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?

Think Big hits Wellington

It seems Rob Muldoon and Bill Birch are back with big road building plans for Wellington's State Highway 1.

The list is enormous, and it is justified based on agglomeration benefits. The same benefits the UK government has long used to justify a whole range of highly borderline rail projects. Quite how agglomeration benefits the economy when it is about a city primarily set up for the state sector is beyond me.

After all it is $2.4 billion we are talking about, around $7000 per Wellingtonian. My back of the envelope estimate is that the net benefits from these projects will be less than $2 billion. So National is going to destroy wealth on a scale akin to the purchase of Kiwirail.

The project are listed in three phases.

Phase 1

Aotea Quay-Ngauranga extra lane: In other words, a subsidy to peak car commuters. After all this section of motorway flows freely the rest of the time. Price it properly and you wouldn't build it. Any chance this lane will be tolled? No. What will be the result on the local Wellington streets that don't quite have the capacity to cope now? Blank out.

Four laning SH1 Peka Peka to Otaki: Four laning of the current highway will make a big difference to safety. Not probably the highest priority though, as the Ngaruawahia Bypass on SH1 north of Hamilton ought to be more important. Still not a bad project, just wonder whether it is worth doing now.

Kapiti bypass: Essentially a four lane expressway between the current highway and the coast bypassing Paraparaumu and Waikanae. The Kapiti Coast District Council, now dominated by environmental radicals, is against it. However, it is desperately needed. Undoubtedly the best project in the package, will greatly relieve congestion in the whole District. The only reason this hasn't happened before is because previous governments left the problem to the council!

Basin Reserve flyover: A stunted portion of the Inner City Bypass Wellington should have done. Basically gets rid of the conflict between airport/eastern to region traffic and southern to city traffic. Opposition is driven partly by lies around it "destroying" the Basin Reserve, when there have long been plans to build this, as part of a proper motorway to connect at the Terrace Tunnel. On it's own, it's not really worth it, it should be part of a proper bypass of Wellington, but there is little real vision to take through traffic out of the city, to reduce the width of the waterfront route and enable Wellington to properly connect to its harbour. So what's more important?

Phase 2

Transmission Gully: Half the total cost of this package of roads is in this one road, bypassing Porirua, Mana, Plimmerton, Pukerua Bay, Paekakariki on a road just as long as the current one, with hills as steep as Ngauranga Gorge. Why? It's called politics over economics

Phase 3

Mt Victoria Tunnel duplication with 4 laning to Wellington Road: Finally, Wellington's long standing bottleneck between the airport and the city will be removed. Again though, the traffic will be dumped on an el cheapo one way system that the Greens opposed that opened only a few years ago. Again, this project is probably not worth it until a proper bypass of the city is built.

Otaki bypass and four lanes to Levin: An Otaki Bypass is no doubt good for Otaki, to some extent, and four laning is good for safety, but again this should hardly be a major priority.

Terrace Tunnel duplication: Perhaps Wellington's last bottleneck after everything else? So will all of Wellington's traffic problems be fixed? No. Ask yourself whether two or three lanes of traffic dumped from a motorway onto Vivian Street to make its way to the Basin Reserve is really going to work. Yes, it is probably worth building - with a bypass.

Given all this being funded, I can hardly imagine a big road project NOT being approved. The engineers suggest it, the Nats will fund it. A crying damning waste of money. Whilst Labour pissed money down a hole on railways (which the Nats are only slowing rather than stopping), National now pisses money down the hole of roads.

Yes there are parts of the road network that could be improved, but with a system where everyone pays the same regardless of location or time, you will get congestion. With a system that means that those who pay have no relationship with those who build the roads or run the roads, consumers will not always be happy, and the producers will waste because they don't get signals from consumers about what they are prepared to pay for.

Roads are just an economic good, like any other piece of infrastructure. You let politicians and bureaucrats make decisions about how to spend the money taken from you for using them, and now, the money taken from you for NOT using them.

The Greens will be furious, and notwithstanding their irrational hatred of motorised road transport (and hypocrisy over railways), there will be a point. Roads shouldn't be subsidised by non road users.

