A poor critique of National's transport policy

It’s entirely in keeping with their philosophical bent, for taxpayer funded RNZ to publish as a lead article on its website, a piece by Timothy Welch, senior lecturer in Urban Planning at University of Auckland. It’s also hardly surprising that the taxpayer funded Spinoff has published the same article, as they share a common view of the world, which is predominantly sympathetic to the objectives and ideology behind transport policy in NZ since 2017. 

I am sure Mr Welch is a smart man, so it is pity that it seems to have been written in a rush because it is such a poor critique of the National Party’s transport policy. The views he expresses exemplify why I’m sceptical of urban planners. The very problems they seek to fix are in some considerable part because their predecessors had an overly simplistic view of the complexities of cities, economies and the wants and needs and preferences of human beings.  However, even more important is to understand that the philosophy of transport policy expounded by the Government, which also comes from some academia and is essentially the ideology promoted by the Green Party, which is to treat transport modal choices as a hierarchy that essentially devalues the personal preferences of the public relative to what the planners think is “good for society and the planet”. It devalues people’s time (by wanting people to travel more slowly), money (by wanting to tax them more for infrastructure and services they don’t use) and comfort (by wanting people to use less comfortable modes), in favour of choices that whilst certainly having merits in many circumstances, are for many users inferior to their own preferences (and do not reflect people’s willingness to pay).  What is worst is that much of the argument is based on overly simplistic rhetoric and claims that some of people’s choices are either morally wrong or based on them being “addicted” to driving.

So what about Welch’s article?

It was clearly written as a hit-job on National’s recently released transport policy, which itself has strong hints of central planning, command and control in picking projects it wants to advance, although these are mostly projects to facilitate faster and safer travel of motor vehicles, whether cars, buses or commercial vehicles.  Let’s be clear National is hardly advancing a free-market libertarian vision of transport, but it is a contrast from the view of the Greens and the Labour Government, which want to cut kilometres driven by cars and light commercial vehicles by 20% on average across the country (which in cities means much more than that, given the scope to cut driving in rural areas is much lower).  Just consider that, Labour wants you to drive 20% less, regardless of whether or not you have an EV.  Labour hasn’t quite swallowed the Green approach completely, as the Greens treat any road building as at best a waste of money, and at worst a crime against the planet which fuels people’s “addiction” to their cars (which they would only break away from if they were instead forced to pay for billions in subsidies for other modes of transport). 

Welch starts by claiming there is an old joke about “just one more lane” to relieve congestion, even though the main part of this proposal is actually about building intercity 4-lane highways between major centres, in the manner of countries like Finland, Switzerland, the Netherlands, Denmark, the UK and Ireland. Sure there are a few proposals that expand urban road capacity, but in none of these cases does it involve adding lanes to roads recently expanded. For example, New Zealand's first motorway - Johnsonville to Tawa, has the same number of lanes today as it did when it opened in 1950.  Maybe the old trope of the Greens that lanes just keep having to be added isn't universal after all?

He claims that National wants to build a four-lane highway from Whangarei to Tauranga for $6b when the $6b claim is only for four projects that cover only a fraction of the route (noting 205km of the route is already motorway/expressway with 177km remaining). He ties himself up in a rough calculation to say it couldn’t cost $6b, when he could have simply read the policy document in the first place.  It literally proposes $6b to four-laning Whangarei to Port Marsden, Warkworth to Wellsford, Cambridge to Piarere and Tauriko West SH29. 

He then claims that “The opportunity cost of these projects also needs to account for those who don’t – or don’t want to – drive a car”.  That begs two questions, why? And how don’t they? None of these projects hinders people who don’t want to drive, indeed building new highways offers opportunities to improve cycling on existing routes, and can support faster and more efficient bus services, and improves the amenity of towns bypassed for walking and cycling.

Furthermore, what is the opportunity cost of using funds collected from motor vehicle users (fuel excise and road user charges) to pay for roads? He would have a point if Crown (general taxpayers’) funds are being used to pay for them, but it is the opportunity cost of using ANY taxpayers’ funds? It takes money away from people spending on their home, their kids’ education, books, food, investing for their retirement. It doesn’t need to account for those who don’t want to drive, anymore than it needs to account for those who don’t want to consign freight by road. If people don’t want to drive they can catch scheduled bus services between Whangarei-Auckland-Hamilton and Tauranga, they can fly and if they are keen they could bike, but there is a curious blindspot among some planners about intercity bus services. They simply pretend they don’t exist because they see rail as the holy grail of virtuous, environmentally friendly transport, but it’s a shame they actually don’t want to pay for it out of their own funds.

He critiques National wanting to scrap light rail proposals for Auckland and Wellington, but then gets it wrong saying “National argues that additional motorways and tunnelling in Wellington would be more cost-effective”. National is proposing no new motorways in Wellington at all, but rather a second Mt Victoria Tunnel (which is not a motorway) and improved approach roads to it. 

The policy says “National supports bus rapid transit and bus priority lanes for Wellington to make it easier to get into and around the city. A duplicate Mt Victoria Tunnel will allow for greater bus access to the east, bus priority lanes on the roads leading to the tunnels, and much more free-flowing traffic through the tunnels, including for buses”. So did he just blank-out that National actually thinks bus rapid transit is better in favour of agitprop that it’s all about motorways, when literally no motorway is proposed?  Furthermore, the current LGWM Mt Victoria Tunnel proposal doesn’t include light rail anyway, but bus rapid transit.

Welch continues by claiming that light rail is “fast, efficient and equitable”, yet the LGWM proposal for light rail to Island Bay would still be slower than driving and slower than the current express bus service from Island Bay, because it would stop frequently.  It wouldn’t be efficient because it could never recover its capital costs, and it would be much worse in recovering the costs of operation compared with bus services. It wouldn’t be equitable because its eye-watering cost would be paid by ratepayers and road users throughout Wellington even though most would never use it (and it would, if LGWM is to be believed, significantly uplift land value along the corridor thanks to that subsidy).  He compares it to Sydney’s Randwick and Kingsford lines recently opened, even though the NSW Auditor Office notes that the project, originally costed at $2.1b ended up at $3.1b and that the project benefits have had to be revised downwards. Of course Sydney does have a population greater than New Zealand

Welch continues by claiming buses and trains produce about 80% less carbon emissions per passenger kilometre than cars, which is entirely dependent on patronage. Trains and buses with few people on them are not exactly environmentally friendly, and it is highly dependent on type of vehicle.  A plug-in hybrid has lower emissions per passenger km than a diesel bus. Bear in mind the ETS internalises the costs of climate change by putting a levy on the price of fuel, so motorists are already paying for the emissions they produce, and that price will be rising over time. In short, policies to reduce emissions are incentivising people to change behaviour, it’s just that it’s not enough for Welch.

Welch makes the claim that “Given the observable realities of the climate crisis, many have questioned the logic of leaning into road expansion as a policy, especially at the expense of efficient public transport”.  I’ll let you speculate on who the “many” are (and let’s leave aside the abuse of the term “efficient” again), but the whole basis of this is a widely cliché’d claim that “More roads encourage more traffic and more driving, often leading to even worse congestion”. Bear in mind that the bulk of the National proposal is for intercity highways to be upgraded and be faster and safer and have more capacity, and is not about congestion.  However, the “build more roads, watch them fill up” claim is neither universally applicable, nor takes into account a key element – price.

Most roads in New Zealand carry traffic volumes at a tiny fraction of their capacity, because the mere presence of a road doesn’t generate demand beyond what origins and destinations generate for personal or freight transport. Sure, expansion of an urban highway, especially one parallel to a public transport route, without any price signals to reflect cost and capacity, can encourage more demand and relocation of housing and businesses to reflect the lower generalised cost of travel.  Auckland has witnessed this as its population has increased and motorways improved, this has reduced travel times and encouraged more use of them. However, this is not a problem if the roads are paid for by those using them and price signals are set to manage demand.  This is where Welch is being wilfully blind because

“National will also introduce congestion charging as a new tool to help reduce travel times in our congested cities”

Congestion charging can mean new roads can be built and not get congested, it can mean motorists pay more to use roads as a scarce resource at times of peak demand and less when there is plenty of capacity.  Congestion charging is supported by the Greens (albeit as a tool to punish motorists), but it would do more to reduce emissions than building boondoggles. LGWM estimates congestion charging could reduce car trips into central Wellington by 8%, but you can speculate for yourself as to why Welch doesn’t celebrate this and rethink his narrative. Bear in mind also that the Labour Government received reports on Auckland congestion pricing in late 2019 and has essentially sat on it for three years, and Phil Twyford actively opposed Wellington congestion pricing when he was Minister. 

