Increase in Government Road Funding Welcome

MEDIA RELEASE

16 March 2009

Increase in Government Road Funding a Welcome Boost

Roading New Zealand Chief Executive Chris Olsen welcomes the Government’s almost $1 billion increase in road funding over the next three years, announced by Transport Minister Steven Joyce today.

“This is a much needed shot in the arm for the contracting industry,” Mr Olsen says.

“Not only will this increase in infrastructure funding help improve New Zealand’s future economic growth, it will restore confidence in the construction sector and may prevent or reduce further job losses.”

But he warns that projects need to proceed without unnecessary bureaucratic delays to avoid redundancies. 

“It would be very disappointing if contractors had to make people redundant only to recruit again in a year’s time,” Mr Olsen says. 

Large projects tend to have long lead times because of the required resource consents and other planning approvals.  But recent experiences show that substantial time and cost savings can be gained by involving contractors early in the planning and design phases, and beginning construction at this time where possible. 

“We have every confidence that the New Zealand Transport Agency will facilitate these projects being brought to the market quickly through methods of collaborative procurement,” he says. 

“We look forward to local authorities reciprocating with their construction programmes.”

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