LGNZ welcomes increased local roads funding

Local Government New Zealand (LGNZ) welcomes the Government Policy Statement on Land Transport (GPS 2015) released today, providing $38.7 billion in funding for local roads.

The document, issued by the Minister of Transport, outlines more than $3 billion allocated each year for the next decade towards the maintenance and renewal of local and regional roads, which represents an increase of $1 billion over the first three years.

The investment in land transport will help local government to address current and future demand for roading infrastructure while supporting the growth of regional New Zealand by providing better access to markets.

LGNZ President Lawrence Yule says the local government sector is a critical co-investor in roading with central government. The additional funding, along with the share from local government, will be used to continue improving and strengthening the local road network.

“Local and regional roads owned by councils across New Zealand make up more than 88 per cent of the country’s road network,” Mr Yule says.

“The increase in funding as part of the GPS 2015 is welcomed. Sustainable investment in local roads supports economic growth and productivity through provision of better access to markets, employment and business areas.”

GPS 2015 funding comes from road users through petrol excise taxes and road user charges, with an additional $1.23 billion contributed by local government in 2012/13.

The annual maximum available funding for local road improvements has been increased by 4.3 per cent per annum compared to 2.8 per cent under the GPS 2012; local road maintenance annual maximum available funding is increased by 2.4 per cent per annum, compared to 2 per cent; public transport maximum available funding is increased by 3.5 per cent per annum, compared to 3 per cent; and walking and cycling improvements is increased by 3.5 per cent per annum compared to 1.9 per cent.

Regional funds known as R-funds will expire in March 2015 and will be replaced with the Regional Improvements activity class for funding of investments outside of non-metropolitan areas with funding remaining at a comparable level as the existing arrangements.

“Our rural roading network makes a huge contribution to the profitability of the country and is crucial for the farmgate to factory process, from Northland roads that carry dairy trucks and significant tourist traffic, Southland roads which service many rural industries to Gisborne and Tasman roads that bear countless trucks shipping logs to port,” Mr Yule says.

“It is essential that local roads receive adequate investment to be functional, safe and help to realise economic benefits for all New Zealanders.”

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