Welch then rightfully points out that EVs are a small proportion of the fleet, yet ignores the significant growth in hybrids and plug-in hybrid vehicles as well, which cut emissions by between 55% and 85% respectively on average. In short, the light vehicle fleet profile is one of lowering emissions, and this is likely to continue as such vehicles get cheaper, and the secondhand import market’s share of hybrids grows so much.

Then we get Welch’s weirdest comment:

“EVs require the same amount of road space and, due to their increased weight, potentially cause more road damage. But EV owners don’t buy petrol, which means they don’t pay excise tax – the same tax that pays for expanding roads”

The differences between EVs and petrol and diesel powered cars in terms of weight are insignificant in terms of road damage, this is why there is one rate for road user charges (RUC) for vehicles under 3.5 tonnes.  Around half of road damage costs are due to the effects of weather, and most of the rest are due to heavy vehicles, a few hundred kilogrammes of additional weight in a car are not important in terms of road wear. The bigger error is ignoring road user charges RUC by weirdly saying EVs don't pay excise tax (on petrol), but then neither do diesel vehicles.  EVs used to be liable for RUC, but have an exemption until 1 April 2024. Assuming the exemption is not extended, EVs will start to pay on a per kilometre basis then. This comment of his is fairly pointless.

Finally Welch claims the policies are akin to those from the 1950s and 1960s, which is perhaps an overly simplistic view of the time. In the 1950s Wellington had its biggest expansion of electric passenger rail in the country’s history to date, with construction of the line through the middle of the Hutt Valley and electrification to Upper Hutt, along with the development of Tawa that followed EMU service introduction to Paekakariki from 1949.  Yes governments did embark on gradual motorway building, but did so in a haphazard manner (Auckland’s North-Western Motorway didn’t even extend all the way to the city until 1983), largely responding to a public that preferred driving to the monopoly local authority owned and operated bus services, which suffered from regular strikes, lack of capital spending on new vehicles and poor quality of service (e.g. exact fare requirement in Auckland for many years).  It was also hardly car-centric when central government for decades taxed the importation of new cars by up to 60% or simply restricted the numbers permitted. This saw the price of cars inflated above market prices, and the fleet remain much older and less safe than it would have been otherwise. This didn’t completely end until 1998.  

There is nothing behind the claim that the road building of the past made transport “less efficient and less equitable”. Indeed the 1950s and 1960s were also dominated by a law that prohibited freight being moved more than 30-40 miles in competition with railways, because Welch’s predecessors in the world of planning thought they knew best how freight should be moved about in NZ.  The shackles of regulation on freight and passenger transport, and tariffs and import restrictions on vehicles were thrown off in the 1980s and 1990s making transport significantly more efficient. The idea it would be more efficient for motor vehicles to be using the Great South Road to travel between the Port of Auckland and Waikato, than the Southern Motorway is just ludicrous.  There are sound arguments to be made that the highly invasive motorway building through central Auckland did not take into the opportunity costs of the land used, which could have encouraged an alternative approach such as tunnelling or redirecting through traffic towards the west, but the simple point is that the past saw enormous inefficiencies and costs to safety and the environmental because one set of planners decided they knew what was best.

There are reasons to criticise the National transport policy. Who knows what the net economic benefits are of the proposals? Why isn't there a bypass of Te Aro for Wellington? Is Waka Kotahi the right structure for undertaking so many operational and regulatory activities? What should be the future of road user charges and fuel duty?  Should Kiwirail be split to encourage more rail operators to come to the market? What are the barriers to competition in various transport markets?  It's unclear how road safety will be addressed, and are there too many road controlling authorities? Is Auckland Transport performing efficiently and responsive to the needs of transport users? What about the public transport funding framework implemented by the Government.

Unfortunately Welch’s rant seems like an ill-focused take that could have just come from the Green Party press office. I expect he can do better than just ‘cars and roads bad, trains and trams good’.

Inter-regional passenger rail - a dearth of serious analysis

I LOVE travelling by train, I caught long-distance passenger trains as a child. My father took me on the Northerner in a sleeper to Auckland and back on the Silverfern, I rode the Southerner from Christchurch to Dunedin, I rode the Picton-Christchurch Express and the Christchurch-Greymouth Expresses, and my first long-distance trip by myself was on the Wellington-Gisborne express.  I took the last Bay Express from Napier to Wellington.  I rode the Indian Pacific on my honeymoon, I've ridden Amtrak, I rode umpteen trains in the UK when I lived there, including the sleeper from Paddington to Penzance, I was a frequent traveller on Eurostar. I rode by rail from Pyongyang to London, on five different trains across China, Russia, Belarus, Poland, Germany and France. 

So nobody can accuse me of not liking trains. I had a model railway as a kid, and yes I have a transport nerd's knowledge of a lot of trains, and I wished the Silverstar had returned to service and I even wrote to the Minister of Railways at the time pleading the case (who was Richard Prebble!).

I would be thrilled if there could be more, viable, long-distance passenger rail services in New Zealand, but I am not thrilled by the idea that they are, somehow, special and deserve to get taxpayer subsidy over air and coach services, let alone private motoring. 

The Transport and Infrastructure Committee of Parliament has wasted time and taxpayers' money investigating whether taxpayers should pour money into subsidising long-distance passenger rail services (called inter-regional by the Committee), and has produced a report that largely consists of "reckons" by activists with a complete paucity of evidence and analysis as to the costs and benefits of doing so.

The fact that the Committee has produced such a poor quality report reflects both on the understanding of the majority of its Members (from Labour and the Greens), and the staff supporting the Committee, who seemed to be incapable of undertaking some fairly basic research or analysis (or perhaps were directed not to bother too much).  You would think they could at least have gotten some information from this book.

It made six recommendations, of which my favourite (for the wrong reasons) is "We recommend that funding arrangements for future inter-regional passenger rail services reflect the level of national benefit of such services to New Zealand". At best that would be nil, at worst it means the Committee thinks subsidies should equal benefit, so each dollar of taxpayers' money spent should return a dollar, which displays the level of economic ignorance of the Committee.

It's worth a read, as it exemplifies the standards of critical analysis that are deemed acceptable by many MPs today, and it shows how far there is a dearth of economic and policy analytical depth today.  Noting this Committee was supported by the Ministry of Transport, the Infrastructure Commission and an economist. 

Take the introduction which mentions how lots of people used to catch trains then:

"However, as private car and air travel became more popular and accessible, many passenger rail services were cancelled. The national railway network then experienced decades of underinvestment."

Hang on, so WHY did private car and air travel become more popular?  The first because of flexibility, you didn't need to wait hours or a whole day till it was time to travel, and it didn't necessary go from where you live to where you wanted to go.  Plus trains were simply slower. Air travel is obvious, it is fast and it became a lot cheaper over time, as did car ownership.  Modes that were faster, more convenient and more flexible and ultimately cheaper saw people abandon passenger rail.

However. the "decades of underinvestment" claim is quite something. For a start, there was underinvestment from the 1920s onwards, NZ Railways didn't bother reintroducing dining cars after World War 1, and the last remaining one operating in 1930.  There was no on-board catering (beyond tea and coffee) until 1970, so the "underinvestment" was par for the course by the Railways, as it treated its peak passenger demand like many monopolies do, it took them for granted.

To claim there was underinvestment as demand tailed off implies there should have been more "investment" poured into passenger rail, in the 1960s, 70s, 80s, but why, and for what ends?  In reality the major problem was that the NZ Railways Department operated as a heavily-unionised government department with monopolies on much of the market to move people and goods. It was simply a lazy, non-customer focused organisation, it was focused on political and industrial relations imperatives.  Business travellers moved to airlines and leisure travellers to cars, and it wasn't until the Lange Labour Government stop subsidising long-distance passenger rail that it became much more responsive to passenger demand and was business oriented.  That Government gave the Railways Corporation its final subsidies as a lump sum to upgrade services and make them viable, which it did at the time. It's just that over the subsequent 20 years demand changed, airline competition saw fares drop substantially in real terms and the removal of protectionism for local car assembly saw new and used car prices drop as well. People's mobility improved and demand for long-distance rail travel eroded. The routes with growing overseas tourism demand thrived, like the Tranz-Alpine and Coastal-Pacific services between Christchurch and Greymouth and Picton respectively are scenic trips, and are viable in their own right. The Auckland-Wellington Northern Explorer has hung on marginally, but the largely locally used Southerner and Bay Express had insufficient patronage. Rotorua's Geyserland Express suffered because the cost of the service had to bear the full cost of the track as freight traffic was not viable from Rotorua to Waikato/Auckland, and the Kaimai Express to Tauranga had insufficient patronage on a regular basis (also not a route significant in scenery or as an overseas tourism destination).

