Govt's $21 billion bet on cheap petrol

It is economically irresponsible to continue to invest in new roading infrastructure while fuel prices push new heights, said the Green Party today.

“Recent rises in petrol prices foreshadow a much longer-term trend of increasing oil prices. It’s simply irresponsible for this Government to be investing so heavily in new roading infrastructure instead of more resilient alternatives like light rail and bus lanes,” said Green Party Co-Leader Dr Russel Norman.

“The Key Government has outlined an additional $21 billion of investment in roads after 2012. The same National Infrastructure Plan lists only a further $0.7 billion investment in alternatives to roads.

“Such a one-sided investment approach to managing our future mobility is economic mismanagement. There is no other way to describe it.

“For the person on the street, this will mean they’ll have next to no alternative options for getting to work when oil prices become unaffordable for everyday transport,” said Dr Norman. “And this could happen very soon.”

This week, Shell CEO Peter Voser joined a growing chorus of voices announcing the end to cheap oil. When asked about whether the theory of “peak oil” was dead — the theory that oil production will no longer be able to keep up with demand — Mr Voser said “I think what is dead is cheap oil.”

“This Government is placing all their bets on electric car technology to keep us moving in the future. But the new cars are expensive, their uptake will be slow, and they don’t solve the problem of congestion or where the power will come from,” said Dr Norman.

In response to a Written Question, Transport Minister Steven Joyce has estimated that there will be 300 light electric motor vehicles in the fleet by July 2013. By 2020, this number is estimated to reach 5% of the vehicle fleet according to the New Zealand Energy Strategy.

“In the short-to-medium term, we should be investing in proven technology like light rail, busways, and better walking and cycling facilities. We need to move smarter and build resilience into our transport systems.”

“This Government is lumbering future generations with debt for an investment in a technology that’s changed little since the 1950s,” said Dr Norman.

Link to the National Infrastructure Plan:
http://www.infrastructure.govt.nz/plan/mar2010/nip-mar10.pdf

Link to the New York Times coverage of Peter Voser:
http://blogs.wsj.com/dispatch/2010/03/04/big-oil-executive-talks-about-electric-cars/