MPs approve putting tolls on existing roads

4.30pm

Existing roads could be turned into toll roads to fund new projects, a committee of MPs has decided.

The recommended change in the legislation was made by Parliament's transport and industrial relations select committee which has been considering the Land Transport Management Bill.

The most controversial aspects of this bill has been that it will allow public/private partnerships (PPPs) in the sector and new toll roads.

PPPs are arrangements where the private sector and public agencies work together to fund projects that might not otherwise get the go-ahead under existing funding arrangements.

The original bill specified that tolls could be charged only on new roads, not on existing roads, unless the existing road was connected to the new road.

The committee said, however, that it might sometimes be necessary to toll an existing road to fund projects.

The majority of the committee recommended allowing for tolling of existing roads "in exceptional circumstances".

Approval of the minister would be required before this could happen.

The bill says there will need to be alternative routes available before toll roads are approved.

Transport Minister Paul Swain said today the Government had decided the broader issue of tolling existing infrastructure, which was being addressed by the joint officials group on Auckland issues, was better suited to a later bill if necessary.

However, the select committee had included a degree of "flexibility" as a result of public submissions, Mr Swain said.

He said that under changes made by the committee, PPPs would be easier to finance and undertake, as some "onerous" provisions for PPPs had been removed and the bill allowed for early conditional approval by the minister.

Conditional approval meant investors would be able to prepare tender proposals knowing these would be approved provided all pre-conditions and statutory criteria were met, the committee said.

Also under the legislation, public road controlling authorities will be able to lease roads.

The bill also allows for regional councils to own and operate public transport services and infrastructure.

National and ACT had a minority view published in the committee's report, tabled at Parliament today, in which they said the changes would not deliver private sector investment in roading infrastructure.

They were concerned there was no cap on the amount of funding that could be moved from the land transport account to be spent on non-roading projects like cycle ways and pedestrian bridges.

They were also concerned to see coastal shipping included in the definition of land transport.

The requirement for public consultation over land transport problems was onerous, the two parties said.

National transport spokesman Roger Sowry said in a statement the legislation was unlikely to provide a "magic bullet" for the country's urgent roading needs.

New Zealand First said in a minority report that tolls were neither the fairest, easiest or most practical way of raising revenue for roading.

- NZPA