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Consultants snap-up two thirds of Govt's $66m Light Rail spend

Author
Jason Walls,
Publish Date
Fri, 14 Oct 2022, 1:29PM
An Auckland Transport artist impression of light rail on Dominion Road. Photo / Supplied
An Auckland Transport artist impression of light rail on Dominion Road. Photo / Supplied

Consultants snap-up two thirds of Govt's $66m Light Rail spend

Author
Jason Walls,
Publish Date
Fri, 14 Oct 2022, 1:29PM

More than two-thirds of the money spent on Auckland's light rail project has so far gone to consultants – while not a cent has yet been spent on construction.

Written questions to Transport Minister Michael Wood reveal that to date, almost $66 million has been spent on the Auckland transport project.

Of that $66 million, $44 million – or roughly 66 percent – was spent on "expert consultants".  

National's Transport, and Public Services Sector, spokesman Simeon Brown said the figures show "consultants are laughing all the way to the bank" under this Government.

"Labour promised in 2017 that there would be light rail from Mt Roskill to the CBD by 2021," he said.

"We're now in 2022 and we are yet to see even one metre of track. All we have seen is an endless merry-go-round of working groups and spin."

But Public Services Minister Chris Hipkins has pushed back on Brown's argument.

"Our country's infrastructure needs upgrading. It should concern New Zealanders that National would rather not get the right people in to get the job done."

He said there will always be a place for contractors with specialist skills in big transport projects.

For example, he said civil engineers, environmental planning and urban design, quantity surveyors, scheduling, modelling and economists are all needed – "and that's often at the front end before shovels even get in the ground".

"If we are investing in these projects we want them to be done right so that New Zealanders get the best value for their money."

Of the $65.9 million spent on Light Rail to date, $7.4 million was for "Ministry of Transport costs", while another $14.5 was for Partner agency costs (Waka Kotahi, Kainga Ora, Auckland Council & Transport) and Office administration.

The remaining $44 million was for consultants.

Light rail from the central city to the airport is a flagship policy of the Labour Government costed at $14.6 billion.

It was one of then-Opposition leader Jacinda Ardern's major campaign promises ahead of the 2017 election.

Since then, however, the project has hit numerous speed bumps.

Ahead of the 2020 election, Cabinet failed to reach agreement on a way forward for the project, after strong objections from New Zealand First.

But after the election – and after NZ First failed to garner enough support to return to Parliament – the new majority Labour Government declared the project was back on track.

Since then, the Government has been working to progress the project.

A Minister of Transport spokesman says the next phase is the detailed planning and consenting, which includes refining routes and costs, and finalising the delivery and funding.

It is anticipated that the planning and consenting phase will take 2-3 years and construction will then take 6-8 years.

Although Brown said he understands the need for consultants in the early stages of the project, $44 million without a shovel in the ground is not good enough.

This is not the first time he's criticised the Government.

Late last year, a Newstalk ZB investigation revealed the Government spent close to a billion dollars on contractors and consultants in the 2020/21 financial year.

Hipkins today attacked National, saying the money for consultants was needed due to the "damage" the previous Government caused.

"We saw it under the last nine years of National – underinvestment in our hospitals, schools and roads means we are now playing catch up."

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