18 Mar 2009

Fears Auckland transport projects will stall

5:25 pm on 18 March 2009

Two major transport projects will halt within months unless the Government comes up with new funding for them, the Auckland Regional Council says.

The council says the Government's decision to scrap a regional fuel tax means $50 million worth of work will have to be frozen by the end of June.

The council's regional transport committee was told on Wednesday that the two projects are just the top of the $200 million list of uncertainties created by the scrapping of the fuel tax.

The council's chief executive, Peter Winder, says new trains are under construction and partly paid for, based on income from the tax which would have started flowing in July.

The Government has previously said it is committed to funding Auckland's rail electrification project, but not diesel-powered trains that are built in the meantime.

The second project without funding beyond June is the flagship railway station under construction in Newmarket.