The decision is part of the 100-day plan of sweeping changes the National-led government has enacted since taking office in October.
“Auckland Light Rail would have cost taxpayers NZ$15bn (£7.3bn), with advice showing the cost could increase to NZ$29.2bn (£14.2bn),” Transport Minister Simeon Brown said in a statement.
“The previous government committed to building light rail to Mt Roskill within four years of being elected. After six years and over NZ$228m spent on the project, not a single metre of track has been delivered and congestion has only worsened in the city.”
Physical works for what was to have been New Zealand’s largest transport infrastructure project started in February last year with below ground investigations to test soil and water conditions.
The project would have connected the communities of Sandringham, Mt Roskill, Onehunga and Mangere with the airport to the south and the CBD and universities to the north.
“Scrapping the expensive project is part of the coalition agreements and we have taken swift action. Auckland Light Rail Ltd has been instructed to immediately cease work on the project, and to take the necessary steps to wind up the company.
“The government is committed to delivering infrastructure that will reduce congestion, boost productivity, and create a more reliable and resilient transport network that drives economic growth.
“Our focus is on building a rapid transit network in Auckland, including completion of the City Rail Link, which was started by the last National government, and starting work on a Northwest Rapid Transit corridor, alongside other projects to deliver reduced congestion for Aucklanders.”
Brown said work was under way on rewriting the Government Policy Statement on land transport to reflect these priorities.
“The government’s decision to scrap Auckland Light Rail means that we can stop work on a project which has not delivered and get on with delivering the critical transport infrastructure that Auckland needs,” he said.
