Media Release – For Immediate Release
19 May 2006
Roading windfall will boost regional economies
The $1.3 billion increase in transport funding announced in yesterday’s Budget will provide a significant boost to
regional economies, New Zealand Contractors’ Federation chief executive Richard Michael said today.
“New Zealand’s economic wellbeing depends on the country building and maintaining a first rate roading system,” said Mr
Michael. “The sector has, in recent times, been chronically under-funded, with vital projects facing inexcusable
delays.”
Mr Michael said the Budget package provided some certainty that regional roading projects would not face further delays
because of funding shortfalls or when projects deemed more urgent were fast tracked up Transit’s rankings.
“That means that investors and businesses will be much more likely to invest in the regions, confident they will not be
let down by inferior road links,” said Mr Michael. “Clearly Auckland’s chronic traffic congestion has to be a Government
priority but it is no longer at the expense of the economic wellbeing of the rest of the country.”
He said the extra funding announced by Finance Minister Michael Cullen would go a long way to completing Auckland’s long
overdue Western ring road.
“So this package is a win-win situation for both our largest city and heartland new Zealand.”
Mr Michael said the long-term certainty the funding package guaranteed would also lead to roads being built more
cheaply.
“It will make the processes and planning for new roads much more efficient and cost effective. Roading contractors will
be able to deliver more competitive tenders because of the longer-term certainty of what work is going to be available.”
ENDS