However, the Committee didn't get told that. 

In the Background (p6), another enormous error is published:

"Over time, and particularly in the early 2000s, focus shifted away from passenger rail services towards providing rail freight services."

This is complete nonsense, railways in New Zealand have been focused on freight for literally decades. In the 1970s the Railways Department noted that the proportion of its business that is passenger traffic was less than 20%.  Unlike railways in Europe and Japan, passenger traffic has not been the focus for railways in New Zealand perhaps since the 1920s.  It is the same in Australia and the United States.

The report summarises Te Huia without really shedding any light on whether it actually contributes to what the report says is the point of the inquiry, which is whether there are any net benefits in expanding inter-regional passenger rail.  There is NO data on how many Te Huia passengers previously drove a car to take the same trip compared to how many are new trips (and whether it enabled people to take jobs they didn't have before, or if they are simply leisure trips). There is no data on the effects on competing, unsubsidised bus services, in other words the analysis is just how many passengers ride it, how happy they are and how taxpayers/ratepayers are paying more than 85% of the costs of RUNNING the train, let alone the capital costs of purchasing and refurbishing the rolling stock and upgrading the stations.  Where's the economic analysis?

It summarises the Capital Connection service (Palmerston North-Wellington) without noting it was set up and operated on a fully commercial basis for many years, without subsidy.  There is no data on daily patronage (just annual) and none on farebox recovery, but there is this odd insertion of a generic definition in the report:

"The Capital Connection service uses older rolling stock that is nearing the end of its life. Rolling stock refers to railway vehicles, such as locomotives, carriages, wagons, or other vehicles used on a railway."

The authors forgot to write a definitions section, and also forgot to mention how much money was spent to acquire rolling stock for Te Huia and build a new station (and upgrade another) (it was $49 million).

The report continues with a completely odd section about historical services, which it could have largely left, or it could have focused on those that operated until 2001.  However it is just full of mistakes (p7-8).  Without nitpicking...  Auckland-Tauranga and Auckland-Rotorua were reinstatements of services that were cancelled in 1967, because of poor patronage. The Waikato Connection seems odd to include as it was a trial of less than a year, especially since Te Huia is essentially the same route. The Northerner did start in 1975, but was a successor of the first Main Trunk overnight service started in 1908.  Why mention that and not the Silverstar? 

However there was no Endeavor (sic) between Gisborne and Napier, Gisborne hasn't had passenger rail service since Cyclone Bola in 1988, and the Endeavour ceased operating in 1981 and never returned to Hawke's Bay (it was used as a substitute train from Wellington to Auckland, and the rolling stock later refurbished (with higher density seating) returned to use as a pool for several unnamed services).  It is also odd to talk of the "New Plymouth express" starting in 1955, when it finished in 1955 and was replaced by a railcar service, until 1977.  There are umpteen books about this, and it wouldn't have taken long for the Committee to get an actual rail enthusiast or two to confirm all of this.  

I could point out minor errors in the descriptions of the roles of agencies, such as "The NLTF is made up of revenue from fuel excise duty, road user charges and road tolls, vehicle and driver registration and licensing".  No, driver licensing fees do NOT go into the National Land Transport Fund.  Seriously, how hard is it for the Ministry of Transport to not fact-check such basic stuff?

The bulk of the report is a summary of what submitters said with little analysis as to its merits. For example, on p13:

"Submitters highlighted that inter-regional passenger rail would also benefit users of other transport modes. For example, if more travellers used inter-regional passenger rail there would be fewer cars on the road. This would reduce congestion, thereby shortening journey times and reducing costs for road users. Some submitters suggested that investing in rail and alternative transport modes would reduce wear on roads and save on expensive road upgrades."

This assumes the extra demand comes from car drivers, it assumes that congestion arises from inter-regional car driving (which outside peak holiday times is simply not true) and the marginal cost of car use on road wear is so tiny (most road wear is caused by heavy vehicle axle loads and the effects of sunlight, rain and temperature changes), so it simply wouldn't reduce road wear in any meaningful way.  

This utter nonsense is repeated lower on the page:

"Passenger rail could also enable more efficient use of existing transport infrastructure. This is because a reduction of vehicles on the roads would be likely to improve the longevity of road infrastructure, reducing maintenance costs and the volume of emissions-intensive resources needed to support maintenance and renewal programmes for roads."

No it wouldn't, this is just ridiculous. Fewer cars has next to no impact on the maintenance of state highways, and to talk about "emissions-intensive resources" to maintain roads, without noting that railways need resources to be maintained as well, and are a duplicate network to roads is completely lunatic thinking, and it's shocking that such claims are giving the credibility to be in a summary.

Further nonsense appears below:

"Submitters noted that passenger rail could improve New Zealand’s resilience to the effects of climate change, natural hazards, and other events. For example, if natural hazards or extreme weather events prevented access to roads or air travel, rail could provide an alternative method for moving people and goods."

Those submitters are morons. Unless you happen to live near a railway station (walking distance) the idea you will get there or that consumer goods would get to you by rail if a road is closed is largely fanciful. Most parts of the rail network are much more vulnerable to closure than the road network, and there has never been any case of a natural disaster which left the railway intact to perform access functions that the road could not (in fact very much the opposite). 

The absurd claims continue, until on pg 14 there is this:

"Some submitters also suggested that inter-regional passenger rail would offer an alternative to domestic air travel, thereby reducing aviation emissions"

Yes if you have a lot of time to spare.

Claims on emissions don't include key caveats, such as patronage or whether or not a car driver is driving an electric car.  

"While a diesel train is generally a lower-emissions form of transport than petrol car or air travel, an electric train can produce around three times less emissions than diesel train"

Besides the pointless reverse mathematic of "three times less", this is entirely dependent on how many people travel on the train compared to the car or aircraft.  Before many services were stopped in 2001 and 2002, the average patronage of those services was much less than a busload.  There is absolutely no analysis about what levels of patronage or modal shift would make sense from an emissions point of view (and of course the fact the Emissions Trading Scheme caps emissions from domestic transport is blanked out, officials and politicians so often just pretend that cutting emissions has no cost, or that they aren't replaced by emissions from others, unless the cap is reduced).

The Committee's response is rather entertaining...

"We think that inter-regional public transport could bring demonstrable public value to New Zealand."

..."While it is evident that there are wide societal benefits associated with passenger rail, it is difficult to measure or quantify these benefits."

Here's a clue, the people who benefit from passenger rail can quantify the benefit according to ... whether they are willing to pay the costs of providing the service!  It isn't "evident" because there was literally no evidence published from submitters in this report, just "reckons".  No evidence whatsoever!

The report isn't without some glimmers of sense though.. on pg.16:

"Increasing inter-regional passenger rail will likely require a high level of investment in the national rail network. On the other hand, historical trends suggest that inter-regional passenger rail services are unlikely to result in a high commercial return without services experiencing patronage growth. Careful assessment will be needed of whether inter-regional passenger rail services are the public transport option that best benefits the public."

Maybe if they had a high commercial return you wouldn't get involved? The last sentence is perhaps generously stating that there is unlikely to be any reason why inter-regional passenger rail services are the best option.

Then there is this claim, throwing the bus sector.. under the bus:

"We note that several commercial bus or coach services operate inter-regionally. While these options do not provide the same level of public benefit as passenger rail, particularly in terms of accessibility and environmental benefits, they remain a viable option for many people."

That's right, buses are MORE environmentally friendly than trains, and their accessibility is likely to be higher because they can stop just about anywhere.  Then the committee of politicians and bureaucrats make this empty claim:

"If passenger rail services are designed efficiently, accessibly, and in a manner that meets people’s needs, there is real potential for large-scale uptake."

In short, if you design a service that people want to use, they might use it.  However, what does any of this actually mean?  What demand IS there on the key routes submitters discuss? Couldn't the Committee have obtained data on intercity bus service demand and long distance car traffic, and if not, why not?  How many people drive between Auckland and Tauranga each day, surely you need to know this if there is likely to be some assessment of potential for a rail service?