However, no believer in free markets, private enterprise or capitalism should applaud what is an enormous transfer of money from taxpayers across the country to road users in the capital. It is at best the grand visions of central planners gone mad, with the irrational "Roads of National Significance" moniker used to justify gold plating State Highway 1. At worst it is cynical vote buying, securing the support of the unprincipled political minnow of Peter Dunne, ensuring Labour can't promise any more, and giving National MPs some big projects to open, Stalinist style, to applause - whilst those who paid for it don't notice just a few dollars each week less in their pockets.

UPDATE: David Farrar shows his own economic illiteracy by wanting Transmission Gully to have been built two DECADES ago, when the business case would have been far far worse, with far less traffic.

Government thieving from you to build a boondoggle

So Steven Joyce has just made a political decision to piss your taxes down a hole to subsidise the building of the Transmission Gully motorway.

He's bought a series of arguments that are sheer bullshit. Why? Because I saw the evidence a few years ago when they were rejected then.

Firstly, there is the nonsense that somehow Wellington needs a motorway with a huge viaduct to "connect" it to Kapiti and Horowhenua in the event of a major earthquake. Quite what Wellingtonians will gain from this is unclear when:
- There is only one bridge over the Waikanae River;
- There is only one bridge over the Otaki River;
- There is only one route along a faultline from the Hutt to Wellington city;
- Transmission Gully itself is on a faultline.

$1.5 billion is an expensive insurance policy.

Secondly, there is the nonsense that the coastal route would cost "as much". This could only possibly be true if you engage in ridiculous green-plating and gold plating of the coastal route. Why?

Transmission Gully duplicates about a third of the coastal route as it connects near Kenepuru not Paremata.

There has long been a designation for a bypass at Pukerua Bay, it would be little effort to buy back the few properties along the route.

The coastal route could be built along what is essentially a rather mundane coastal embankment that is already reclaimed. Paekakariki can be protected from the highway by some grade separation.

Paremata/Mana does not need a bypass, as the current route is quite adequate, and ultimately a bypass can be built at grade.

Transmission Gully has a cost/benefit ratio which means the gains in travel time savings, fuel savings and pollution are half the total cost of the road. It is a massive transfer to the property owners along Mana, Plimmerton, Pukerua Bay and Paekakariki, and many on the Kapiti Coast.

Oh and it can't be funded by road user taxes or tolls, so your income tax, GST and company tax will be subsidising a road, primarily for people to commute to primarily government jobs in Wellington.

Before Labour supporters have a moan, they ought to note they started it. They folded against the pressure of the one man party, Peter Dunne, and the Porirua City Council, to have taxpayers pay for one of the biggest boondoggles in New Zealand's recent history. Labour has spent $90 million on consultants to allow Transmission Gully to be built, now National is going to spend 13 times that to build it.

Oh and Labour destroyed the political independence of the former Transfund to separate decisions on building highways from funding highways (something National opposed at the time).

So the more things change, the more they stay the same.

You thought there was a budget deficit, you thought there wasn't enough money to give you a tax cut. No, there's enough for Peter Dunne.

Gordon Brown steals for climate change

Part of the whole Copenhagen charade is that the European Union has promised £6.5 billion of other people's money to give to developing countries because of their own ineptness in industrialising over the past few decades.

What's particularly galling is that Gordon Brown increased the UK contribution of £1.2 billion of as yet unborn childrens' taxes to £1.5 billion to be thieved from the unwilling. More than any other European country. Even though Germany and France have greater GDPs, this wasteful, thieving, now increasingly socialist Labour government is out committing more borrowing to steal from kids to pay for the corrupt, protectionist and ungrateful developing world.

Gordon Brown acts as if he has money to spend, but he has none. He borrows it to leave to future governments to take from taxpayers, and he can hold his head up high, having nearly bankrupted the UK. It's repulsive.

