPP approach could provide greater value than conventional funding.
She said the report identified several critical factors that would need to be met for the project to be successful, and she had ordered officials to do more work before the Government committed to a PPP.
Ms King said if it went ahead could be used as a blueprint for other projects such as a new Auckland Harbour crossing or the proposed Transmission Gully Highway, north of Wellington.
Treasury, Transport Ministry and New Zealand Transport Agency officials would report back to ministers by October or early November.
"Once this work is done Cabinet will be able to make some firm decisions on how to progress Waterview."
Dr Cullen and Ms King announced the Waterview Connection project in February, saying a public-private partnership would be considered for a 5km section of road which will complete the city's Western Ring Route.
Dr Cullen said today Waterview was a complex project and key elements such as how the risk would be shared were yet to be worked out.
"The way that that is constructed is quite important in terms of final outcome whether it is a good deal from a government perspective."
He said the toll would be quite small as most of the cost of the project would still be met from government funding.
He said tolls on some new major roads were inevitable, but would only be levied if there were realistic alternative routes.
They could be levied on roads that were built through PPPs, or on 100 per cent state-funded roads.
The Government wants to complete the Waterview project by 2015, when the Western Ring Route will be a single 48km motorway.
- NZPA, NZ HERALD STAFF