9. Question No. 9—TransportSIMEON BROWN (National—Pakuranga) to the Minister of TransportQuestion No. 9—Transport9. SIMEON BROWN (National—Pakuranga) to the Minister of Transport: Does he have confidence taxpayers are getting value for money with Government transport spending; if so why?Hon MICHAEL WOOD (Minister of Transport): Yes across over $5 billion of annual expenditure in the transport system I believe that there is significant value for money for New Zealanders. Some recent examples include the Maintaining International Air Connectivity scheme which has enabled nearly $19 billion of New Zealand exports to get to markets. The opening of stage 1 of the Eastern Busway which is providing the people of Pakuranga with frequent and reliable public transport services for the first time and the reopening of the Napier to Wairoa rail line which has taken hundreds of logging trucks off regional roads. While not every decision about the use of taxpayer money has or will always meet my expectations particularly given the devolved nature of decision making to Crown agencies and State-owned enterprises I will continue to ensure where I have responsibility that the spend of taxpayer money is responsible and proportionate and should at all times consider what is good value for money.Simeon Brown: What is his response to Treasury's advice regarding Auckland light rail that We have low confidence that these benefits will be realised resulting in poor public value."; and does he think spending up to $29.2 billion for light rail is justifiable to taxpayers?Hon MICHAEL WOOD: I think the member needs to read the comments in the full context of Treasury's advice on this project including Treasury's gateway review of the Auckland light rail unit's business case which came through with very positive advice for the Government. I think the member also has to be a little careful with the figures that he is using. The cost of the Auckland light rail project as assessed by the Auckland light rail unit is $10.4 billion at net present value; $14.6 billion at an inflated value. The figure that the member is using is simply taking those figures reducing by 50 percent to get a possible lowest cost and increasing by 100 percent to get a possible outlying cost—those are not actually projections that are based on costings that have been done by the unit.Simeon Brown: When Kiwis are facing a cost of living crisis does the Minister think it is acceptable to spend up to $29.2 billion on his Auckland light rail project at a cost of almost $16000 per New Zealand household?SPEAKER: Order! Before the member answers I'm going to give the member one more chance to ask the question in a way that's in order.Simeon Brown: Does the Minister think it is acceptable to spend up to $29.2 billion on his Auckland light rail project at a cost of almost $16000 per New Zealand household? Hon MICHAEL WOOD: I reject the premise of the member's question. Simon Court: Does he agree with Treasury on light rail that "There is an emerging risk that the costs will be significantly higher than the previous estimates" and can he guarantee that the benefits of light rail will exceed the costs?Hon MICHAEL WOOD: I always value the advice provided by Government departments including Treasury but no I don't always agree with them and the job of Ministers is to consider that advice and then to make considered decisions and that's what we've done in this case. I note that the formal advice that was presented to Cabinet through the indicative business case provided by the light rail unit which went through a Treasury gateway process showed that all of the options before us—including the one that we have selected—have positive strategic cases positive economic cases a positive business case and a positive benefit-cost ratio. Simon Court: Will he rule out an annual thousand-dollar tax on properties along the light rail route as proposed in the light rail indicative business case? Hon MICHAEL WOOD: The light rail indicative business case does not make a proposal of that kind and no such proposal is before the Government. The light rail business case and report to the Government suggests that value capture can be an important part of how the project is funding—something that has received support for example from Simon Bridges across the House. Further work will have to be done to develop a scheme that is fair and equitable. Simeon Brown: What value have Aucklanders received from the $50 million he spent on the Auckland cycling bridge which he then cancelled and is he confident this doesn't amount to wasteful spending? Hon MICHAEL WOOD: The Northern Pathway project as the member is well aware has been reallocated so that funding allocated to that project is going to a range of important projects including stage 2 of the Eastern Busway. To the extent that expenditure was spent that has not resulted in the particular outcome there that is a matter of some disappointment but we move forward to deliver the outcomes that Aucklanders need—outcomes that were ignored for many many years under that previous Government. Simeon Brown: What value have Wellingtonians received from the $35 million spent on consultants for Let's Get Wellington Moving when only $253000 has been spent on actual construction? Hon MICHAEL WOOD: Wellington was let down for too many years including by a former Prime Minister who wrote it off as "a dying city". Our Government disagrees with that assessment and is finally making the investments in a transport system fit for a first world thriving capital city. Anyone who actually knows anything about how major transport programmes work including how one might go about establishing a mass rapid transit system will understand that before construction can occur there needs to be investment in design planning and consenting and that is what we are getting on with."