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 that he can deliver light rail in Auckland; if so why?Hon MICHAEL WOOD (Minister of Transport): Yes I am confident that we will deliver light rail because the indicative business case has provided a sound analytical base on which to make informed decisions; because an enduring position and agreement between the Auckland Council the Crown and mana whenua has been established; because the governance arrangements that have been established will provide for appropriate Crown oversight and will incorporate the necessary skills to make the project a success; because Ministers have agreed to establish a competency-based board that brings the necessary skills together to deliver this city-shaping project. And finally I would say that I have great confidence because this Government is utterly determined that after 50 years of successive local and central government administrations kicking this issue of a proper transport system for Auckland down the road we have decided that it is time to act. I'd finish by quoting the comments of Infrastructure New Zealand on this issue who said that We have to remember too that what's good for Auckland is good for New Zealand. We commend the Government for this approach but we're mindful that things can … change over successive terms of Government. We need to step aside from politics and just get this done." We will and I invite the Opposition to engage in a constructive and mature conversation about it.Simeon Brown: Does he stand by his statement: "Early works will commence by 2023."; and if so how can New Zealanders believe him given the Government promised this project would be completed by 2021 yet hasn't even started construction?Hon MICHAEL WOOD: It's well-known and understood by New Zealanders who have observed this project that there was not consensus between the parties of the Government in the previous term and therefore it didn't proceed. There is consensus between the parties of Government in this term of Government and within one year of this Government recommencing this project an indicative business case has been produced Cabinet has decided on the preferred option and we have advice on the table that supports the fact that we will be able to begin those works in 2023.Simeon Brown: In what year will the final business case be completed by?Hon MICHAEL WOOD: I trust that the member has read the indicative business case and the supporting documents that have been released. It is our expectation that a detailed business case will be before Cabinet by approximately the end of 2023.Simon Court: Does the Minister agree with Matt Lowrie of Greater Auckland that had he chosen the cheaper surface light rail option there would be enough money left over to build another rail link to the north-west to Westgate; and if not why not?Hon MICHAEL WOOD: I thank the member for his question. I also thank the member for his constructive engagement in this issue over time albeit that we don't agree on all aspects of the proposal. I disagree with Mr Lowrie on this point because ultimately what we have determined we need to do in Auckland our largest city is to finally develop a proper linked up high-capacity transport system. The challenges with the surface light rail option favoured by Mr Lowrie and some others despite the benefits that that offered in terms of cost were ultimately that it would not provide sufficient capacity into the long term. We don't want to do what Auckland did in the 1950s and under-build a harbour bridge that then had to be expanded within 10 years.Secondly and this is a very important point the Government's announcements did not just relate to building a light rail line along the city centre to Māngere corridor. They're about futureproofing the network with a full network approach including a new public transport - centred connection to the North Shore and if we want to have the capacity to link those two systems together tunnelling is a necessity.Simeon Brown: Can he confirm that the indicative business case states that the cost of light rail could be as high as $24 billion; and if so does he think that a billion dollars for every kilometre of light rail is cost effective?Hon MICHAEL WOOD: No the indicative business case does not quote that figure. The member is extrapolating as I believe another journalist has extrapolated. It is important to have some clarity around the cost of the project. The 2021 net present value estimate for the project is $10.3 billion. The $14.6 billion P50 price that has been quoted is the inflated cost over the lifetime of the project that builds in significant contingency.Simeon Brown: What will he have delivered more of by the end of this parliamentary term: metres of light rail or metres of press releases talking about light rail?SPEAKER: Order! No."