Fortunately the Committee isn't completely mad as it decides to be focused on... more evaluation:

"At this stage, we think what will be most useful is identifying specific inter-regional services that should be investigated further. We need to better understand the costs and benefits of specific services before we can properly evaluate their potential."

No, you can't evaluate any of this.  You don't decide what routes Air New Zealand and other airlines fly, or routes Intercity operates, so you shouldn't be doing this.

Then Te Waihanga, the Infrastructure Commission, weighs in on pg.18, without thinking more widely about the point:

"Te Waihanga told us that KiwiRail’s commercial mandate means that investment decisions are often made based on the economic viability of services, rather than consideration of any wider societal costs and benefits. This means that, even if a rail service would be worthwhile from a public-value perspective, investment is still unlikely to occur."

Well it doesn't happen for air or bus services, or inter-regional freight services, so why is rail special? Indeed, regional councils ARE mandated with thinking about public transport subsidies and "public-value", so they actually can work together on this.  What matters more is that Kiwirail has a monopoly on managing access to the rail network, so no other business can readily obtain access to that network without Kiwirail approving it. This looks likely to be provide one option for enabling at least other commercial operators to have a chance at providing more services.

Te Waihanga can't identify the "public-value" of these services, but maybe it thinks this should be its job?

Ultimately the report seeks a growth in bureaucratic involvement in transport by saying"We recommend that the Government identify an agency to act as system lead for interregional public transport.".

Why? Because it can't identify whether inter-regional passenger rail is worthwhile, or specify how it might be. So it calls for a new role for government to "lead" not just rail, but bus and even ferry (maybe even airline) services.

This is absurd, because unless there is a clear case for this, it would set up an agency with responsibilities that it would, no doubt, decide, needed to be expanded. You can see a return to the days of 1970s when transport licensing was undertaken based on demand, with intercity bus services regulated (can't have them "undermining" inter-regional passenger rail), and the heavy hand of central planning seeking to respond to the demands of whoever the Minister of the day is.

The remainder of the report is the Committee's "reckons" as to routes worth further investigating.  Tauranga-Auckland is suggested with zero analysis of potential demand, Auckland-Wellington suggested whilst dismissing the fact there is already a service, it is geared towards tourists people who are willing to pay the costs of using the service.  The claim for Auckland-Wellington is that it should be "affordable" which is code for "paid for by someone else". The case for why one mode of travel between Auckland and Wellington should be subsidised when none of the others are is not made.  It then suggests Napier-Wellington. Why? Who knows, because literally nothing the report backs that route as an option over say Christchurch-Dunedin (it also falsely claims there is no station in Napier, when the old station remains very much intact). Likewise, extending the Capital Connection to Feilding is presented with zero evidence as to why.  This is literally just bureaucratic and political reckons based on nothing, although the report claims "The case studies we have identified in this chapter are what we consider “low-hanging fruit”."

However, this is based on virtually nothing, except the wild claims of rail enthusiasts. 

The only saving grace of this report is that the National and ACT members dissented, presumably they could see how ridiculous this all this. 

It's all quite simple.

Inter-regional passenger transport is, by and large, commercially viable or privately funded.

Air New Zealand, Jetstar, Air Chathams, Soundsair, Originair and other domestic airlines operate such services fully funded from users, paying airports to use the infrastructure and including the cost of the Emissions Trading Scheme in their fares. 

Intercity operates commercial coach services, again fully funded from users, paying road user charges and also paying for emissions through the ETS.

Private car owners and renters of cars pay for their own cars, paying for fuel including fuel tax and the ETS, again paying for the road.

Kiwirail runs commercially viable inter-regional rail services between Auckland and Wellington, Picton and Christchurch and Christchurch and Greymouth. If it sees business opportunity in starting new services it should do so. Likewise if any other business wants to start up such services on the rail network, Kiwirail should not get in its way.

However, there is no serious public policy reason to spend taxpayers' money to set up new passenger rail services. The state highways are generally not congested outside a handful of holiday periods, and will not be relieved by a few daily passenger rail services.  Almost all rail routes are significantly slower than the parallel state highways (and one train a day will not justify pouring hundreds of millions of dollar in speeding up rail lines).  The dream of an overnight sleeper train service between Wellington and Auckland may seem nice, but realistically most business travellers would rather fly, and the density of sleeping accommodation to be competitive would be akin to couchettes because more standard sleepers would just be too expensive compared with flying (and beyond Friday and Sunday nights, patronage is unlikely to be high).   However, of course, the advocates for this, don't want to pay the full cost of providing the service - even though the passengers on Airbus A320s pay for theirs.

There are merits in ensuring Kiwirail doesn't unreasonably block the entrepreneurship of other rail operators in establishing passenger (or indeed freight) services using the infrastructure taxpayers now own - but to spend much time or money investigating the merits of long-distance passenger rail is wasteful.  Meanwhile advocates might want to use existing services much more frequently and demonstrate they are willing to spend more time travelling than other modes, before they call to force everyone else to pay for new services.

What's wrong with Kiwirail?

Kiwirail has been in the news a lot recently, many due to disappointed about it failing.  It includes the breakdown of the single track evaluation car in Wellington (and scheduling of track inspections as well), the programmed closure of Auckland's rail network to enable significant reconstruction, and the simple answer given to this is that it is a failure either of rail privatisation (which was reversed partly in 2001, 2003 and ultimately 2008.

In 2001, the Clark Government bought the Auckland rail network for $81 million, in 2003 it bought the rest of the rail network for $1, but with a $44 million investment in TranzRail (and the buy back of the network then included a monopoly being retained by TranzRail). Finally in 2008 the entire business was bought for $690 million, which was well above the market price at the time.

So there have been 15 years of state owned enterprise Kiwirail, which is exactly how long the privatised NZ Rail/TranzRail existed for, but some pundits still claim that all of the problems stem from privatisation. Surely government ownership is meant to fix everything, after all the country had government owned railways for well over a century beforehand, weren't they wonderful?

To some extent there is some bad luck with a few incidents regarding Kiwirail, but it is pretty clear the incentives around the company are very mixed indeed.  

For example, Auckland the commuter trains are owned by Auckland Transport, although they are operated by Auckland One Rail, a train operating company contracted by Auckland Transport to operate the trains for eight years (starting 2022).  The rail infrastructure is owned by the Crown through Kiwirail, but the stations are owned either by Auckland Transport (Waitemata, Newmarket and New Lynn), or a mix of Auckland Transport (for the buildings) and Kiwirail (for the platforms). Of course the train services themselves are subsidised by Auckland Transport as the contractor, which gets 40% of its funding from Auckland ratepayers with the remainder from Waka Kotahi (i.e. taxes paid by road users).  Fare revenue only recovers around 30% of the costs of operation in normal times (whereas at present taxpayers are halving that to 15%).

In Wellington, it is similar, with the commuter trains owned by Greater Wellington Regional Council, operated by TransDev, with infrastructure owned by a mix of the Crown through Kiwirail and the regional council (Kiwirail owns the track and the main railway station, the regional council owns the other stations). 

The railfreight system is all owned by the Crown through Kiwirail, as is the long distance passenger rail system.

However, what isn't widely known is that whether it is Kiwirail's freight trains, or the commuter trains operated in Auckland and Wellington, that the Track User Charges paid for trains to operate on the tracks don't go to Kiwirail, they go to Waka Kotahi.  This bizarre situation is the brainchild of the current Labour Government.

Instead of Kiwirail getting its day-to-day operating revenue, for maintaining the track and related infrastructure from the trains operating on the network (whether its own trains, or in Auckland and Wellington the commuter trains contracted by the relevant authorities), the Track User Charges, set by politicians, go to a central government bureaucracy - Waka Kotahi - which then gives Kiwirail money to maintain the tracks, based on the Rail Network Investment Programme.

So Kiwirail's infrastructure business is not paid based on trains operating, but paid on whether it can convince a bureaucracy, guided by Ministers, to give it the money it requests for its network. Michael Wood and Grant Robertson have broken the link between use of the track and being paid for the track.

Of course this replicates the road network, but road funding has always had that separation and the separation is an artifact of how motor vehicles are charged to use the road network. Because all petrol-powered light vehicles pay petrol tax, it is impossible to reliably link your car to what roads you drive on, so the revenue from petrol tax is all collected by Customs, and handed over to Waka Kotahi to fund road maintenance and improvements.  Road controlling authorities (Waka Kotahi for the State Highways and territorial authorities for local roads) have to bid for funding from Waka Kotahi (yes you noticed that?) for road maintenance.

