Secret message may be Govt help for road tunnel

Press, 6 July 1978, Page 1

Secret message may be Govt help for road tunnel

Christchurch area local bodies have reached a crunch point in discussions about the Road Tunnel Authority’s finances and running costs.

The Minister of Finance (Mr Muldoon) sent a telegram to the Christchurch City Council earlier this week. Contents of that message have not been disclosed, but it is believed that the Government might be willing to cover the tunnel’s SSM loan indebtedness if tolls are abolished and some local authority takes over the tunnel. That is a condition that could make local bodies face a crucial financial policy decision, since they — or one of them, such as the City Council — may have to ask ratepayers to foot the bill for running the tunnel. According to different estimates, that bill would range from $250,000 to $450,000 per year once tolls were abolished. Local bodies would prefer to have the Government meet the entire cost by making the tunnel, and its approach road, part of the State highway system, under National Roads Board financial responsibility. With running costs thus out of the way, some local authority might be willing to run the tunnel and its road under delegated authority.

The City Council’s special sub-committee on the issue will meet tomorrow, then report to the policy and finance committee next Tuesday. “All I can say is that quite considerable progress is being made,” said the Mayor (Mr H. G. Hay). “But there is quite a bit of council consideration to be given to it.” Mr Muldoon wanted to clarify the position of local bodies on assuming responsibility for the tunnel. “We appreciate that progress is being made,”

Mr Hay added, “but we have not got any mandate from our council to accept full financial responsibility for the tunnel’s continuing cost.” The Government might require such a mandate before it could commit itself to any action on the tunnel. The Road Tunnel Authority already receives an annual Roads Board grant of $200,000. There has been no indication from the Government that it would boost that grant substantially to pay for running the tunnel.