Rail kitty cash goes to consultants

By BERNARD ORSMAN

Lawyers and consultants are pocketing most of the $1.2 million of extra revenue Auckland City ratepayers were asked to "save up" this year for future transport services.

Councillors and bureaucrats have dipped into a special kitty for transport projects to help pay the spiralling cost of consultants and lawyers working on the deal to pay Tranz Rail $65 million for access to rail corridors.

The budget for legal fees and technical advice on the Tranz Rail deal is expected to be $4.2 million by December, of which Auckland City's share is $1 million.

Auckland household rates rose 1.9 per cent this year to provide $1.2 million towards a dedicated transport fund forecast to be worth $21.6 million in three years.

Finance committee chairwoman Kay McKelvie said at the time that the rates increase ensured "there will be money available when the projects are ready to be implemented."

Transport committee chairwoman Catherine Harland called the fund a "saving-up approach."

In the latest issue of the council's news sheet, City Scene, Kay McKelvie said the dedicated fund was there "in expectation of costs associated with planning and implementation of a regional rapid transit system."

Kay McKelvie said yesterday that the council was not raiding the fund.

"We have spent some money to get the rail corridor. It is no good saving for all the rolling stock if we have got nowhere to put them."

She said the spending was a small part of the fund, which had accumulated to about $10 million from $1.2 million in rates revenue, a $5 million airport share dividend and a $3.5 million windfall in extra revenue.

Meanwhile, Infrastructure Auckland and Transfund, the roading and public transport funding agency, are due to say this week whether they will contribute towards the Tranz Rail deal to open Auckland rail corridors for a $1 billion rapid transit scheme.

Infrastructure Auckland is expected to make a major grant tomorrow towards the scheme to signal to Transfund and the Government that the region is committed to the deal.

Transfund, which has real problems with the deal and whether it fits within its funding criteria, will consider the matter on Thursday.

The region's councils have asked Infrastructure Auckland for $40 million and Transfund for $35 million in the hope that combined they will get $65 million. Once the corridor lease is secured, the councils will have to decide what form of transport they want and how to pay for the dream rapid transit scheme.

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