There will not be enough money in the National Land Transport Fund (NLTF) to pay for Let’s Get Wellington Moving’s (LGWM) big projects like a second Mt Victoria tunnel and mass rapid transit, it has been confirmed.

It comes as Wellington City Councillors yesterday voted to push ahead with some of the $7.4b transport plan’s smaller projects like removing cars from the Golden Mile.

New Transport Minister David Parker said his predecessor Michael Wood was advised of the funding issue earlier this year.

“On 16 February 2023, the former Minister of Transport, Hon Michael Wood, received a letter from the Board Chair of Waka Kotahi NZ Transport Agency indicating that the forecast future NLTF funding is insufficient for implementation of the Transformational Programme of LGWM,” Parker said.

“Funding for future phases of work beyond the current NLTP period (2021-24) is still to be confirmed and will be subject to prioritisation and funding availability.”

It was initially expected LGWM could be paid for from the fund, but costs have since increased and the fund has come under “significant” pressure.

In December last year, Treasury officials said “it is possible” the Government will be asked to top up LGWM. By May this year, the wording had changed to “it is likely” this would be required.

The nature of the Waka Kotahi letter was revealed in response to a written parliamentary question by National’s transport spokesman Simeon Brown.

Parker’s office declined to comment further on LGWM specifically.

A spokesperson for his office said the Ministry of Transport has been commissioned to develop a national approach to funding and financing rapid transit given the pressure on the NLTF, large upfront capital costs, and the current ad-hoc approach to funding.

“The Ministry is currently developing potential funding options for Cabinet’s consideration. Officials are looking at the appropriate split of costs between central government, local government and other groups that benefit from these projects.

“The Ministry briefed the previous Minister of Transport on progress on this work, and options will continue to be developed.”

Brown said it was now abundantly clear LGWM has lost its way.

“While a majority of Councillors might still have confidence in LGWM, it has simply become an incredibly expensive talk fest which has not and cannot deliver for Wellington.

“It has become a joke around the country that the only project delivered by LGWM is an overpriced pedestrian crossing. National has a track record of delivering major transport projects and will do so again if elected in October.”

Yesterday Wellington City Councillors voted down a bid to declare no confidence in the transport plan and they did not support withdrawing the council’s funding agreement either.

Parker fronted a select committee meeting that same morning where he was asked by National’s infrastructure spokesman Chris Bishop about “the big vote” and whether he had confidence in where LGWM was heading.

Parker said he did have confidence.

“Also to respect local democracy, they’ve got a contentious vote ahead of them but it’s their vote, not mine.”

The council has faced fierce opposition to the Golden Mile plan from some businesses, who wrote an open letter to Mayor Tory Whanau earlier this week.

“This initiative will do nothing to enliven the city centre. After the shocks of recent years we’ve gone quiet,” they wrote.

“Turning our main artery into little more than a bus lane will not bring in people and help us recover. It will do the opposite.”

But Whanau said the project to revitalise the Golden Mile is what transformational change looked like.

”It will create a beautiful and pedestrian-friendly CBD that will attract people, workers, and shoppers. It will make our buses more reliable. It is estimated to deliver hundreds of millions of dollars to benefit our city.”

Georgina Campbell is a Wellington-based reporter who has a particular interest in local government, transport, and seismic issues. She joined the Herald in 2019 after working as a broadcast journalist.