Ruapehu Arguments Over Road Subsidy Levels Find Traction

The NZ Transport Agency (NZTA) has responded to Ruapehu’s concerns over proposed changes to roadwork subsidies and the potential impact that could have on the government’s Business Growth Agenda.

The setting of new Funding Assistance Rates (FAR) each council will receive for local road works brings to an end a comprehensive NZTA review of both the approach to setting FAR levels and the decision methodology.

RDC Land Transport and Economic Development Manager, Warren Furner, said that Ruapehu and similar councils were initially very concerned that the outcome of the FAR Review would see local road funding shift away from rural NZ to large urban centres.

Ruapehu District Council (RDC) was at the forefront of arguing the position of rural territorial authorities like Ruapehu that have aunique geology, topography and climate that set us apart from other districts,” he said.
“The central theme of our argument was that the NZTA should take into account the value in terms of the export driven Gross Domestic Production (GDP) produced by rural communities when making road investment decisions.”

RDC worked at multiple levels across government ministries including Ruapehu Mayor Don Cameron leading a delegation of mayors from across the central North Island to meet with the then Minister of Transport, Hon. Gerry Brownlee, to make an urgent appeal over the proposed changes to roadwork subsidies.

“We highlighted that the key to Ruapehu and other rural districts making an even bigger contribution to the NZ economy is in opening up the productive potential of our primary producers, forestry and tourism sectors which are all dependent on having access to an efficient and effective road network.”

Mr Furner said that the final FAR just released by NZTA were good news for Ruapehu and our ability to contribute to NZ’s growth and productivity objectives.

“Whereas the initial FAR proposal was for Ruapehu’s base rate subsidy to drop from its current 60% to 53% over nine years the final decision will actually see our base rate increase to 72% by 2023,” he said.

“An additional huge win is that the Ohakune Mountain Road (OMR) and Bruce Road on Mt Ruapehu will both retain Special Purpose Road status for the next three years and along with that their 100% funding rate for this period.”

“This will enable council and the Department of Conservation (DOC) to undertake renewal works so they are both in the best possible condition before their FAR begins gradually reducing to 72% over six years from 2019.”

Mr Furner noted that while some important details are still to be finalised including the rules around severe climatic events and bridge funding the overall outcome was very good for Ruapehu’s economy.

“NZTA and central government need to be commended for listening to the concerns of councils like Ruapehu.”

“The new FAR model shows that central government and the NZTA clearly recognise the importance of rural economies having the necessary investment in their key infrastructure for NZ to achieve its growth agenda objectives,” he said.

“With roading representing around 43% of council’s annual expenditure the outcome of the FAR Review was of critical importance to the district.”

“If NZTA’s original FAR Review indications had come to pass we would have needed to take cut road expenditure quite drastically or implemented large rate increases to maintain levels of service.”

Mr Furner added that he had recently been appointed to the National Road Controlling Authority Forum where he will continue to champion the issues confronting districts like the Ruapehu.

© Scoop Media