Election 2023: National leaves door open to China funding new New Zealand roads

Auckland's got sinkholes, the rest of the country has potholes, and in Wellington, National's being accused of having a fiscal hole in its transport plan. 

Just how big it is is still up for debate, but leader Christopher Luxon is open to it being filled with billions from China. 

Luxon opened up his grand transport plan on Monday and is now under pressure to open up on how he'll pay for it.

"The National Party now appears to have a $10 billion hole in their transport policy," said Prime Minister Chris Hipkins.

The Prime Minister's referring to $9.52 billion National has earmarked as coming from 'private funding'. 

But Luxon said the party doesn't have a $10 billion hole. 

It's not so much of a hole, but more of a fiscal gap and National's open-minded about filling it.

"Value capture, targeted rates, public-private partnerships, toll roads," Luxon said. 

A public-private partnership was used to build Transmission Gully in Wellington; initially privately funded, it'll be paid off over 25 years by taxpayers. 

The Finance Minister said the arrangement was a disaster.

"It took so long, it cost so much more than it should have, it was shoddily put together by the last National Government," Grant Robertson said. 

"If that's what Christopher Luxon is talking about, New Zealanders are right to be worried."

But Luxon said funders are already lining up. 

"There is $11 trillion in sovereign wealth money around the world. There is $50 trillion in pension funds around the world. They are awash with cash and they want to invest in long-term infrastructure projects including here in New Zealand."

So would a Luxon Government take money from China to build our roads? 

"We will have a National Infrastructure Agency that will weigh up each of the cases and look at the best funding and financing models to do that," he said.

China's been funding hundreds of infrastructure projects across the world as part of its Belt and Road Initiative.

Luxon leaving the door open for that to expand here, prompting conniptions from Hipkins.

The Prime Minister was asked if China should be building roads in New Zealand.

"That's quite the change in questioning," he said, before a very long pause.

"To be honest, it's not something I've looked at."

Andrew Little, the GCSB and NZSIS minister, said: "You might have to talk to other countries that have a lot of Chinese construction going on in them."

He's referring to countries - like those in the Pacific - now in serious debt to China, and assets with questionable quality. 

"That just ends up being more expensive than if you just used the Crown balance sheet to fund it in the first place," said the Greens' James Shaw. 

National's left the door open to China on roading and the Government also leaving the door open to changing up Auckland Light Rail which might not be underground anymore, but on Dominion Rd - a decision that's costing millions to develop a business case.