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Home / New Zealand / Politics

The 200 consulting firms working on Auckland Light Rail

Thomas Coughlan
By Thomas Coughlan
Political Editor·NZ Herald·
22 Dec, 2022 05:15 PM4 mins to read

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The Government has spent $50 million on consultants for Auckland Light Rail.

The Government has spent $50 million on consultants for Auckland Light Rail.

The Government has hired about 200 different consulting firms to work on its Auckland Light Rail project in the five years since 2017, costing over $50 million.

National’s transport spokesman Simeon Brown described the spend as a “gravy train”, noting that despite the volume of firms clipping the ticket, Aucklanders are a long way from having their hypothetical light rail tickets clipped themselves. Not an inch of the line has been built, despite an election promise from Labour leader Jacinda Ardern to have the first stage from Britomart to Mt Roskill built by now.

The spend, revealed in answers to written Parliamentary questions from Brown, included multiple consulting firms, law firms, and transport specialists. The Government even engaged market researcher Colmar Brunton.

Firms hired by the Government include multiple companies that are direct competitors with one another, like law firms Chapman Tripp, Meredith Connell, Buddle Findlay, and MinterEllisonRuddWatts. They also include competing consultancies like PwC, EY, and KPMG.

A spokesman for Transport Minister Michael Wood said that a “city-shaping investment like this requires a significant investment, but it is an asset that will serve Auckland for generations, and the costs of doing nothing are higher. Congestion alone costs the Auckland economy around $1.3 billion a year (pre-Covid) which would be $65b over 50 years”.

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The spokesman said that the consultants were hired when work required “specific expertise, is technically specialist [sic] or creates a significantly higher workload over short periods of time”.

He said this was an “appropriate way to manage the very broad demands on a small permanent workforce”.

Brown said the Government was delivering for consultants rather than Aucklanders.

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“Instead of delivering light rail for Auckland, Labour has delivered millions for consultants who have all taken maximum advantage of Labour’s inability to deliver on major infrastructure promises,” Brown said.

“Labour promised this project would be completed to Mt Roskill from the Auckland CBD by 2021, but have failed to deliver against this promise,” he said.

Wood’s office shot back at claims of a lack of delivery, noting that money spent up front was a worthwhile investment down the track.

“Projects of this scale require significant planning, investigation, engagement, design, and approval/consenting at the front end before construction work can begin. So almost inevitably, there’ll be spend on that sort of expenditure before projects start to have their shovels in the ground,” the spokesman said.

“This includes utilities investigation, project management, transport planning, civil engineering, procurement, urban design, environmental planning, quantity surveying, funding and finance, engagements, modelling and economics, scheduling, risk management, processes and systems,” he said.

The Herald contacted some of the firms on the list. Chapman Tripp said it couldn’t respond in time, Aurecon declined to comment due to client confidentiality. Others did not respond.

The spokesman said the ministry and Auckland Light Rail followed Government sourcing rules, listing large contracts on the GETS website, which is used to encourage competitive bids for Government contracts.

“This enables both to engage the most appropriate provider for specific pieces of work,” the spokesman said.

The spokesman defended the number of different suppliers contracted on the project.

“Auckland Light Rail is not attached to any one supplier, it selects the best supplier to deliver the best outcomes for the different stages of the project,” he said.

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“Our vision is about futureproofing Auckland for future generations with the modern, linked-up rapid transit network that most large, growing international cities already have. Aucklanders overwhelmingly want action on a rapid transit system for their city and we will deliver it,” they said.

Auckland Light Rail Ltd chief executive Tommy Parker said an alliance including Arup, Aurecon and other infrastructure specialists had been established to work with ALR Ltd to progress the next stage of New Zealand’s largest transport project – the planning and design phase of the 24-kilometre-long light rail system.

“The Alliance team includes planners, designers, station architects, engineers, economists, environmentalists and consenting and business case experts. Many have the expertise not available in New Zealand to develop a modern and safe light rail system.

“The work they are delivering for ALR Ltd includes the development of the light rail route and proposed locations of up to 18 stations, the Corridor Business Case, how the system will be built and funded, and preparing consent applications.”

Parker said organisations responsible for delivering large-scale projects like Auckland Light Rail and did not employ large teams of experts necessary to develop projects, and relied on companies in the infrastructure/construction industry to provide those skills.

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