Gully go-ahead applauded

Updated at 8:59 am on 22 November 2012

Confirmation the Transmission Gully highway project north of Wellington will proceed is being applauded by business leaders.

the Government announced on Wednesday that a Public Private Partnership will be sought for the construction of the 27km route.

Under the PPP debt-funding arrangements, by the time the road is completed in 2020, the cost will likely be about $1.3 billion, including interest.

Opponents of the project, such as Save Kapiti and the Rational Transport Society, say it's not worth the long-term burden.

But the Road Transport Forum says not only will the road freight industry benefit from a more efficient route, those benefits will flow through to consumers.

Listen to more on Morning Report ( 3 min 13 sec )

Transport Minister Gerry Brownlee says tolling is extremely likely, as it will keep costs down. He told Morning Report any toll would be modest.

Listen to more from Gerry Brownlee on Morning Report ( 3 min 23 sec )

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