However Kiwirail's network isn't like that.  It is effectively a controlled private network as Kiwirail knows exactly what railway vehicles are on its tracks at any time, and charges them Track User Charges, which could be based on whatever it needs to charge to maintain and develop its network. Indeed if the track infrastructure was run as a separate business, setting its own Track User Charges, then it would expect to not get paid if it didn't enable trains to operate.

That's not what the Government has done, it has disconnected payment to use the tracks from the provider of the tracks, which is a retrograde step.  Every other piece of effective infrastructure operates with user pays. Airlines pay airports fees for landing, taking off and parking aircraft at terminals and on their tarmac. Shipping companies pay port companies fees for docking and other services. Indeed if structured appropriately, as in some other countries like Austria, Czechia, Japan and Slovenia, there is no reason why trucking companies and motorists couldn't be paying to use the roads directly to road companies.

However, the Ardern and Hipkins Government has chosen to weaken the link between providing rail infrastructure and getting paid for doing so by customers, by Kiwirail getting paid by Waka Kotahi instead.  $1.2 billion is being spent by Waka Kotahi to Kiwirail to maintain and develop the rail  freight infrastructure, of which $834.4 million comes from general taxpayers (the remainder from the National Land Transport Fund, which Track User Charges are paid into).  Not only that, unlike the National Land Transport Programme (which outlines the road and public transport projects funded from the National Land Transport Fund), the Minister has to approve the Rail Network Investment Programme.  It's a highly politicised funding system. Kiwirail has to respond to what the Minister wants, not what its customers want, in relation to the infrastructure.

It's worse than that of course. Because Kiwirail runs two businesses, an "above rail" business (hauling freight, carrying long-distance passengers and running rail ferries), and a "rail infrastructure" business (providing the tracks, signals, etc so trains can operate on them), it will prefer the "above rail" business which it directly gets revenue from. Consigners of containers on freight trains pay Kiwirail directly, which it then includes its accounts (even if it has to pay Track User Charges to Waka Kotahi).  Whereas the train operating companies running Auckland and Wellington commuter trains don't pay Kiwirail directly at all for the tracks, but pay Waka Kotahi.

Bear in mind also that Kiwirail, as track provider, has a literal iron grip on access to its network for competitors. Now there may be a low chance of a rail freight competitor emerging, because of the high cost of acquiring rolling stock, but likewise if another business wanted to operate say a passenger train from Christchurch to Dunedin, then Kiwirail could effectively decide whether it would let it do it.  Kiwirail's "rail infrastructure" business is not incentivised to try to find a way to let a new customer use its network because it wont get paid for it, but it's incentivised to do what works for its staff and contractors, and for its own trains.

One can argue about whether enough taxpayers' money was put into the rail network since it was renationalised, or whether it is good value for money at all. After all, why should the rail freight network not pay its own way, given trucking companies pay road user charges, which fully fund the state highway network?  However, if the government is going to keep owning the railways then maybe it should follow a model seen in some European countries.

Split it up.

Have a Kiwirail holding company for oversight of the assets (including the land held by NZ Railways Corporation), but have three separate companies underneath it:

1. A railway infrastructure company. Have it receive Track User Charge revenue directly and let it charge what it needs to do to maintain its network.  If the government wants to upgrade tracks, then it can put taxpayers' money into it transparently and have arguments in the public sphere about whether new cancer treatments are better to pay for than a faster railway line somewhere.  Ensure that company has open access, and seeks to encourage new entrants into the rail industry.  It may also include stations and freight terminals not held by local government, but also be willing to enable competing operators with access to those facilities.
2. A freight company.  Have it own the locomotives and rolling stock Kiwirail currently has to run and operate freight trains.  Arguably it should also have the Interislander as it is core to that operation, and it makes more sense than it being in the railway infrastructure company or the next company.
3. A passenger company.  It may only be four passenger trains at present, but let it be willing to expand on a commercial basis. It might even run the commuter trains in Wellington and/or Auckland if it  wins contracts to do so.  It should own the locomotives and rolling stock for passenger rail, or it might seek to lease locomotives from the freight company. 

There is an argument that there isn't really enough business for rail to have competition in New Zealand, and it may be right, but given the government owns the network, it ought to at least enable the possibility of competition. 

A hard-nosed look at railways in New Zealand would confirm that the rail freight business is the core, followed by commuter rail services (which require subsidy as long as pricing of roads at peak times in Auckland and Wellington does not target congestion).  Rail freight is about containers, logs, milk and coal, and a handful of other commodities.  

It should have nothing to do with Waka Kotahi (except its role as safety regulator), nor should Michael Wood or any other Transport Minister be deciding how much money the railways get to maintain their tracks (after all, what would they know?). If more money is going to be poured down the black hole of railways in New Zealand, it should at least be incentivised to operate trains reliably.  At present it has poor incentives, is costing taxpayers a fortune in money that will never be recovered, and has been set up into a bizarre funding structure that has no parallels elsewhere in the world.

Oh and for all of the calls to "restore" intercity passenger rail services, there isn't a business case for it, but at least if the rail business is structurally separated, those who think there is a business case for a lot more long-distance passenger rail can put their money where their mouths are (not their glued hands though). Intercity bus services and airline services are not subsidised in New Zealand, so it is appropriate that intercity passenger rail isn't either.

"Restore Passenger Rail" is a pathetic facsimile of Extinction Rebellion misanthropy

So for several mornings a group calling itself "Restore Passenger Rail" has shut down the southbound lanes of the Wellington Urban Motorway approaching the Terrace Tunnel.  This is completely bizarre stuff.

The disruption caused is enormous, not least because this is State Highway 1/2, the key route bypassing central Wellington, connecting the Hutt, Porirua and Wellington's northern suburbs to the southern and eastern suburbs, including Wellington Hospital and Airport.  Most recently they blocked State Highway 2 near Melling, making it impossible for some people to get to Melling Railway Station by car or bus.

The group is calling for passenger rail services to be returned to the extent they were in 2000, presumably excluding commuter services in Wellington and Auckland, both of which have expanded since then (Auckland has been electrified, with much more frequent services, and Wellington services extended to Waikanae, also with improved frequencies).

When asked on RNZ National, one of the spokespeople called for services to be restored as follows:

• Auckland-Wellington (which is actually operating although the overnight Northerner was cancelled in 2004)
• Auckland-Tauranga
• Auckland-Rotorua
• Wellington-Napier
• Picton-Christchurch (which is also actually operating)
• Christchurch-Dunedin-Invercargill and
• Christchurch-Westport (I think he meant Greymouth, which is also operating)

So they don't actually know what services are running.  They claim this is all about climate change and essential to save the planet.  This is completely unhinged, and if it wasn't a cause close to the heart of the Green Party and many on the left, a rational assessment of them would call their arguments misinformation and call them extremists - but no.

So let's make it clear:

1. Even if all of the intercity passenger train services that existed in 2000 were restored, the idea it would make a difference to emissions that was discernible in terms of climate impacts is absurd. Some people would take a trip they wouldn't have done before, some would have gone by bus, very few would have flown and a few would have driven.
2. Unless the trains carry several bus loads on average, every trip, they will generate more emissions than travel by bus.
3. It's all irrelevant because unlike agriculture, transport emissions are part of the Emissions Trading Scheme, within which a finite amount of emissions are available and sold as part of the price of fuel. Any shift will simply result in more emissions being available for other uses.

However I don't think any of the protestors know much about passenger trains and in fact they are just a NZ version of the Extinction Rebellion misanthropes.  They don't even know the train to the West Coast goes to Greymouth not Westport, any train enthusiast knows what trains used to run.  Of course they don't care that stopping traffic generates a LOT of additional emissions.

For all of their talk about saving the planet and humanity, one of the Extinction Rebellion founders, Roger Hallam, explicitly said he would block a road that had an ambulance with a dying person on board.

This isn't just environmentalism and it isn't really railway enthusiasm (which I have some sympathy for, because I like trains), but is hatred of human beings.  Hatred not only of their freedom of choice, but also their lives. 

