Let's Get Wellington Moving project 'a bit of a disaster' - minister

The decision to scrap Let's Get Wellington Moving has come from the recognition it was a "bit of a disaster", the infrastructure and housing minister says.

On Sunday, ministers and local government announced the $7.4 billion project, aimed to improve Wellington's transport network, would be dissolved.

It was also announced the government would fund a second Mount Victoria tunnel and upgrade the Basin Reserve.

Wellington City Council would take over the Golden Mile project in the retail area, and make bus corridors a priority.

Infrastructure and Housing Minister Chris Bishop told Morning Report Wellington officials were "exhausted" by the ongoing back and forth about Let's Get Wellington Moving.

"I there there's a recognition, frankly, that it's been a bit of a disaster."

A lot of time and money had been spent with little progress, and the new government provided the chance for a reset, Bishop said.

Bishop said there was "not much dispute" in Wellington that a second tunnel was needed.

The current one was old and greater capacity was needed out to the eastern suburbs and airport.

Congestion issues would be helped by four lanes at the other end of the new tunnel, he said.

Work would not begin until 2026 at the earliest.

Bishop said there was a lot of work to do and consents to go through but the government was "extremely committed" to the project.

"It's a key priority for the National Party and the coalition government."

Wellington mayor Tory Whanau said she had been a long-time supporter of Let's Get Wellington Moving so was naturally disappointed when it was scrapped.

"However, we've had a very constructive meeting with the government, with Minister Brown and Minister Bishop and we've actually come to a middle ground which I'm really pleased about so being able to retain the Golden Mile with the commitment of funding and commit to urban development around the second tunnel, as well as some bus priority work, it is a bit of a win.

"While I am disappointed to see the programme go, some of that work is still going to be used which is a good thing."

Whanau told Morning Report the Golden Mile was the council's "bread and butter" and moving it in-house would help speed up the process.

She had asked her team to see if there was a way to find savings and get the project moving earlier than originally planned.

She was keen to get "some shovels in the ground" and provide residents with a timeline and certainty about what would be delivered.

"The difficulty with dealing with a third party is that it just took a lot longer to get that information. Now it's going to be a lot more instant, we're going to have a business advisory group established so we can have that direct conversation about what's happening and we can keep businesses on board with what's actually happening."

Whanau said she still opposed a second Mount Victoria tunnel - and had let the government know.

She was still committed to providing projects like light rail, but had accepted that it was not going to happen in the current term.

She confirmed to Morning Report it was not off the cards entirely, and was something that could be looked at in future if there were to be a different government.

There was still a detailed business case that was of value, she said.

Prime Minister Christopher Luxon said the project had been an "expensive flop".

"I think Wellingtonians have paid over $160 million on consultants so it was very good, three weeks into our government, to sit down and get to an accommodation with the Wellington City Council and also the Wellington Regional Council.

"I think we've got to a very good place, where we've said, 'look let's abandon Let's Get Wellington Moving'."

He dismissed the idea that scrapping the project contributed to the 'stop-start' nature of infrastructure projects.

"I don't make any apologies [about scrapping projects like Let's Get Wellington Moving] because they're phantom projects, they haven't been happening."

Greater Wellington Regional Council chairperson Daran Ponter said he was relieved it was over and he had less hair as a result of it.

Ponter told Morning Report it was more a waste of time than money and New Zealand did projects like this one "very badly".

He said the public cannot understand why such projects take so long, and it was difficult to explain why.

Dissolving the project but still keeping key features such as the new tunnel, Basin Reserve upgrade and Golden Mile plan was the best outcome that could be expected under the circumstances, he said.