The Government says its Wellbeing Budget provides opportunities to grow and modernise New Zealand‘s economy while ensuring a just transition to a low emissions future.

Rail has huge benefits for New Zealanders‘ wellbeing, including unlocking regional economic growth, reducing greenhouse gas emissions, decreasing traffic congestion, and preventing deaths and injuries on our roads.

Budget 2019 provides a $1 billion funding boost to support a long overdue redevelopment of KiwiRail. This includes $375 million for new wagons and locomotives, $331 million to invest in track and other supporting infrastructure and $35 million to begin the process of replacing current ferries that are nearing the end of their lives. This funding package includes $300 million from the Provincial Growth Fund allocated for investment in regional rail initiatives.

Deputy Prime Minister and Minister for State Owned Enterprises Winston Peters says the Government has secured the future of New Zealand‘s national rail assets because they are a critical and valued part of the transport network.

“This funding will make KiwiRail more resilient and reliable through substantial investment in rail infrastructure, purchasing new locomotives and wagons, and beginning the process to replace the Interislander ferries.

“After 155 years of rail in New Zealand, the historic misstep of privatisation and the managed decline of the past decade, securing these assets for the future is especially gratifying,” Peters says.

Transport Minister Phil Twyford says funding in this year‘s Budget is just the first step to rebuilding rail as the backbone of a sustainable 21st century transport network, with a long-term national rail plan to be developed this year.

“Our goal is to have a stronger rail network that sees more freight moved by rail and fewer heavy trucks on our roads, as well as better public transport options to give commuters choice.

“Previous governments took a hands-off approach and left rail in a state of managed decline. That‘s why we instigated the Future of Rail review to make sure we are taking a long-term approach to rehabilitating rail.

“Our New Zealand Rail Plan will outline the Government‘s strategic vision and give a 10-year programme of indicative investments and benefits,” Twyford says.

KiwiRail will report on progress on implementing the Government‘s vision for rail, and further funding will be considered in Budget 2020.

Budget 2019 also provides $405.5 million to cover the Crown‘s share of forecast cost increases to build the Auckland City Rail Link, and finalises previous allocations of funding for the project.

The City Rail Link will provide the equivalent of 16 extra lanes of traffic into the city centre during peak times and the number of people within 30 minutes travel of Auckland‘s CBD will double. The Rail Link is the most significant investment in Auckland‘s transport infrastructure ever.

The Government is setting into law greenhouse gas reduction targets to meet the Paris Agreement goal of keeping temperature rise to no more than 1.5 degrees.  The Wellbeing Budget provides $107 million to ensure the economic transition required to deliver those emission reductions is effective, efficient and just.

Climate Change Minister James Shaw says the funding will mean the Climate Change Commission can provide the advice, guidance and monitoring New Zealand needs to reduce greenhouse gas emissions, in line with the goal of limiting global warming.

“The Budget also includes funding to implement an Emissions Trading Scheme (ETS) auctioning platform.  This is welcome as having an effective ETS is a vital component of achieving a just transition,” Shaw says.

To tackle the long-term challenge of climate change, the Government will also invest in research into cutting edge energy production.

The National New Energy Development Centre will help create new business and jobs in Taranaki while helping New Zealand move towards clean, affordable, renewable energy and away from fossil fuels.

The Wellbeing Budget invests $27 million to set up the centre in Taranaki, alongside a further $20 million over four years to establish a new science research fund for cutting edge energy technology so that New Zealand can look into the likes of organic photovoltaics, super conductors, nanotechnologies and inductive power.

Minister for Research, Science and Innovation Megan Woods says the centre will work closely with industry to test and trial technologies across a range of new energy forms such as offshore wind, hydrogen, solar, batteries, geothermal, and waste-to-energy.

Forestry plays a critical role in many of the Government‘s priority areas – enhancing regional development, supporting Maori to realise the potential of their land, improving water quality, reducing carbon emissions and creating jobs.

The Wellbeing Budget allocates over $49 million to help transform the forestry sector. Combined with existing funding, this equates to an investment of $58 million in Te Uru Rakau (Forestry New Zealand).

“The funding will allow Te Uru Rakau to increase its regional presence to ensure foresters and landowners have the support they need and will also see the agency focus on the Government‘s goal of developing a sustainable, domestic forestry workforce,” Forestry Minister Shane Jones says.

“A key part to achieving our vision for the sector will be delivering in the regions and we will see a new premises built in Rotorua – the heart of the forestry sector – showcasing the use of wood in construction and accommodating Te Uru Rakau‘s growth.”

The Wellbeing Budget provides $4 million over four years to help the Ministry for the Environment work on improving recycling and resource recovery and shifting New Zealand to a more efficient zero waste economy.

It will build on work underway to improve the data on waste and develop mandatory product stewardship schemes for tyres, lithium batteries and refrigerants. The new funding will help implement a national resource recovery programme in response to China‘s waste ban and action on single use and problem plastics.