Road transport industry will hold Greens to benefit-cost promise

Thursday, October 26, 2017

Green Party leader James Shaw’s assurance that all transport funding will be treated on an even playing field and that the Government will apply the same benefit-cost analysis for all transport projects is a promise that the road transport industry will keep him to, says Road Transport Forum chief executive Ken Shirley.

 “It is encouraging that the Greens are so committed to adhering to strict benefit-cost analysis in determining the suitability of future transport projects,” says Shirley. “The Road Transport Forum has always advocated for such a policy and we look forward to holding the Greens to that promise.”

 Shirley says it is also encouraging to hear that Shaw will treat all transport funding dollar-for-dollar on an even playing field.

 “That is exactly as it should be, the various transport modes must be allowed to compete for customers and freight on true comparative advantage, without the distortion of taxpayer subsidies or cross-subsidisation from other modes.

 “I hope that the Greens new lust for fiscal discipline will convince them to drop plans for a daily Palmerston North to Napier passenger rail service because there isn’t a benefit-cost model anywhere in the world that will make that stack up,” says Shirley.