On Friday 21/12/2012 Bill Faulkner discloses what NZTA has reported to TCC. The dreams of TCC have finally hit the reality that NZTA/Government will not 'bailout” TCC's Route-K debt of $60 million, the debt and more future losses stay with TCC!
The original 2002 TCC plan for Route-K showed 12,000 vehicles/day, that would have paid the bills and debt, NZTA peer reviewed all and said the TCC figures are grossly overstated …! So TCC borrowed all the money and did it anyway.
There were 2400 vehicles/day at the start (20% of what TCC said), eight years later in 2012 that doubled to 4,900/day (40% of what TCC said). Between 2004-2012 annual losses are $2.5-5.0m/pa, all added to the debt that has grown from $31.6 to $60+ million.
The tolls don't even pay the interest, to pay all interest and operating costs they need to double immediately. Recently Councilors were told that Route-K would be paid off by about 2029, tolls would need to triple immediately for that to happen.
TCC's new 'Bailout” plan asks NZTA to shelve SH2/15th Avenue/Turret/Causeway two-lane and instead TCC off-load the Route-K debt. Welcome Bay residents are now to pay the price for 10 years of misdemeanours of TCC.

S. Bailey, Tauranga.