Developing countries are spreading lies such as how they will be "destroyed" by climate change, so they have the begging bowl out, when so many of them are led by governments of kleptocracy and excess. They ignore that the biggest per capita emitters are the likes of Bahrain, UAE, Qatar and Kuwait. They essentially want Western companies and holders of intellectual property to hand over technology to the likes of China, India and others who are not creators of technology, who will then copy it and out compete the West.

It is an argument of envy, envy of the developed, envy of those that have been locations of technology, of education, of capitalism. It has become an argument for, what is quite simply, socialism.

From each according to his ability (i.e. to the extent the West can pay) to each according to his needs (i.e. the extent to which the developing world asks). It isn't really about the environment so much, because if it was, then maybe the arguments would be different?

Blood for oil? Hardly

Some of the leftwing anti-American opponents of the war to overthrow the Saddam Hussein dictatorship said it was "blood for oil". The fact the Hussein regime had ignored UN Security Council resolutions on weapons of mass destruction (and had used them previously), didn't matter. The fact that the opportunity existed to overthrow a brutal aggressive autocracy didn't matter. It was seen as neo-imperialism, and simply sacrificing lives for US oil companies to pillage natural resources.

Reuters reports this week show this to be the absolute nonsense it always has been. US firms have gained few contracts in recently signed deals to service Iraqi oil fields, with firms from many other countries gaining much of the action.

Christopher Hitchens in Slate describes the result as such:

"Three features of the outcome were worthy of note. The auction was to award service contracts rather than the production-sharing agreements that the major corporations prefer. The price was set at between $1.15 and $1.90 per barrel, as opposed to the $4 that the bidders originally proposed. And American corporations were generally not the winners in an auction where consortia identified with Malaysia, Russia, and even Angola did best."

Thus, the vulgar and hysterical part of the "war for oil" interpretation has been discredited: Iraq retains its autonomy, the share awarded to outsiders in development is far from exorbitant, and there is no real correlation between U.S. interests and the outcome.

There was always an argument that spilling blood of one's military largely for the sake of negating a threat to others should be done carefully. The case for attacking Iraq was made on various grounds. The link to Al Qaeda was spurious, although the willingness of the Hussein regime to support terrorism was clear. The suspicion on weapons of mass destruction had a real basis, given the regime's clear willingness to use chemical weapons in the past, and its previous pursuit of nuclear technology, but it proved to be a mirage that even the regime may not have understood.

So what did the war on the Hussein regime achieve? Liberty.

The war removed a malignant regime, that did yes get some Western (and much Soviet) support in the 1980s because it offered a counterweight to Islamist Iran, but most in the so-called peace movement wont let that go, even though it was three Presidents ago. The deaths in the war would easily have been rivalled by the murders undertaken by the Hussein criminal gang.

However, the mostly Islamist insurgency has murdered thousands. Some in the so-called peace movement regarded them to be "freedom fighters", ignoring that whenever the insurgency controlled parts of Iraq, it applied the same approach to freedom as Mamoud Ahmadinejad or Osama Bin Laden.

Now Iraq is far more stable, the surge, opposed by the current US President, has worked enough that the UK has withdrawn, and Iraq is becoming a fairly liberal democratic open state between Islamist Iran, tired authoritarian Syria and the ruthless autocratic Saudi Arabia. It does have almost as much oil as Saudi Arabia, and looks to be taking advantage of it with a government that undoubtedly will be more transparent, liberal and democratic than any other Arab states.

There are still those who believe this shouldn't have happened, that the Saddam Hussein regime stay in place (to say you opposed the war but also oppose the Hussein regime means you either support the outcome of the war or you're lying about it). Certainly the war was conducted appallingly after the Hussein regime was toppled, with enormous incompetence, but the outcome is looking positive, at last.

We'll never know what would have happened had the war not happened, Hussein would undoubtedly have sabre rattled some more, would have killed and tortured a few thousand more Iraqis, and continued to pillage Iraq for the gain of his vile family. Would he have backed more terrorism in Israel? Probably. Would he have sought alliances with Russia? With China? Would he have found a comfortable arrangement with Iran?

I'm grateful we can't ever find out.
What we can know is that