Transport Minister Simeon Brown has confirmed estimates given to him by officials suggest National's promised transport projects could potentially cost billions more than first indicated during the election.
However, the minister told Q+A that re-scoping parts of projects, the new fast-tracking consenting process, and the use of a "range of funding and financing tools" meant he was confident the Government could deliver on its promises.
Brown said: "The reality is there has been cost increases in transport infrastructure. Part of that is because there's been scope increases. Part of it's because because it's taking longer and harder to consent things in New Zealand.
"The consent conditions that are being imposed are adding significant cost. That's why, as a Government, we're going through all of those issues to say … we actually need to get it back to what is the core purpose of that infrastructure that we're trying to do."
The Transport Minister said there had been "a number of things that I've been presented advice over which has been causing significant cost increases, in which we as a government have focused on dealing with."
The Government has announced it will spend over $20 billion to "get transport back on track", with some funding coming from hikes to vehicle registrations and taxes on fuel. (Source: 1News)
He said some consent conditions were "absurd" and said the Government's new fast-track consenting process would be "critical" to reducing costs.
"There is a seawall being built between Petone and Wellington, where one of the consent conditions is for the NZTA to build underwater sea pyramids, as part of that.
"On the Mt Messenger Bypass, NZTA has been being required to spend $750,000 in perpetuity on pest control in thousands of hectares of land they don't own".
Pre-election costings questioned
NZTA officials advised that 17 projects proposed by National could cost more than twice what the party said before the election, the New Zealand Herald has reported.
Officials reportedly estimated roading and public transport projects could collectively cost between $30 billion and $46 billion to build.
Brown said the lowest range estimate given to him by officials indicated a package of projects would cost around $30 billion. The plan National brought to the election was costed at around $24 billion, leaving a $6 billion gap.
"The estimate that we took to the election was around $24 billion. The lower range of what the NZTA has suggested, based on a bunch of assumptions, was around $30 billion."
After repeated questioning on the cost estimates, the Transport Minister said the conversation was "driving at the wrong element." He said the Government remained confident it would deliver on transport projects committed to.
"What we've said is we need a range of funding and financing opportunities for these projects, and we're going to go through the scope of these projects, but we're committed to delivering them."
Some of the project cost estimates used by National during the election dated as far back as 2014, and didn't account for an adjusted rate of inflation. The party was accused by Labour of under-cooking its cost estimates during the campaign.
Earlier this month, the Government confirmed it wanted to splash out billions for 15 new highway projects as part of re-launching its Roads of National Significance programme.
Roads of National Significance was a program of highway building started by the previous National government, under John Key, which kicked off projects like the Waikato Expressway, Wellington's Transmission Gully, and Waterview Tunnels in Auckland.
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