Bridge over troubled fiscal waters
By local democracy reporter Jonathan Leask:
Ashburton mayor Neil Brown remains confident that the town's second bridge won’t fall into what could be a $24 billion fiscal hole.
The NZ Herald reported a Waka Kotahi NZ Transport Agency (NZTA) document prepared in November included updated cost
estimates for various transport projects and shows a potential fiscal hole of up to $24 billion.
NZTA estimated 17 major projects, including Ashburton’s second bridge, could collectively cost between $30.9b and $46.6b, but National had budgeted only $22.2b for the same projects.
NZTA outlined in the document the costings were preliminary and based on the “latest known project scope”.
The business case for Ashburton’s second bridge came in at $113m but NZTA’s estimates place the project between $100m and $200m.
There is bound to be some variance to the business case prepared in 2022 due to inflation, but Brown couldn’t understand the estimate being as high as $200m.
“This bridge is needed and if those prices are escalating as NZTA says, they need to look at their costs that are way higher than inflation.
“Traffic management may be one place to start.”
When now Prime Minister Christopher Luxon was on the election campaign trail last year, he stood in the Ashburton Events Centre in April and pledged construction on the second bridge would start in his party's first term in government.
The possibility of a cash shortfall casts some doubt on delivering on that pledge, but the mayor remains very confident they will.
“They just need to sort the funding.
“There is always a possibility it could fall into a fiscal hole but the bridge is ready to go, why delay it and have those costs further increase.”
It is all conjecture until the Government releases its revised policy, Brown said.
Transport Minister Simeon Brown is finalising the revised draft of the Government Policy Statement on land transport as part of the coalition Government’s 100-day plan.
“The GPS will outline the Government’s priorities across transport, including how projects will be funded.”
The minister declined to comment further on project details, funding, and what projects may be prioritised, deprioritised or even cancelled ahead of the draft policy announcement.
Rangitata MP James Meager said Ashburton’s second bridge remains a high priority.
“Escalating construction and project costs are a concern, which is why it's so important we get started on key infrastructure projects as soon as possible.
“I have complete confidence that we will meet our commitment to start construction on the new bridge in our first term and continue to work closely with the Minister's office to ensure that happens."
Labour’s transport spokesperson, Tangi Utikere, said it was "only a matter of time before the Government would be caught out by the numbers they used during the election".
"NZTA’s figure not only proves Christopher Luxon was not honest about the books in his State of the Nation speech, it also shows the lengths they are going to save face over tax cuts.
"I implore Simeon Brown to uphold his promises to Ashburton."
*LDR is local body journalism co-funded by RNZ and NZ On Air.
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Funerals can cost as much as $22,000 and the planning can be stressful especially at a time when loved ones are grieving. Some New Zealanders are re-imagining funerals by making their own coffin or having a relaxed ceremony at home. Would you want a less traditional funeral? Share your thoughts below.
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13.8% No
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Ashburton’s old library sold
By local democracy reporter Jonathan Leask:
The old Ashburton Public Library building has sold, but what that means for ratepayers remains under wraps.
How much it sold for, who the new owners are, and what their plans are for the site remain sealed for now.
The building, on the corner of State Highway 1 and Havelock St, was home to the Ashburton library for nearly 60 years.
Ashburton District Council chief executive Hamish Riach said there were three offers on the property and the settlement date is May 10.
“The purchase price remains confidential at this stage.
“The new owner has asked for anonymity until they are ready to announce their plans for the site, and we will respect that.”
The funds from the sale of the old library are planned to be put towards paying off the construction of Te Whare Whakatere, the new library and civic centre, offsetting the impact on ratepayers.
The council also planned to sell the old administration building site but a decision has not yet been made, Riach said.
“The council is looking to conclude the long-term plan process before making that decision.”
The final build cost of Te Whare Whakatere is yet to be confirmed.
“Once that is confirmed we will advise publicly,” Riach said.
Riach previously stated the final cost would be known after the “resolution of all matters between the council and construction and design contractors”.
Initially budgeted at $56.7m, before its completion the council signalled an overrun in the region of 10%.
The project also received $20m from the government’s shovel-ready infrastructure fund.
While the plans for the old library site remain unknown, the fountain on the corner of the site will move to the Tinwald Domain.
Business support group manager Leanne Macdonald said the fountain is on the same title of land as the library and the council has been talking with the family that donated it about its future once the library was sold.
“The council is currently working with a local contractor to build a drinking fountain beside the playground at the Tinwald Domain and some parts of the library fountain, including the fish, will now form part of the new fountain.
“We think this is a great way to preserve a slice of its special history.”
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