New Kiwi Government Scraps $7.4 Billion Transport Plan for Capital

The campaign was criticised for excessive spending on consultants’ fees that ballooned whilst planned infrastructure projects never materialised.
New Kiwi Government Scraps $7.4 Billion Transport Plan for Capital
Lambton Quay in Wellington New Zealand. (Praveen Menon/Reuters)
Jim Birchall
12/19/2023
Updated:
12/19/2023
0:00

A transport plan for New Zealand’s capital, Wellington, that aimed to make strategic improvements in state highways through large-scale projects and invest in mass transit options and better airport connectivity has been rescinded by the new National-led coalition government.

Let’s Get Wellington Moving (LGWM) was a NZ$7.4 billion (US$4.6 billion) campaign that championed large-scale transit initiatives like a second tunnel at Mount Victoria, that connects Wellington City with its eastern Suburbs, and a change of the road layout around the Basin Reserve roundabout to extend the Arras Tunnel, and ease congestion.

LGWM also aimed to decarbonise the city and encourage walking, public transport, cycle lanes, and pedestrianise a main retail and hospitality strip known as “The Golden Mile” that runs from the Embassy Theatre to Parliament.

Central and local government officials and the New Zealand Transport Agency (NZTA) Waka Kotahi issued a joint statement on Dec. 17, that outlined an agreement to dissolve LGWM.

The campaign was criticised in some quarters for excessive spending on consultants’ fees that ballooned whilst planned infrastructure projects have not materialised.

Prime Minister Chris Luxon called the LGWM campaign an “expensive flop.”

“I think Wellingtonians have paid over $160 million on consultants so it was very good, three weeks into our government, to sit down and get to an accommodation with the Wellington City Council and also the Wellington Regional Council,” said Mr. Luxon on Sunday.

A 2nd Chance

In speaking with Morning Report, Housing and Infrastructure Minister Chris Bishop said bureaucracy had stymied the campaign. He added that officials were “exhausted” by the time taken to get approval on shovel-ready projects and expenditure due to LGWM having to seek approval from council and government despite being, at face value, autonomous.

“I there there’s a recognition, frankly, that it’s been a bit of a disaster,” said Mr. Bishop.

New Zealand Prime Minister Christopher Luxon called the 'Let's get Wellington moving' campaign an "expensive flop." (Hagen Hopkins/Getty Images)
New Zealand Prime Minister Christopher Luxon called the 'Let's get Wellington moving' campaign an "expensive flop." (Hagen Hopkins/Getty Images)

He said the new government had created the chance for a reset after a significant amount of time and money had been invested with little progress, adding the government was “extremely committed” to the project.

“It’s a key priority for the National Party and the coalition government,” he said.

Although the LGWM has been dissolved, Mr. Bishop said the government, through NZTA Waka Kotahi, intended to push on with constructing a second Mount Victoria Tunnel (slated for 2026), start works around the Basin Reserve, and continue the revitalisation of the Golden Mile.

According to NZTA Waka Kotahi, the existing tunnel will be kept and provide two lanes for traffic travelling towards the city. The existing pedestrian and cycle path will be removed. A second 700-metre-long tunnel will be built immediately to the north of the existing tunnel, providing two lanes for traffic travelling towards the airport.

Wellington’s Mayor Tory Whanau has been vocal in her opposition to a second Mount Victoria Tunnel as one that allows only for cars and other vehicles. Ms. Whanau thinks that light rail would be a better option for the site and campaigned heavily around implementing mass transit options during her 2022 mayoral bid.

Ms. Whanau acknowledged that it was important for Wellington Council to “work constructively with the new government to deliver the infrastructure that Wellington desperately needs.”

“It is good to have a clear sense of direction from the government and commitment to investing in the infrastructure for our growing population,” she added.

Mr. Luxon said he was comfortable with the decision to tank LGWM.

“I think we’ve got to a very good place.

“I don’t make any apologies because they’re phantom projects, they haven’t been happening.”