What's particularly nuts is that Parliament is calling for submissions on the future of inter-regional passenger rail. (deadline next Friday 21st October).  The claim by the protestors that they have "tried everything" is vacuous empty nonsense.  This is undoubtedly the most rail friendly government for some time, and billions of dollars have been poured into Kiwirail to upgrade tracks and expand services, albeit the passenger focus has been on Auckland and Wellington, not least because most of the demand for intercity services was lost during travel restrictions under the pandemic.  

I'm not a fan of subsidising intercity passenger rail, because there are unsubsidised other modes that exist, and one of them (buses) will take some time to recover after the loss of international travel. However, I like intercity passenger rail, and if Kiwirail can develop a business case for new services, then good for them.  I was involved in reviewing intercity passenger rail viability in 2001, and the figures seen then were poor, but a lot has happened since then. The population has increased, overseas travel increased (although it may take another year or two for numbers to recover) and there may be more interest in travel  by rail, so I think there are merits in Kiwirail assessing opportunities or if it is not interested, in it being required to treat any potential private providers in a non-discriminatory manner.

but these protestors aren't REALLY interested in passenger rail. Do you really think they would stop disruptive protests if five new passenger train services were announced by the government? Of course not.

Of course not, they want attention, they want to promote catastrophism and they don't care for either the trappings of a free society to communicate their views like everyone else, or even a government that is sympathetic to their cause.

It's notable that the Government has said little about them, neither has the Green Party or Wellington's new Green Mayor, Tory Whanau. National's Chris Bishop called them "idiots" and rightly so, but maybe the Labour and Greens politicians LIKE measures that make driving more difficult, and don't want to abuse them?

They wont stop protesting until it becomes too hard for them to do so, they will block more roads and demand "action" from whatever government is in power, regardless of the action being carried out for their cause.  Because what they want is applause and approval from the like-minded, their own little network of misanthropes, and most of all, media attention so they can be interviewed, endlessly.  

This raises their social standing to have disrupted "evil" car "fascists" and drawn attention to a "righteous" cause (diverting taxpayers' money to some train services). They'll feel special and privileged, and hopefully get selected to go on the Green Party's list.

I doubt ANY of them have ridden on the Northern Explorer, Coastal Pacific or TranzAlpine trains, ever! Because it's not about trains.

It is, after all, performative, status-seeking, social misanthropy. 

The price of powering civilisation

The crisis in Ukraine and the growing embargo on buying oil and gas from Russia is, of course, creating the greatest crisis in energy since 1979. A crisis over half of the population has never experienced, and it is exposing in clear view the irrationality of energy policies in many countries from the past couple of decades.

Until recently the history of energy policy for humanity has been largely driven by a mix of scientific discovery and innovation, and market demand. As the late Julian Simon once wrote, humanity moved from using wood as a primary source of energy, towards coal in the 18th and 19th century (which saved many remaining forests in Europe from decimation), and then towards oil in the late 19th/early 20th century because of price and capacity.  This also paralleled the rise of electricity, largely generated by burning coal, oil and gas (but also some locations, like New Zealand and Norway, benefited from geography and geology enabling hydro). Nuclear emerged in the mid 20th century, but has been constrained to electricity generation (in jurisdictions not taken over by fear, resulting from hyper-catastrophising) and naval propulsion. 

As the world has become ever more electrified, the demand to generate electricity has been fed primarily by fossil fuel burning, albeit the efficiency of this has grown exponentially. The energy intensity of refined fossil fuels has meant their portability literally enabled aviation to become not just viable, but the dominant means of long distance passenger transport, consigning long distance intercontinental rail travel in the United States and Canada to leisure trips.

The economic impacts are palpable, and all of the rhetoric and hysteria from environmentalists about the evils of fossil fuels ignores what they have enabled in the standards of living for billions.  Goods, services, trade and travel are on the scales they are today because of this.

The push to slow down the effects of climate change has resulted in policies that are almost monomaniacally focused on cutting CO2 emissions at any cost. Sure, there are sound reasons to be encouraging a transition towards energy sources that create fewer emissions that contribute to climate change, but there is little point being concerned about climate change if thousands of people literally freeze to death in winter, or starve due to collapses in food production, or the inability of essential goods to be transported long distances. 

So when tyrannies control much of the energy that powers global economies, and the risks of actually going to war with them to stop their aggression are too high (due to the aggressor's possession of nuclear weapons), then cutting off access to that energy has a price, and you're paying it at the pump.

What the crisis in Ukraine has exposed is how utterly vapid and empty the likes of misanthropes like Extinction Rebellion and other environmental extremists are, because there is no easy path away from fossil fuels.  As wonderful as advances in solar and wind energy are, they still have some significant limitations.  Both require significant storage capacity to be sustainable and useful in their own rights, completely unlike fossil fuel or nuclear generated electricity.  Moreover, for most transport, fossil fuels (or biofuel equivalents) have no cost effective or feasible rivals, yet, for aviation, shipping or heavy road freight transport, or indeed many industrial processes like steel production.

One question New Zealanders might ask is what position the country would be in regarding oil and gas supply if the Ardern Government hadn't stopped enabling new exploration of oil and gas in 2017.  Removing this ban today would have no effect, as it takes years to invest, explore and gain any results, but had it happened in 2017, then there might have been a contribution to global supply. The Ardern Government has deliberately decided to constrain supply of oil and gas, not on economic grounds, not even considering national security, but to virtue signal.

The Ardern Government advanced a radical approach to climate change policy, not just to make a contribution equivalent to NZ's largest trading partners, so NZ would be in-step with those it competes with, but to virtue signal.  To cut net emissions by 50% by 2030 is not going to make a measurable difference to climate change at all, but it is all about Ardern and Shaw looking good on the international stage.  

Yet the oil and gas exploration ban does absolutely nothing to contribute to that, at all.  

The wisdom of the US in enabling unconventional oil and gas exploration has disconnected it from being too concerned about oil and gas from Russia (and the Middle East).  

Germany too, with its Green Party Climate Change Minister advocating a natural gas national reserve and to keep coal fired power stations available for energy security, is learning the value of reliable supply. 

New Zealand, on the other hand...

Auckland light rail - some thoughts UPDATED

The Government's announcement that it has chosen a nearly $15b option to build a single light rail metro line from Wynyard through the Isthmus to Mt Roskill then Mangere and the Airport utterly astonishes me, Although I obtain some schadenfreude from the urbanists upset that it isn't a street tram (in part because they WANT it to take away road space from other traffic), I remain utterly gobsmacked that the amount of money concerned and the hype surrounding what it is mean to do doesn't appear to have much concern at all from The Treasury.

On purely opportunity cost alone the idea that it is worth spending that amount on money on ONE fast tram line ought to be shades of the Think Big debacles of the 1970s and 1980s.  Sure it is easy to question whether some of the motorway projects the National Government advanced were the best use of road users taxes, but this is in another league.   If you were to put all of Kiwirail on the market, and even guarantee ongoing operating subsidies for commuter rail in Auckland and Wellington, I doubt you would get one-tenth of the capital costs of that single line - that ought to put in perspective what this is about.

What gets me the most is that the very basic pure public policy questions surrounding this project haven't been asked, it looks just like a politically driven legacy project, fueled by Phil Goff on the one hand, with Michael Wood and Grant Robertson willing to jump on the boondoggle.

Of course it has an "indicative business case", which like all massive government projects aren't business cases at all, because there is no business here. Auckland Light Rail will never generate a financial surplus of revenue over operating cost, let alone a return on capital.  Of course, large government transport projects rarely do, but the language used is instructive, because some companies will make a fortune from Auckland Light Rail, in construction and technical consultancy.  A common assumption that NZTA historically used for major projects was that 15% of construction costs were consultancy and technical advisory services, and there are multiple companies circling around that trough, after all it's over $2b in fees. NO consultancy has a commercial interest in being critical of this opportunity to obtain serious bonuses for their New Zealand operations. 

Anyway, what about this business case (PDF).

It says:

The following sets out the problems that the proposed investment in rapid transit will address:
• A high reliance on cars is adversely affecting the climate as well as increasing harm from injury and pollution
• Increasing congestion will further disrupt and lengthen travel times, threatening investment and quality of life
• Some communities have worse access to public transport connections, creating inequity and reducing social cohesion

This is frankly pathetic.  So the problems are "too much car use", "congestion" and "poor public transport connections".

Even if you leave to one side the absurdity that high reliance of cars in Auckland is adversely affecting the climate (like a child urinating in Lake Taupo is poisoning it), climate change policy is addressed through the Emissions Trading Scheme, which caps emissions from transport.  The efficient tool to address this is to lower the cap, increasing the price of fuel, so people drive less. If this is about climate change it's a monstrously wasteful way of doing it, and it wont have any meaningful impact.

