Thursday, March 15, 2012

Northern Gateway toll road – a story of politics over reason

Surprised at hearing news that the managers of New Zealand’s only toll road, the Silverdale to Puhoi Highway, are only now beginning to chase up non-paying drivers?

No wonder, says Liberty Scott, because the toll road was a political creation—and only “a state body can so egregiously ignore collecting money for the use of a service, when the incentives are so badly wrong.”

He tells a fascinating story of a road that cost nearly five times more than it was supposed to, in addition to a tolls collection department set up expressly to cost more to run than it was ever going to collect.

Read it and weep: Northern Gateway toll road – a story of politics over reason.

1 Comments:

Blogger libertyscott said...

Worth adding there IS another toll road. Route K in Tauranga, owned by Tauranga City Council, it's another winner. Having been turned down by central government for funding (because it wasn't worth building), the Council borrowed $45 million to build it, and levied a toll on it to pay it back. Today the debt is $60 million because it only has half the traffic necessary for it to make money. It's now looking for central government to take it over, but it's saying no.

http://roadpricing.blogspot.com/2010/12/tauranga-new-zealands-toll-road-capital.html

3/15/2012 10:07:00 pm  

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