01 July 2008

Government announces annual transport funding programme

Land Transport New Zealand (the government's land transport funding agency until now) released its final National Land Transport Programme outlining how it intends to spend your fuel tax, motor vehicle registration and licensing fees, and road user charges for the next financial year.

From 1 July it merges with Transit New Zealand, so that the funding agency gets to fund its own activities - whilst local authorities get to compete with that. Yes, Labour has reversed some of the transport reforms of the 1990s which ensured transparent competitive bidding for transport money. After all who needs to ensure value for money, or accountability when you can have one big behemoth of a bureaucracy.

$2.439 billion from the National Land Transport Fund, plus around $220 million extra from taxpayers. Yes Labour is spending your motoring taxes on transport.

$908 million is for routine maintenance of roads, the administration cost of the relevant agencies (which isn't small), the Police policing the roads (see this is managed separately but is very hard to get accountability for), and research and development associated with managing road networks.

Another $402 million is for periodic and preventive maintenance on roads, which is about renewing the whole surface (and includes bridges and the like). The precision of spending on maintenance is important and better than most countries (certainly better than the USA). Even so, Chris Olsen Chief Executive of Roading New Zealand (an industry association of contractors) says the maintenance spend is inadequate. Certainly it is at an efficient level, but it would be interesting to know if local authorities and Transit are concerned. The funding system should avoid underspending on maintenance, if politics is kept out of it.

Beyond that we have new construction with just over $1 billion being spent on roads, most on state highways. My only question is whether local roads are getting enough, especially since local authorities have to get around 45% of funds for new local roads from hard stretched ratepayers. There is a case for local road improvements being funded by road users, but ensuring local authorities are accountable for this is critical, and it is one reason I supported requiring local authorities to put their core arterial and collector networks into roading companies.

The Greens complain that not enough of road users' money goes to subsidise public transport, this year $325 million is going into it, which is nearly ten times the amount in nominal terms compared to when Labour first was elected, and $86 million more than last year. It is $100 million more than what is going into upgrading local roads - remember local roads carry half of all traffic movements and comprise over 80% of the network, but public transport's share of journeys is less than 10% nationwide.

On top of that another $49 million is to be spent on "community focused activities" (encouraging people to change travel behaviour), walking and cycling, and subsidising rail and sea freight. All activities that don't actually pay a cent into the National Land Transport Fund.

Now one thing politicians like to do with this announcement is claim that they are personally responsible for the decisions of a statutorily independent board for funding pet projects.

So it's worth having a look at this enormous document to see what really is happening with a handful of high profile projects. I thought I'd look at:

SH20-SH18 "Western Ring Road" in Auckland
Kopu Bridge replacement approaching the Coromandel Peninsula
Transmission Gully in Wellington

There are bound to be others that interest people, but well these all have a profile, some of which is undeserved:

Western Ring Route: Five sections of this route need completion, and money has been allocated to complete four of these. This will mean the Upper Harbour Motorway is finally completed allowing fast efficient trips between the North Shore and West Auckland bypassing Hobsonville. It also will mean a continuous motorway from the Southern Motorway at Manukau through to Mt Roskill, with a second Mangere Bridge relieving the bottleneck north of the airport. However it does still mean a problem between Mt Roskill and SH16 - the Waterview connection. The PM wants a massive tunnel to be built on this section (the only part of the route proposed for tunnelling curiously enough), when it could just be built on the level with overbridges like all of other sections. $5.5 million is to be spent investigating this further. All in all 4 out of 5 for the Western Ring Route, the parts worth building are being progressed at a fast pace. However there really has to be some sober thinking about the Waterview connection. Current estimates have it costing more than all of the other segments of the road built combined (and that is six individual projects), so one has to ask why this part has to be goldplated and greenplated?

Kopu bridge: $100,000 of funding to complete design. Nothing about starting construction. Hmmmm. Surely a 2 out of 5 for that, perhaps there are RMA reasons? Perhaps it too has become too expensive?

Transmission Gully: Well that $1 billion folly will get $1 million spent on completing the investigation phase, but more importantly $13 million on detailed design in the next year. That is serious money for design alone, but the total design cost is $41 million. That is more than the total road budget for some councils. So big money ploughing into it, but resource consents not yet achieved or enough property purchases. So maybe 3 out of 5 for progress, but it is an enormous waste of money.

It would be nice to think National will change things, will refocus funding towards projects that are economically efficient, less money on public transport just because it is "nice to do". It would be more nice for the Nats to change things to be more commercial, less political and seek the funding provision and management of roads to be decided based on what users want, not what politicians think is the populist "road of the year".

The Nats once did have such a policy - there is no good reason not to at least go back to that.

Police truce with mafia

This is how John Bolton, former US Ambassador to the UN, described the Bush Administration deal with North Korea in the Daily Telegraph today.

He effectively says the collapse of the concrete tower, dramatically presented to television is not as significant as the collapse of the Bush Administration's foreign policy:

"North Korea has violated every significant agreement ever reached with the United States, and all indications are that the North is again following its traditional game plan. It is quite adept at pledging to give up its nuclear programme, having done so several times in the past fifteen years. Not once, however, has it actually taken decisive steps to do so. Indeed, quite the opposite."

His article describes how North Korea has played the West as a fool, time and time again. There is no evidence that it has stopped any activities whatsoever, its announcement that it has nuclear weapons and the subsequent deal to NOT allow full inspection of its facilities and NOT dismantle its nuclear weapon stocks shows how North Korea continues to play.

