20 May 2005
Contractors welcome boost in road funding
The New Zealand Contractors’ Federation has welcomed the Government’s tangible commitment to infrastructure development
following yesterday’s Budget.
NZCF Chief Executive Richard Michael said the announcement by Dr Michael Cullen of an extra $100 million a year for
three years for roading expenditure was “a positive step – and one we applaud”.
The extra funding will be available from 2006-2007.
“Infrastructure spending is one of the building blocks of our economy,” Mr Michael said. “Reports say that congestion in
Auckland costs New Zealand $1 billion a year. We will not be able to take full advantage of the good economic times we
are currently experiencing unless our infrastructure is upgraded and continually maintained.”
Mr Michael also welcomed other business-focussed initiatives such as FTB and income tax adjustments and tax breaks for
migrant recruitment.
“Our industry has to actively recruit internationally so this will also be a benefit,” he said.
He also welcomed the changes to the way companies can depreciate assets “as long as diggers and earthmovers are included
alongside computers and office equipment”.
However, Mr Michael sounded a note of caution that Government expenditure on infrastructure – and roading in particular
– was trending downwards, with this year’s capital roading construction spend of $447 million due to fall to $368
million next year.
“As a percentage of GDP, spending on roads is actually dropping,” he said.
ENDS