Govt to sacrifice schools and hospitals for tar seal – Labour

Newly released advice reveals Chris Bishop’s Roads of National Significance programme has blown out to $56 billion – with hospitals and schools set to miss out.

“Information released under the Official Information Act, shows Kiwis could be hit with $500 a year in extra taxes, or the Government could pile on another $40 billion in debt. Schools and hospitals will be sacrificed for tar seal,” Labour transport spokesperson Tangi Utikere said.

“The Government’s own officials are clear: this isn’t a transport plan. It is a direct trade-off between new roads and funding for health, education, and critical infrastructure.

“Chris Bishop claimed the fiscal hole was around $30 billion, officials now say it’s closer to $56 billion – and none of that money exists.

“If the government spends over $50b for roads, hospitals will wait for upgrades and schools will miss out on investment – all while Nicola Willis talks about her ghost surplus.

“Even the value-for-money case is shaky. Officials say most projects have benefit–cost ratios under 3, and that other transport investments would deliver far greater returns.

“Ministers can laugh it off in the House all they like, this is not a future problem, it’s a massive fiscal hole right now and there’s no credible plan to pay for it.

“Labour supports a bipartisan approach to infrastructure to ensure long-term certainty and stability for the sector. However, the Government remains responsible for setting out how these projects will be financed.

“Chris Bishop is clinging to undercooked manifesto numbers and are choosing unaffordable roads over everything else. New Zealanders will pay the price through higher fuel prices, higher debt, and hospitals and schools pushed to the back of the queue,” Tangi Utikere said.