Transport Ministry warns of budget blowout

The Briefing to the Incoming Minister of Transport shows that the existing transport funding shortfall is likely to grow massively if oil prices are high, the Green Party said today.

"The Briefing to the Incoming Minister of Transport shows heavy spending on new motorways is a poor investment in New Zealand's future," said Green Party Transport spokesperson Julie Anne Genter.

"If oil prices remain high and economic growth is low, which is highly likely, we will see a massive blowout in the transport budget."

Data in the Briefing to the Incoming Minister of Transport shows that over the past few years actual transport expenditure has been exceeding revenue from petrol taxes and road user charges, and that this shortfall is likely to get worse with high oil prices and slow economic growth.

"The gap between transport revenue and planned expenditure could grow to around $1 billion per year by 2025," said Ms Genter.

"As oil prices rise, people turn to buses, trains, walking and cycling, but this Government is planning to blow the budget on uneconomic motorways.

"The Green Party supports an urgent reprioritisation of new motorway funding to better buses and trains, and safer walking and cycling.

"A smart green transport plan will help New Zealanders get where they need to go, be better for our economy, and save us all money," said Ms Genter.