28 June 2002
FFNZ: National Land Transport Programme Reflects Political Priorities
Transfund's National Land Transport Programme (NLTP) reflects political trade-offs rather than focusing on the needs of
the economy, says Murray Taggart, Federated Farmers' Meat and Fibre Chairman.
"While the funding allocation framework acknowledges that benefit/cost ratio (BCR) and efficiency remain important
evaluation tools for roading and non-roading projects, there is a much stronger emphasis on projects which contribute to
the government's funding priorities," said Mr Taggart.
"This raises the bizarre situation of road users contributing significantly more funding to roading alternatives such as
public transport and the promotion of walking and cycling which clearly signals a move towards pork barrel politics to
buy the urban vote at the expense of the productive sector. Already a considerable amount of revenue from road user
charges and fuel excise tax flows into the Government's consolidated account.
"Funding of land transport should reflect the careful consideration of the BCR with an efficient transport sector being
critically important. Undermining these important principles through specific funding allocated to promoting walking and
cycling, and pet projects in terms of regional development which may not stand up against more efficient roading
options, is a backward step and will not deliver a "more balanced range of transport options" as the Government
suggests.
The NLTP reflects a move back towards pre-1984 thinking when Government exposed New Zealand taxpayers to the vagaries of
picking winners. The NLTP again highlights the Government's dangerous return to a politically driven "we know best"
mentality.
ENDS