The claim of "increasing harm from injury and pollution" is questionable.  MoT resources state:

and there is no evidence of increasing pollution, largely because engines are getting cleaner and there is a growing number of low and zero emission vehicles.  However, it doesn't really matter.  If you think a primary reason to build a light rail metro is to address injuries and pollution on the roads then you're a moron.  You can reduce injuries by better enforcing drink driving laws, speed limits, traffic light violations dangerous driving, not build a light metro line.

Then there is congestion.  The reason there is traffic congestion is that demand for roadspace exceeds supply and politicians choose to price that roadspace the same, everywhere in NZ at all times. Price it higher at peak times and locations and congestion will ease. Price the roads properly and there is more space for buses, and buses can run more frequently and reliably, but that's not exciting for politicians.

Building a light rail metro wont ease congestion, although it WILL provide a fast link, given that passengers are forecast to not be willing to pay more than a small fraction of the cost of building and running it, suggests they don't value time THAT much, and more importantly, that congestion isn't bad enough for them to pay a lot more to avoid it. 

"Threatening investment" by whom? If you think Auckland Light Rail will relieve congestion across Auckland you're a moron, in fact you're a moron if you think it will relieve congestion on the corridor it will serve too.

Finally there is the badly worded "Some communities have worse access to public transport connections" worse than what? This is no doubt true in some form, but do you really think $15b is best spent on a single light rail metro line when you could almost certainly spend a tenth of that on frequent cross-city buses and bus priority measures to seriously uplift the city's public transport network? 

After all this connection will be nice for people in Mt Albert and Mt Roskill wanting a quick trip into the CBD (remember only 13% of Auckland jobs are in the CBD), noting that Mt Albert already has a railway station connecting to the City Rail Link underground electric railway under construction.  Who wants to go from Mt Albert and Mt Roskill to Onehunga and Mangere? I doubt many do.  From Onehunga, the light rail metro will probably be slower than the existing train service, and from Mangere it is quite the indirect route to the CBD, but it is good to get to the airport.  Remember that, this will be a slow route from the airport into the city centre, but be marginally useful from Mt Roskill.

Then take this utter drivel from the "business case":

Using public transport to travel from Māngere to the city centre takes more than twice as long than using a private vehicle. As a result, private vehicles account for 85 percent of all journeys to work by Māngere residents

According to the census (using this remarkable visualisation), the number one destination for people from Mangere Central to work or school is Auckland Airport

It's a logical non-sequitur to claim that because it takes twice as long to go by public transport to the city centre than by car that this means that most journeys to work by Mangere residents are by car, because in fact only 5% of them actually work in the city centre.  

So when it estimates that nearly 32m rides will be taken on this line by 2051 you have to take it with a pinch of salt.  In 2019 there were 103m rides across ALL railway, bus and ferry routes in Auckland, so to expect ONE line to carry about a third of that is ludicrous. For that travel it is going to cost $109m a year to operate, so it needs to charge $3.40 per fare to break even on operating costs, but that's not going to happen is it? It is meant to have the capacity of 32,600 people per hou, this is not far short of London's Victoria Line (at 37, 226), does anyone seriously think that EVEN with intensification there is going to be that level of demand on this line?

So given THOSE problems to solve, Auckland Light Rail is an abject failure, it doesn't address any of these effectively.

So I'll make some not-so-bold assertions, that I would happily have refuted:

1. Auckland Light Rail will make next to no impact on traffic congestion (and the business case ADMITS this on pg. 59. 
2. There isn't going to be continuously growing demand for travel on this corridor to and from the CBD.  In fact, Covid19 and changing work trends mean that the norm will be that people wont be in offices five days a week, which completely undermines the case for large scale peak transport capacity in cities
3. For 1% of the cost of this project, there could be some significant improvements in bus reliability and travel times along corridors, with bus rapid transit, bus priority measures at intersections and use of road pricing
4. For 3% of the cost of this project, Auckland could have an interconnected cycle lane network across the whole city
5. For another 6% of the cost of this project Auckland could have a comprehensive network of bus lanes and bus priority measures, higher frequency services AND payment using contactless debit and credit cards which would address all of the social issues, and encourage people to drive less.
   
6. Auckland Light Rail not only wont and cant stop urban sprawl, but also is unnecessary to support housing intensification, primarily because most jobs are still not going to be anywhere along the proposed corridor.  Furthermore, housing intensification along the corridor will have a marginal impact on housing pricing
   

and no, there is even LESS point building the slow tram along the street that the Greens want, because they mainly want it to take away road capacity.  Tradespeople, freight and delivery are unimportant to them, it's just the war on driving, so that rightfully has been dismissed.

Auckland Light Rail is an incredibly expensive folly, it isn't transformative (but the money it costs COULD be transformative in more subtle, more geographically spread and more effective ways that aren't so exciting to politicians) and it is almost certain there wont be anywhere near enough demand to justify it. 

Fares wont pay a cent towards its capital costs, and even property taxes that could be levied to pay for it, wont pay for more than a small fraction of the project. Ratepayers aren't willing to pay for it, and there isn't enough money raised from motoring taxes to pay much towards it either. It needs to be scrapped, and Auckland transport planners (and both Auckland and national politicians) need to focus on how to make existing networks work better, rather than the exciting fetish of a big shiny high capacity boondoggle....

UPDATE:  Of course taxpayer-funded radio (RNZ) discusses light rail with a critical view from.... the Green/left perspective.  The argument Matt Lowrie from the urbanist blog Greater Auckland is partly opportunity cost (it's cheaper to build a slow tram than a fast metro, so there is money to spend on... more slow trams), but then he's quoted as saying it is needed for Wellington, Christchurch, Hamilton and Tauranga? It's economic insanity, but why should anyone be surprised that state radio regards a different perspective to only be from its own tribe of Green Party supporters.

NZ political parties: Having low expectations in 2022

Given I have been in a summery mood to write, I thought I'd pontificate on NZ political parties for 2022, across their past performance and future prospects.

Labour: Labour has "kept us safe" (it says), has propped up the economy through massive borrowing and embarked on a radical programme for change, albeit not one ambitious enough for the leftwing Twitterati.Whether it be replacing the RMA with similarly planner oriented legislation, de-facto taking water out of territorial authority control into a part-Iwi governed quango, merging RNZ with TVNZ, radical interventionism for climate change whilst mostly ignoring the ETS, embracing critical race theory in social policy, introducing a de-facto capital gains tax for investment properties, growing the welfare state and dramatically growing a client-state of artists, writers and other creatives (which the Taxpayers Union has been gratefully Tweeting on).  

This keeps the base happy, makes the Greens look irrelevant (they are), and proves above all that Labour IS the party of change and reform in NZ.  

Labour MPs don't waste their time in power, they use it turn the country left, towards more government, more taxes, more spending, more regulation, more public servants, greater embrace of identity not individual based policies, and to further cement the dominance of the professional provider unions in education and healthcare. 

Labour's greatest asset remains Jacinda Ardern. Women love her in quantities that are difficult for other parties to counter, and as long as she commands that demographic, Labour will be able to scrape together a third term, albeit never again on its own. 

The biggest risk is non-performance. Housing is a disaster that may only stabilise at best, and then again only if immigration remains zero and construction continues to surge on. Inflation may or may not get out of control, and if it does, expect high interest rates to decimate some businesses, farms and mortgage holders. However, Labour has one main trick to play - smear the other side as "nasty mean people who don't want to give out as much money as we do, and be kind".  After all, the narrative that National would have "literally" killed thousands because of it questioning Covid policies, will play well for many, but only so much smiling and nice words can be a response to giving preferences for a foreign DJ to enter NZ three times in a year for "economic reasons".  

With performance on most measures beyond Covid and propping up the economy through borrowing looking poor, the other risk for Labour is looking out-of-touch and elitist. It looks like a Government that grants favours to favoured groups and individuals, because it IS. The party for the working people that is more looking like the party for its friends in entertainment, sports and media, professional elites (through unions) and civil servants. However, to lose, people have to believe in a viable alternative...

