Infrastructure New Zealand says the final Government Policy Statement on land transport (GPS) 2021 sets record levels of spending but it has missed a beat when it comes to electric vehicles.

The Government is allocating $48 billion over the next 10 years for transport infrastructure and services including state highways, rail, coastal shipping, walking, cycling, public transport and a zero road toll strategy.

Transport minister Phil Twyford says the GPS supports economic recovery by confirming investments in transport infrastructure and services to create jobs.

Infrastructure New Zealand policy director Hamish Glenn says it’s setting “a new investment benchmark” in transport spending.

Combined with the $6.8b NZ Upgrade Programme and other initiatives, transport investment will reach $55b over the next 10 years.

However, Glenn says it’s a missed opportunity for the Government to target EVs and renewable infrastructure.

“This GPS could, and arguably should, have signalled Government intentions to ‘flip the fleet’, support new transport energy infrastructure and rapidly expand electric and other renewably-powered vehicles.

“Transport remains New Zealand’s best opportunity to reduce carbon emissions and doesn’t need to just do its part, but must compensate for sectors like agriculture where renewable technologies are not yet mature,” he says.

“The Government has committed to keeping road taxes at existing levels for three years, but still expects National Land Transport Fund revenues to rise from $4.4b to $5.1b over the coming decade.

“This suggests New Zealanders will not only keep driving conventionally powered vehicles, but they’ll drive them more,” he says.

“Major improvements to transport funding and financing are a strategic highlight of the GPS, but remain under-developed in practice.

“Road pricing needs to be progressed in the next term of Government or increasing fuel efficiency will begin to undermine revenue before an adequate solution can be put in place.

“It is also essential to optimise traffic flow, thereby reducing congestion and increasing productivity.”

“Billions of dollars of real estate value is being created through investment in high quality rapid transit, but our willingness to ask beneficiaries to contribute remains disappointing.

“Failure to implement value capture policies penalises transport users and funders, many of whom, perversely, can no longer afford the inflated cost of housing near employment. It also incentivises property speculation, undermining housing affordability.

“An open mind to alternative financing is welcome, but with just $1.5b of debt against $4.5b of annual revenue, there is wide scope for Waka Kotahi to borrow more.

“A small amount of additional borrowing would be sufficient to address maintenance backlogs on both road and rail networks, improving reliability and safety.

“If transport and broader national outcomes really are the priority, all available tools need to be implemented, not just investigated.

“Pleasingly, the Government has responded quickly to industry calls for urgent maintenance work with an additional $500 million of funding for state highways,” Glenn says.

“The Road to Zero safety campaign has also seen a major boost of over $400 million per year in annual funding since the last GPS. Significant increases also flow to the rail network.

“This GPS is a major step forward, but if the Government is serious about actually achieving, rather than just promoting, strategic transport priorities it is going to have to employ the full range of tools at its disposal.”