1997: Interview with Transfund NZ Chair in Opus newsletter

In June/July 1997, Opus Consultants (the new name for Works Consultancy, the former Minister of Works and Development's consultancy arm after it had been privatised) produced its Momentum newsletter, which included an interview with then Transfund NZ Chairman Michael Gross.  The key points were:

• Establishment of Transfund was central to a wider range of reforms of the roading system.
• NZ's road network was seen as a model of change internationally by the World Bank
• Setting up of Transfund is expected to make the system more efficient by assisting development and co-ordination of national and regional strategies.  It operates like a private company, with the security of revenue to develop long-term strategic solutions.
• Gross said despite recent increases in funding (enabling the BCR for funding to drop to 4), the system is still underfunded.
• NZ has a low capital/high maintenance road system meaning roads have relatively short lives, and Transfund is looking how to optimise this.
• Alternatives to roading funding is to find ways to overcome the distortions of existing means of charging for road use, which doesn't address externalities such as congestion, environmental degradation and social dislocation.  Options it could fund include barging logs instead of massive road upgrades or new passenger transport systems to avoid building new road capacity, but is unlikely to provide funds for large projects like light rail.
• The forthcoming Road Pricing Study is expected to document options for road pricing and the need for decisions.  Options include congestion charging, suggesting use of smart card technology, and replacement of rats with some form of access charge for properties to access the road corridor, with registration covering the right to use the network.
• Gross thought a purely commercial model would be difficult to apply and need effort to ensure lightly trafficked rural roads were adequately funded, as urban areas generate far more income than the costs of maintaining those roads.

Momentum June/July 1997 - interview with Michael Gross