New Wellington Mayor Celia Wade-Brown campaigned on the promise of a modern tram system running between the airport and the railway station by 2020.

It would create increased development and ease congestion, and could be partly paid for by private funding sources, she said.

But Mr Joyce said Wellington had other transport priorities, such as fixing traffic problems around the Basin Reserve and paying for its existing train system. "Frankly, if the council had additional money, we've got a big issue still here with heavy rail."

There was a lot of work to be done before the costs and benefits of light rail were known. Even if the council backed the scheme, it would be up against projects such as schools and hospitals for Government funding. "In these reasonably tight economic times, that would be pretty challenging."

Ms Wade-Brown has estimated her plan could cost $300 million to $400m but Mr Joyce said it could be higher. "Nobody has actually modelled it. They modelled the light rail costs from the railway station to Adelaide Rd ... but they didn't go any further than that, because they thought it was highly unlikely to be feasible."

Motorists would not be willing to see roading projects at the Basin Reserve or the Mt Victoria Tunnel dropped, as suggested by Ms Wade-Brown, he said.

A feasibility study looking at light rail and other public transport options for Wellington is due to start next year.

Ms Wade-Brown said the light rail plan would need to be economically sound. The Government would have to be the main funder, but private sources could help.

Greater Wellington regional council chairwoman Fran Wilde said she also saw the potential for private funding.

Mr Joyce said the idea was interesting, but some parts of the route would probably not be attractive to developers.

Source: The Dominion Post

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