Three Districts - one roading contractor

A collaborative regional approach taken by the Manawatu, Rangitikei, and Horowhenua District Councils to road infrastructure will see significant benefits for the three councils.

As a result of this collaboration the three District Councils invited road maintenance contractors to bid for work in each district or across the combined districts. As a result the councils have approved a single contractor, Higgins Contractors Ltd, to provide road infrastructure services across their districts.
Using a single contractor across the three districts will enable ratepayer contributions to be reinvested in maintaining and improving more of the road networks in each district.

“Our roads are how rural districts stay connected, it’s how we get our raw materials and products to the market, so it is very important that every dollar we spend on our roads contributes as widely as possible to our continued growth” Manawatu District Mayor Margaret Kouvelis said.

Horowhenua District Mayor Brendan Duffy said that councils getting together on this scale had been a long-time coming.

"This contract certainly gives Horowhenua District Council longevity with regard to meeting future roading needs in our own District, while Higgins is also introducing some management processes that that will bring added value to all three councils," Mayor Duffy said.

"This is a step in the right direction. It is great to see the concept of shared services being bedded in. The advantages of this collaborative approach are as much around delivery efficiencies as financial benefits."

Mayor Brendan Duffy said the advantages of this collaborative approach are as much around delivery efficiencies as financial benefits.

"There are intangible benefits that will come from this contract, such as combining efforts and resources, as well as buying power," he said.

"For instance, there is now a team of 12 to 15 roading staff across three councils, with the ability to share expertise across our boundaries.”
Rangitikei District Mayor Andy Watson said that currently Rangitikei ratepayers pay 45% of their rates towards roading and any cost-savings will mean their Council can continue to work to make sure the rate level stays affordable, while ensuring roads are maintained to a good level of service.
“For Rangitikei and Horowhenua this is a change of contractor. The Council will engage with the new contractor to look at what services could be provided from a local base and use local businesses. We appreciate the work Downers have done in the past and anticipate there will be at least the same, level of service, for the District in the future," Mayor Watson said.

The contract with the Higgins Contractors Ltd comes into effect from 1 July 2015.
ENDS

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