Blue Jackie: Estimates Debate — In Committee 
Blue Jackie: Estimates Debate — In Committee 
[Volume:665;Page:12790] 
Dr JACKIE BLUE (National) 
: 
 Tena koe Mr Chairperson. Tena tatou e te Whare. I congratulate the Minister of Transport on the leadership he is providing in the transport area. The Government is serious about unclogging the arteries of our economy to create jobs and growth with better roads broadband rail and electricity networks. Jobs and growth are essential if New Zealand and New Zealanders are to get ahead. Development of infrastructure is central to lifting New Zealand’s productivity and improving future economic growth. The Government is very focused on that area. The Government is spending $6 billion on infrastructure projects: specifically in respect of the transport area there is a $500-million upgrade of Auckland rail and a $250-million upgrade for the wider rail network and rolling stock. There is also $10.7 billion over 10 years for State highways. State highways account for 50 percent of road use in New Zealand; therefore an advanced State highway system is essential to maintain effective linkages throughout the country. 
The money that the Government has committed reflects how important infrastructure is to the Government’s wider economic policy programme and New Zealand’s longer-term economic prospects. As an example work on the Victoria Park tunnel began last November a year ahead of schedule. Without extra funding that project might never have got off the ground and neither would the jobs or economic benefits it is bringing. More recently the Minister along with the Prime Minister opened the Manukau Harbour Crossing 7 months ahead of schedule. The crossing is part of the Auckland western ring route one of the seven roads of national significance announced in March last year. 
The Government’s $1billion boost to State highway funding has provided a secure funding pipeline which has given contractors the confidence to continue investing in people and machinery and to complete projects more quickly. Earlier this month the New Zealand Transport Agency announced that the southern half of the Newmarket viaduct on State Highway 1 will also open 6 months ahead of schedule. 
High-calibre infrastructure matters because it supports productivity and economic competitiveness. An important spin-off from this commitment is that in the deepest and most coordinated global recession since the 1930s effective investment in productive infrastructure has supported many thousands of jobs across the country. KiwiRail is a subsidiary of the New Zealand Railways Corporation. It has been a priority for this Government to make KiwiRail productive. During its last year in office the previous Labour Government spent more than $1 billion on KiwiRail an investment that plummeted in value. The Government is committed to turning KiwiRail around. 
In Budget 2010 the Government invested $250 million to support KiwiRail and its plan to ensure that KiwiRail can stand on its own two feet financially. Improving rail transport will be important in moving people and freight around. The $250 million in Budget 2010 builds on previous commitments to Auckland and Wellington commuter rail and that includes the half a billion when appropriated for KiwiRail to buy electric trains for Auckland. Efficient and effective transport links are important drivers of growth. We are committed to making economically sensible decisions and making our investments in rail deliver for taxpayers and the economy. Investing to support KiwiRail will help improve New Zealand’s economic productivity and put us on the path to faster growth. Our investment reflects the fact that the amount of freight being moved on New Zealand’s transport network will double by 2040 and all transport modes need to become more efficient to meet that demand. Achieving that will be challenging and it will require the support of all stakeholders including the Government KiwiRail customers unions and regional councils. 
Auckland is vital to the economy of New Zealand. It has one-third of New Zealand’s population and it is a major contributor to our economy. Unfortunately it has suffered for far too long with bottlenecks delays and uncompleted roading networks. The Government is creating a new transport council-controlled organisation in Auckland called Auckland Transport. It will enhance the current nine Auckland transport entities and will be responsible for all local authority transport delivery functions in Auckland including local roads and public transport. Thank you. 
Vote agreed to.