17 April 2024
Northland’s plan to boost national GDP by $1.2 billion per year revealed
A four-lane expressway between Auckland and Northland will create significant economic benefits
Investment in a high-quality, four-lane expressway between Auckland and Te Tai Tokerau Northland could boost national GDP by $1.2 billion per year by 2050, according to economic modelling commissioned by the Northland Corporate Group (NCG).
NCG co-chair and Chief Executive of Northpower, Andrew McLeod says Te Tai Tokerau Northland is increasingly stepping up as a key enabler to New Zealand’s economic growth ambitions, and a high-quality, four-lane expressway is now central to realising the full potential of the region.
“Northland’s deep resource base, and location to the North of Auckland, position the region to make a substantive economic contribution, but decades of chronic underinvestment and piecemeal patchwork along SH1 has isolated the region, tarnishing perceptions of our business capabilities and capping that economic contribution.
The Government has committed to a four-lane highway alternative to the Brynderwyns and replacing the existing SH1 road infrastructure between Whangarei and Port Marsden, and Warkworth to Wellsford, with a four-lane highway.
“We applaud the Government’s commitments to date. But greater ambition is needed. Our economic analysis makes the case for a wholesale upgrade to SH1 between Auckland and Northland. Without that, we’re stuck in a loop of piecemeal upgrades creating bottlenecks and backlogs that will continue to be the chokehold on our economic potential.
“Economic modelling reveals that it’s not just the Northland business community that would be impacted by a lack of ambition and follow through. The entire country will pay the price to the tune of roughly $24 billion in national GDP growth over a twenty-year period.”
NCG commissioned NZIER to undertake an economic analysis of the proposed investment, including the results of a 2023 survey of nearly 800 Northland businesses, believed to be the largest business survey ever conducted in the region. The survey revealed that inadequate transport infrastructure was the biggest problem facing Northland businesses.
Rosie Mercer, co-chair of NCG and Chief Executive of Marsden Maritime Holdings Ltd, says the results of the survey are unsurprising.
“This report shows us the cost of road closures along the Brynderwyn Hills portion of SH1 in 2023 alone cost between $3.3m - $14.6m per day. We’re only four months into 2024 and the Brynderwyns are closed for the second time this year.
“While it’s essential that NZTA get the support they need to complete its remedial work as soon as possible, what Northland businesses really needs is a resilient, four-lane alternative to the Brynderwyns and beyond, extending along the entirety of SH1 between Auckland and Northland.
“The pathway to New Zealand’s prosperity must be interconnectivity between regions. We’ve seen this first-hand in Auckland, Waikato and the Bay of Plenty, where critical road linkages have facilitated economic growth, improved social outcomes and attracted greater residential development. We’re stronger as a nation when our cities and regions are connected.
“We have strong and capable businesses in the North, businesses that punch above their weight and hold deep infrastructure, logistics, and technological expertise. We play an increasingly large role in supporting economic growth to our South. We’re well overdue a reliable and resilient expressway to ensure we can increase that impact.”
The report identifies faster travel speeds, less road closures and diversions, greater resiliency against extreme weather events, and less car accidents as direct benefits of the proposed investment. It is estimated these could deliver $562 million per year to the region.
A Northern Expressway would also stimulate population growth and migration from Auckland, which has the potential to increase the region’s GDP by $2.1 billion by 2048, grow Northland’s tourism sector and resource-based industries, lift social outcomes and provide greater access to resources.
NCG is lobbying the Government to commit to a wholesale upgrade of SH1 as soon as possible.
“Hon Simeon Brown has indicated that projects that are of critical national significance may qualify for fast-track consenting approvals, given the fragile nature of this road corridor, that suggests to us that this route should be considered within that framework” explains Andrew McLeod.
“Our report provides the business case for why upgrading SH1 between Auckland and Te Tai Tokerau Northland should qualify for a fast-track consent under the incoming legislation. Northland deserves a transport infrastructure with inbuilt resilience, robustness and safety every step of the way. It’s time to empower the North to unleash its economic potential, for the benefit of the region and for all New Zealanders.”
NZIER’s economic modelling can be found here.
Media contact:
Emily Sayes +64 21 055 2814 | emily.sayes@pead.co.nz
About Northland Corporate Group:
The Northland Corporate Group (NCG) comprises Northland business heavyweights Channel Infrastructure NZ, Culham Engineering, Marsden Maritime Holdings Limited, McKay Limited and Northpower. Together, they have a combined annual turnover exceeding $1 billion, employ more than 3,500 people and deliver essential services to 65% of the region’s population.
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