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Road-building jobs cost the government over half a million each

Friday 18 February 2011, 8:55AM

By Green Party

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Graphs showing the changes between the previous Government Policy Statement on Transport Funding and the current Government Policy Statement on Transport Funding:
Graphs showing the changes between the previous Government Policy Statement on Transport Funding and the current Government Policy Statement on Transport Funding: Credit: Green Party
Graphs showing the changes between the previous Government Policy Statement on Transport Funding and the current Government Policy Statement on Transport Funding:
Graphs showing the changes between the previous Government Policy Statement on Transport Funding and the current Government Policy Statement on Transport Funding: Credit: Green Party

The Government’s “Transport Stimulus” would have created many more jobs if they hadn’t cut funding for everything else to build new motorways said the Green Party today.

“Research consistently shows that investment in public transport, walking, cycling and even road maintenance creates many more jobs than spending on new motorways,” said Green Party Transport spokesperson Gareth Hughes.

“A recent report by Smart Growth America1 found that transport stimulus spending on public transport created 70% more job hours than spending on motorways, confirming many earlier studies2.

“We can create more jobs and give people more transport options by investing in buses, trains, walking and cycling. We can create more jobs by keeping our current roads up to spec, by investing in road maintenance.

“This Government cut funding for everything else in order to build their pet motorways, most of which do not even have a return of $1 for each $1 spent on them, according to their own economic analysis.

“Motorways are built by machines and the money goes on materials, not people, so they’re the most expensive way to create jobs.

“Typically they only create 1-2 jobs for each million invested, which the Government is bragging about today. Over $330 million to create only 550 jobs.

“Unfortunately, these new motorways also won’t help our economy, because people still have to fill the tank with petrol which is back over $2 a litre to get anywhere. Electric or fuel efficient cars also cost New Zealanders money. They don’t even reduce congestion at peak hour.

“We need to be challenging Transport Minister Steven Joyce on his empty assertions that accelerating road projects is creating jobs or the best way to stimulate our economy for a clean, green future,” said Mr Hughes.

Links to research about job creation of transport projects:
http://www.smartgrowthamerica.org/2011/02/04/new-report-reveals-smart-transportation-spending-creates-jobs-grows-the-economy/
http://switchboard.nrdc.org/blogs/kbenfield/job_creation_through_smart_lan.html