North Korea had transferred nuclear technology to Syria, which both deny, even though the ample evidence that the infrastructure destroyed by Israel in Syria was almost identical in layout to the Yongbyon facility, and that the lead North Korean engineer working at Yongbyon had visited the facilities in Syria. Israel thankfully destroyed this facility, but don't expect the so-called peace movement to be grateful - many of them will only start to be concerned if a nuclear weapon goes off in Tel Aviv, but even then I'm sure that would be "Israel's fault".

Bolton warns:

"Europeans appear overwhelmingly to favour the election this November of Senator Obama, in many respects because his foreign policy is so congenial to their tastes. It may be comforting now to think that the unilateralist cowboys are about to retire to their ranches. It will be less so when we are all confronted, as we will be inevitably, with the continuing reality of Iranian, North Korean -- and other -- nuclear weapons programs."

There isn't an easy solution to North Korea. There is no military option as it would provoke an attack of devastating proportions. However, there should be no negotiation.

North Korea has only learnt through deterrence to not attack the South or Japan, since 1953, although it has repeatedly engaged in terrorist and espionage attacks. It is one of the most evil regimes on the planet - negotiating with child torturing scum is not likely to produce an outcome morally superior to deterring it with the trigger threat of annihilation. North Korea after all has no compunction whatsoever about letting around a million of its citizens starve to death, about having tens of thousands of men women and children be slave labour in gulags and executing those who try to leave. To think that a regime capable of such profound evil is willing to negotiate an end to having the ultimate means of threatening the world, is naive. North Korea is a regime we will have to wait out for death or a coup - meanwhile, let Kim Jong Il know that if he dares start a war, North Korea will suffer massive retaliation and this time South Korean, US and allied forces will go all the way to the Yalu River - and complete the job.

Bolger the sellout

As was widely expected the NZ Herald has reported Jim Bolger has become Chairman (I refuse to call someone who leads a meeting a piece of furniture) of Kiwirail. I shouldn't be surprised though, after all he was in the Muldoon Cabinet that orchestrated Think Big, he campaigned in 1987 against the reforms of Roger Douglas, campaigned in 1990 on getting rid of the National Super Surcharge and broke that promise, and opposed Winston Peters then made him Treasurer. He'd call it pragmatic, it's simply unprincipled. He doesn't need to become Chairman of the Clark government's latest acquisition, but Dr Cullen clearly loves it "Jim, we are lucky to have someone with your skills and your dedication to New Zealand on board with us,". Yep Bolger knows how to run a railway, after all he's been part of a government that ran it as a nationalised department, part of one that privatised it. Brilliant.

Dr Cullen also said "By bringing our rail system back into public ownership - following the buyback of the tracks four years ago - we will spare future generations from subsidising a private rail operator" Well we could just NOT subsidise them at all Michael, thought of that one?

Meanwhile Helen Clark has shown her intellectual might in saying "One locomotive can pull the equivalent freight of 65 trucks," Yet with all that, the 65 trucks can run without subsidy but the train can't, because Helen, the train needs a duplicate piece of infrastructure, and those wagons are nigh useless without being hooked up together with that locomotive, whereas 65 trucks can do 65 DIFFERENT trips, or the same trip - funny how there aren't that many freight consignments requiring lots of truckloads carrying the same goods at the same time to the same place.

Of course the Kiwirail board had to include the token unionist, Ross Wilson on its board. Look forward to Jim Bolger asking future governments for more of your money to prop up Kiwirail -

Maybe it should have a new slogan

"Your railway your money subsidising their freight and they're laughing"

Tunguska a century ago

I remember reading books when I was a child about the mysterious explosion, comet, meteor or whatever it was, that hit Siberia exactly 100 years ago today. Tunguska is now widely acknowledged by scientists to have been the site of meteoroid explosion or comet fragment.

The BBC has a good write up about it here.

"Some 80 million trees were flattened over an area of 2,000 square km (800 square miles) near the Tunguska River. The blast was 1,000 times more powerful than the atomic bombs dropped on Hiroshima and Nagasaki and generated a shock wave that knocked people to the ground 60km from the epicentre."

It took 13 years before any outsider is known to have actually visited the site, and another six years for a formal expedition to arrive (remember in 1927 the Soviet government had far more pressing things to do oppressing the masses and changing them into Lenin's new men).

As the article says, had it hit central London, the entire metropolitan area of Greater London would have been razed clear as far out roughly as the M25. It's a reminder that Earth is vulnerable to the flotsam and jetsam of the universe entering its atmosphere. Almost all of that burns up. Here is hoping that those watching the sky can warn us all sufficiently in advance and allow action to be taken - after all, a large object striking the oceans would be far more catastrophic than another one at Tunguska.

Of course there is also much interesting reading on the wiki post.

Mugabe the hero

Yes who is surprised he is attending the African Union summit, among his peers, a prick to piss on. According to the Times:

"He dined at a lavish luncheon given by his Egyptian hosts, hugged heads of state and other diplomats in the corridors and stayed at the Peninsula Hotel, one of the most luxurious in this Red Sea town. “Mr Mugabe is staying there as a courtesy by the Egyptian Government,” a hotel spokesman said."

Nice to see that aid being well spent Egypt - I bet the Bush Administration is highly amused!

At least Kenyan Prime Minister Raila Odinga isn't accepting this charade. He wants Mugabe suspended "until he allows the African Union to facilitate free and fair elections". Italy has withdrawn its envoy from Harare, and calls for all EU countries to withdraw diplomats from Zimbabwe.