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ROAD REFORMS TO BENEFIT FOREIGN BANKS/CONTRACTORS
After years of preparation, the Cabinet has produced a 70 page document misnamed Better Roads, Better Transport. As in other reforms, the challenge has been to discover how to make the user pay more while creating profitable opportunities for foreign investors. In short, the proposed Road Reforms will be another social disaster waiting to happen
.Government Proposals
Roads will be administered and operated by commercial road companies. Road networks will be managed, funded and priced on a commercial basis. Road funding will be by a mixture of fuel tax, user charges and congestion pricing.
Current City and District Council areas will be amalgamated into 4 - 8 regions. Representatives from Councils will form an Authority in each region responsible as the provider. Private road contractors will compete for contracts to maintain and construct roads. There will be power to impose tolls as a means of paying for new bridges and roads as well as reducing traffic on congested roads. Petrol prices could increase by some 7 cents a litre. Diesel fuel will go up, too.
Deception in Top Gear
Selling the dodgy Road Reforms will require more skill than a rally driver The Reformers are concentrating on at least three issues. One- rates will be reduced. Two - congestion is getting worse. Three - more safe roads are needed.
A new trivial pursuit - count the number of times a Road Reformer uses the word "safety". And a free trip to Suffers Paradise to any reader hearing a Road Reformer admit that big contractors and banks will gain most. And the people the least.
About the Rates Switch
The contribution of property rates to actual roading will be abolished. That does not mean that Councils will reduce rates or landlords their rents. Increased user charges and petrol /diesel costs will increase consumer prices. Nor are farmers assured of reduced costs.
Road Tolls- a License To Print Money
The power to impose tolls on busy highways or bridges will create attractive and assured investment for bankers. They have the millions to do so.
Only very big contractors will be able to afford investment in the necessary plant to maintain and construct roads. Shell Oil is already involved. Overall, the Road Reforms are designed for Big Business to make more millions at the expense of the ordinary motorist.
Social Implications of Road Reforms
Workers and others on low and fixed incomes living in rental accommodation will fate the worst. They face increased consumer prices, increased user charges and little or no relief from any reduction in rates.
Fierce criticism has come from farmers and rural residents relying on country roads. Their concerns are the lack of social responsibility by private profit- driven corporations sensitive to the costs of maintaining access to isolated farmers.
North Shore City Council Works Chairman Bruce Levy says "there would be no incentive for road providers to encourage passenger transport use as every bus passenger, is a lost motorist, a lost customer, and a lost revenue."
The present level of control by the public and accountability of Councils regarding roads will be removed by the proposed roading reforms. Mr Lilly states that "it's unacceptable that the Government proposals put the balance of power overwhelmingly in favour of road companies, giving them much greater power than local government or even the community at large. It tips the balance the wrong way."
The Road Reforms Can Be Defeated
Already, there is tremendous opposition to the Road Reforms from City and District Councils, farmers, and community groups. The very real prospect of more foreign ownership and control of public assets with more user charges adds to peoples concern and anger.
United actions can defeat the Road Reforms.