NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / New Zealand

Funding questions over Labour's $5b trams for Auckland

Bernard Orsman
By Bernard Orsman
Auckland Reporter·NZ Herald·
11 Sep, 2017 05:57 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

An artist's impression of light rail on Queen St. Source / Auckland Transport

An artist's impression of light rail on Queen St. Source / Auckland Transport

Labour is unclear how it will fund a $5 billion plan for modern trams in Auckland, but says Auckland Council will shoulder a "significant" share of the cost.

Labour's Auckland Issues spokesman Phil Twyford today said he did not know how the costs will be shared between the Government and Auckland Council, except to say council will not pay the majority.

Twyford also did not know whether modern trams, also known as light rail, will sit on the Government or Auckland Council's balance sheet.

We are going to front up with some serious resources to fund it and make it happen

Phil Twyford, Labour

In her first public appearance as Labour leader, Jacinda Ardern promised fast modern trams along two routes from the CBD to the airport and West Auckland within 10 years at a cost of up to $5b. This would be followed by trams to the North Shore.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Labour has promised to fund its Auckland Transport package by a combination of increased expenditure, cancelling or scaling back existing transport projects like the $1.8b east-west road through the city's industrial belt and giving Auckland Council the ability to set a regional petrol tax.

Twyford said Labour would change the mix and priorities of projects in the city's 10-year transport plan and spend an extra $2.1b. The overall plan would cost $15b, including the light rail projects to the airport and West Auckland, and had a $6b funding gap, he said.

Twyford said Labour was committed to funding the full $15b programme, but could not say how much Auckland Council would pay towards trams.

"Auckland Council is going to end up contributing a significant amount of that, but probably the smaller amount, not the majority," said Twyford.

Advertisement
Advertise with NZME.

The Government and Auckland Council are sharing the cost of the $3.4b City Rail Link.

Labour Party Auckland Issues spokesman Phil Twyford.
Labour Party Auckland Issues spokesman Phil Twyford.

Asked whose balance sheet the trams would sit on, Twyford said: "We haven't worked that out yet. That is something we will work out when we sit down with Auckland Transport to renegotiate ATAP (the joint government-council transport plan)".

With Auckland Council starting work on a new 10-year budget, Twyford said Labour could have a positive impact on council's ambitions for public transport.

"We are going to front up with some serious resources to fund it and make it happen," said Twyford, saying the New Zealand Transport Agency would fund rail projects under Labour.

It is unclear how the council, which carries the $3.4b City Rail Link on its balance sheet, could absorb another $5b for trams when the council is right up against its debt ceiling, which, if breached could lead to a credit rating downgrade and drive up borrowing costs.

Labour has said a regional fuel tax of 10 cents a litre would raise $160m a year for Auckland Council. The Herald estimates a 10c-a-litre tax would raise $100m a year.

Auckland Mayor Phil Goff said Auckland recognises that we need to have skin in the game.

"We're prepared to share in the costs of investing in transport infrastructure in our city, but we need government to help us expand the base from which we generate revenue to pay for it," he said.

Goff, the former Labour MP who campaigned during the mayoralty for light rail, said trams to the airport is a priority and the latest ATAP update increases by $700m to $1.2b the money set aside for trams or rapid buses on the isthmus and to the airport.

"I welcome announcements from both parties that central government will contribute a significant share towards Auckland's transport investment needs.

"I favour road pricing mechanisms rather than general rates increases. That would include options of congestion charging, tolling or a fuel tax to help generate the levels of funding required for transport infrastructure investment in Auckland. We're also exploring the use of targeted rates and value uplift (higher rates for businesses that benefit from projects).

"I look forward to discussions with whoever forms our Government post-election to progress plans for light rail in Auckland," Goff said.

Advertisement
Advertise with NZME.

Transport Minister Simon Bridges could not be reached for comment.

Save

    Share this article

Latest from New Zealand

New Zealand

Sick social housing tenant fights eviction bid linked to disruptive visitors

06 Jul 03:00 AM
New Zealand

Afternoon quiz: What is the main language spoken in Egypt?

06 Jul 03:00 AM
AucklandUpdated

Watch: Large fire engulfs incomplete apartments in Māngere

06 Jul 02:30 AM

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

sponsored
Advertisement
Advertise with NZME.

Latest from New Zealand

Sick social housing tenant fights eviction bid linked to disruptive visitors

Sick social housing tenant fights eviction bid linked to disruptive visitors

06 Jul 03:00 AM

The Tenancy Tribunal heard she was 'extremely vulnerable' and was likely being exploited.

Afternoon quiz: What is the main language spoken in Egypt?

Afternoon quiz: What is the main language spoken in Egypt?

06 Jul 03:00 AM
Watch: Large fire engulfs incomplete apartments in Māngere

Watch: Large fire engulfs incomplete apartments in Māngere

06 Jul 02:30 AM
Large fire engulfs incomplete apartments in Māngere

Large fire engulfs incomplete apartments in Māngere

From early mornings to easy living
sponsored

From early mornings to easy living

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP