Did the business case for the Te Tupu Ngātahi Supporting Growth North projects, being the package of notices of requirement lodged with Auckland Council in November 2023 for route protection between Albany and Ōrewa, quantify the cost of acquisition, compensation, interest and litigation arising under section 185 of the Resource Management Act 1991 and the Public Works Act 1981; if so, what value was assigned to those costs; if not, why not?

Answer

I am advised that the Te Tupu Ngātahi Supporting Growth North Business Case quantified the estimated costs of property acquisition required to protect the routes identified in the Notices of Requirement lodged with Auckland Council in November 2023. The total property cost estimate ranged from $693.2m (P50) to $830.8m (P95). The property estimates were developed in accordance with the compensation framework established under the Public Works Act 1981 (PWA) and include allowances for land acquisition, compensation, PWA acquisition processes, Land Valuation Tribunal (LVT) proceedings, and associated legal and valuation costs. The business case did not separately report a standalone value for compensation payable under the PWA. Rather, compensation was incorporated into the overall property acquisition estimates. Similarly, litigation and acquisition process costs were not reported as discrete totals in the business case. The business case also recognised the potential for acquisitions to occur following requests under section 185 of the Resource Management Act 1991. For most Notices of Requirement, it was assumed that approximately 20% of acquisitions would occur from the time of designation lodgement, with the remaining 80% occurring in the three years prior to construction. For the Rapid Transit Network NOR, the assumption was 40% and 60% respectively. These assumptions informed the timing of acquisitions but did not result in a separate quantified cost category for section 185 requests. The business case did not include an allowance for financing interest costs associated with property acquisition, and therefore no value was assigned to interest costs. Property appreciation was included within the property estimates.