Wednesday, December 16, 2009

Transmission Gully subsidy to Wellington

$3 each for a $20 a user road.

Yep, that's what the Transmission Gully boondoggle will cost. Each user will pay no more than $3, you could argue probably another 65c in fuel tax/RUC for driving 22km along the road.

So that's $3.60 per user.

How much of Transmission Gully will the toll recover? $200 million out of $1.2 billion. The extra 65c will only recover proportionately another 22% more (generously rounding up) so that means $244 million of Transmission Gully will be paid for by users.

The rest? Comes from motorists using other roads, across the country and indirectly, taxpayers who wont be charged interest on the capital put into this expensive road.

So go on, thank the government for pouring over $950 million in subsidies to road users for Transmission Gully. Then again, given the $500 million being poured in subsidies to rail commuters in Auckland, it just shows you how much interest there is in economic efficiency and user pays by this Labour government.

Yes I know the report says $2, but really we're just arguing about how bad it is aren't we?

How many of those who damned Labour for wasting money are now hopping on their new cargo cult?

1 comment:

Anonymous said...

For once we agree, long distance commuters are heavily subsidized and probably in today's carbon usage terms, even more of a burden on the taxpayer.
Noted in the TV coverage were many B-Trains. Although Road Transport is convenient, Surely in the future, in ETS terms it is a relatively soon-to-be-outdated form of freight transportation? (I have yet to look at NZ's ETS contribution)

Rationale