The NZ Transport Agency (NZTA) has confirmed that Ruapehu’s Funding Assistance Rate (FAR) which sets government’s level of investment in local road network maintenance and renewal will increase from 67% to 72% from 1 July 2018.

Ruapehu Land Transport Manager Warren Furner said that the increase in the FAR to 72% was great news and would allow Council to get on top of outstanding repair and maintenance issues while addressing ratepayer affordability concerns.

“Council is now able to increase investment in Ruapehu’s road network without adding to rates,” said Mr Furner.

“We anticipate that a 72% FAR will allow Council to increase the total road budget by $2m per annum and the bridge improvement and renewal budget to $9.8m over the next ten years.

At a planned 42% of total spending for 2018/19 land transport will be Council’s largest expenditure item and a key enabler in Ruapehu’s economic and social development objectives.

We expect our rural communities to be especially happy about this announcement as many of them see Council’s land transport activity as the most critical activity in ensuring their viability and sustainability.”

Mr Furner said that Ruapehu’s FAR and had been rising by 1% per annum and was scheduled to reach the maximum FAR of 72% in five years time (2023/24).

“Ruapehu has always argued that we need our FAR set at the highest possible level if we are to maximize our contribution to NZ’s growth agenda,” he said.

“In June last year (2017) NZTA undertook an Investment Audit that looked at the level of investment Council was making in its road network against what was required to maintain it in good condition and what ratepayers could afford.

The Audit identified that Ruapehu ratepayers were investing what they could afford in our road network but this was under what was under what was necessary to maintain it in good condition.

In response Council requested that the transition to a 72% FAR be brought forward to this year (2018/19) rather than waiting until 2023/24.

The alternative if the FAR acceleration was not approved was for Council to maintain its current budget levels and need to be more reactive to work requirements possibly differing planned road maintenance if unexpected priorities arose in other parts of the network.”

Mr Furner said the challenge now was to work with our contractor partners to ensure that they are adequately resourced to deliver against the increased investment in the network we will be undertaking.

“The pressure on contractor resources for equipment and skilled people was a NZ wide issue.

The increase in our FAR support should however assist our contractors to invest in new resources with more confidence and security supported by Council contracts.”

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