National: After a year of self-evisceration and internal soul searching, along with some poorly drafted attempts at steering politics in various directions, it has a new leader and a fresh start.  Luxon is an asset because he isn't tainted with past government performance, but what can National offer a tired public? Despite his valiant and indefatigable efforts, Chris Bishop is unlikely to convince enough people that the Government has performed poorly on Covid, although he certainly can grab the constituency of those stuck abroad whilst Labour grants MIQ spots to minstrels and thespians. 

National can play tales around government waste, and there is plenty of it about, with concern over the cost of living and inflation. It can try to argue that educational standards and dropping or the old right wing favourite of being "tough" on crime. It has chosen to take the side of local government on Three Waters as it hasn't the spine to argue for a better model than a modified status quo, and its arguments over Māori issues are woeful for their lack of clarity, when much of the public is crying out for a reassertion of belief that liberal democracy should be one person one vote, rather than Iwi co-governance.  It has shown little interest in arguing that the climate change agenda of the government will not only harm agriculture but inflate the cost of living.

National's instincts are, like most conservative parties, to argue that Labour is changing things the wrong way and National will reverse that. National rarely offers contrary agendas to turn back the tide towards more government and more regulation, because it is too desperate for power and too scared of principles to rebut Labour on not just the means, but the ends.  An example is its opposition to the light rail project in Auckland, but the criticism is that "nothing has been done about it, but reports". By what intellectual contortion can you both oppose a project AND oppose it having not been advanced?

Competence with the economy, competence with healthcare, addressing crime and cutting waste are themes National might take on, as well as brushing aside Labour's obsession with identity politics. It would be nice if National actually stood for reversing some of Labour's policies, wouldn't it? 

Greens:  The Greens are part of the government, but really rather invisible. Which may be for the best.  Labour has embraced the Greens on environmental policy and identity politics, with the Greens basically standing for MORE spending, MORE taxes and MORE bans of stuff they don't like.  The Greens want a wealth tax, so they can spend more on stuff they like (like higher benefits, trains and high-status trendy "new Green" businesses), and want a much more enveloping big mother state. James Shaw is the reasonable face of a group that includes outspoken and out-of-touch far left radicals like Ricardo Menendez-March the Marxist Mexican and Israel hater/defender of genocidal rabble rousers Golriz Gharaman.  The more they speak the more votes the Greens lose, but for now, the Greens have a core leftwing base, and with Chloe Swarbrick as an electorate MP, will feel more secure than before electorally. What's hard is selling what the point of the Greens are, when Labour embraces so much of its agenda? However what's easy is that most of the media give the Greens a very easy ride, and don't confront what is a radical socialist identitarian agenda that wants a big state in terms of spending, regulation and interference in people's lives and businesses.

ACT: Paradoxically, in policy terms ACT has never be LESS libertarian, but with its most libertarian leader (it's all relative though). ACT hasn't put much of a foot wrong, so the key is to remain outspoken on the issues the Nats wont deal with.  Confronting identity politics and being tougher on crime, along with government waste ought to be a core mix of libertarian and conservative values, with Labour's attempts to weaken freedom of speech being front and centre. Given National almost always is unwilling to take on Labour on principle and present radical policy ideas, ACT should take this role.  Three Waters?  Just say no to the status quo, and require councils to commercialise water, invoice consumers and cut rates proportionately, and put shares in the hands of ratepayers directly. Education? Let charter schools expand, and convert public school governance into a fully devolved model to fund all costs, including teachers.  Healthcare? Tax deductible private insurance to relieve the public sector, and focus the public sector on emergency and chronic condition care. Forget poorly targeted stunts like sharing a code for Māori to obtain vaccinations, and instead sponsor useful research into addressing social issues based on cause and need. ACT should be the party that says what National is afraid of saying, that free enterprise works, that personal responsibility is critical to a healthy functioning society, and that treating everyone as individuals with dignity is better than the identitarian view of people as either oppressed or oppressors.

Te Pāti Māori: Radical ethno-nationalists that have done well to promote their vision that the New Zealand Government is a racist white supremacist project that continues to engage in genocide against Māori, and unless it dismantles liberal democracy and institutes a Parliament whereby Māori have half of the seats and Pākeha the remainder (and which dismantles other white supremacist institutions like property rights), then Māori will always be "colonised".  It would be laughable if it didn't get people elected to positions of power. Labour might need Te Pāti Māori after the next election, so don't laugh too much, but the absurd positions stated by its two MPs from time to time need to be highlighted and laughed at.  

Emissions Reduction Plan on transport isn't really about cutting emissions

With the NZ Government releasing its draft Emissions Reduction Plan that it intends to present at the COP26 conference in Glasgow, it's worth reviewing what the Government wants to do to us so it can proclaim bountiful levels of virtue signalling, although New Zealand's significance at this is vastly exaggerated by its politicians. This is all about the USA, China, India, the EU, Russia and Brazil after all

I'll leave aside for now whether the target of "net zero" will actually generate any net benefits or not, for now take it as given that the Government wants to reduce greenhouse gas emissions (GHGs). I'll also just focus on the transport policy proposals.

There has been much wailing from radical environmentalists about how weak it is, which you might think means you should be relaxed about it. However, you should not, at least in terms of transport policy.

You see it was some years ago that the only economically rational intervention needed to reduce emissions in transport was introduced – the Emissions Trading Scheme (ETS). The ETS effectively puts a cap on emissions across around 50% of NZ’s emissions, including all domestic transport emissions. 

If you fill your car with petrol or diesel, part of the price includes the cost for fuel distributors of buying emission units that you effectively use when you burn fossil fuels.  There is a fixed supply of these units, and Government policy is to reduce this supply over time (although there was a blip lately), so the price will go up. 

As the price goes up, businesses and consumers respond, which for transport means they might change the vehicle the own or use, drive less, drive differently, change modes of transport, or just pay up and save money elsewhere.  

These changes would mean the vehicle fleet would change, or there would be more use of public transport (putting fare revenue up), or more walking and cycling (increasingly the economic merits of improving those facilities), or there will less demand for more road capacity or carparks, or people will make savings elsewhere. As demand evolves, then so will how existing infrastructure and services evolve, as they always have.

However, nobody joins the Green Party trusting individuals and businesses to simply make the best choices and to be free. You join the Green Party because you believe it is ethical and necessary to use the power of the state to compel people to do what you think is best for them. Banning and taxing what is “bad”, subsidising and making compulsory what is “good”, the Greens are fundamentally illiberal, and this Labour Government has outsourced climate change policy to that ideology. After all, the Nnew Labour Party of Jim Anderton Jacinda Ardern is a party of the big mother state.

The proposals here represent the most radical shift in transport policy and regulation of the transport sector in over forty years, taking it away from the current model, which seeks to reflect user decisions and choice, to one that regulates, taxes and subsidises planners' choices.

So let me start by reminding you throughout all of this, NOTHING the CCC proposes here will reduce emissions without using the ETS to reduce the emissions units available (which would put up the price of petrol and diesel). ALL of these proposals below reflect an ideology of central command and control, all for ZERO net impact. 

You might think the Climate Change Commission (CCC) would be focused primarily on reducing emissions, but its strategy for transport is much more than that (p.54):

Decarbonising transport also offers opportunities to improve the wellbeing of New Zealanders. Air pollution, crashes and congestion from traffic impose a large cost on our health, environment and economy. For many people and communities, transport is not affordable or accessible. The transition could make transport more inclusive, safe, healthy and resilient, and better support economic activity. 

Now if reducing emissions was seen as generating other benefits that may be all well and good, but this rather glib statement is used to justify a level of intervention in transport policy that has been unheard of in New Zealand for over forty years.  

You might see the link between lower GHG and lower air pollution, but fewer crashes?  For example, reducing the number of road crashes by reducing the amount of driving is like reducing the number of workplace accidents by reducing the number of jobs. Less congestion could ONLY come if there were a significant drop in motorised road traffic, which starts to give you a hint about what this is really all about.

The claim that for “many people and communities” transport is not affordable or accessible is equally glib and nonsensical.  Where's the evidence? Are there chronic problems in people accessing work, school or other facilities? If so you'd think they'd be mass unemployment and businesses struggling to access labour. New Zealand per capita car ownership is amongst the highest in the world.  However, I doubt the CCC thinks owning, let alone using a car is “inclusive” or “safe” or “healthy”.

The CCC's plan focuses on three main strategies to reduce emissions:

1. Reducing reliance on cars and supporting people to walk, cycle and use public transport. 

2. Rapidly adopting low-emission vehicles and fuels. 

3. Beginning work now to decarbonise heavy transport and freight. 

SO let's start...