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Government turns down interest-free loans for NZTA

The approach appears to have taken ministers by surprise, the Treasury paper noted that CIP didn’t talk to Treasury officials before making an approach and that the Ministry of Transport, Ministry of Housing and Urban Development, (MHUD) and Waka Kotahi all had to come to terms with the proposals in the weeks after the meeting with Twyford. In the end, Treasury, the Ministry of Transport, and Waka Kotahi all decided the Government should pass on the offer, while MHUD didn’t come to a concrete conclusion. Waka Kotahi is allowed to borrow relatively small amounts of money, but it doesn’t use any large-scale borrowing to fund infrastructure. The issue became political at the election with National proposing that the agency should be able to borrow up to $10 billion over the next decade.

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