Otago Regional Council has had to cut public transport trials in several areas of Otago in response to the New Zealand Transport Agency’s (NZTA) recent allocation of public transport funding.

At its meeting in Balclutha yesterday, councillors considered next steps for 20 transport work programmes planned for Otago, after 16 new service improvements the Council hoped to get underway did not receive funding from NZTA.

Earlier this year, Otago and Southland regional councils sought co-funding for a total of $1.78 billion from the Government for all transport projects across the regions but was allocated $1.4 billion – a shortfall of about $380 million. The ORC shortfall for public transport is about $9 million over the next three years.

As a result, ORC decided yesterday which programmes and projects would not now be included in its 2025/26 Annual Plan.

Changes to planned programmes and projects include:

No increased service frequencies on Route 5/6 (Pine Hill - Calton Hill) and Route 10/11 (Opoho - Shiel Hill).

No additional Queenstown ferry services.

Trialling an Ōamaru - Dunedin bus service, but not an on-demand bus service in Ōamaru or other public transport within the town

Investigating the best way to transport workers from Alexandra and Cromwell to Queenstown instead of trialling an Alexandra – Clyde - Cromwell - Queenstown bus service

Investigating a public transport option to connect Balclutha to existing Dunedin bus services instead of trialling a Balclutha – Dunedin Airport – Dunedin bus service

In Wānaka, ORC will not complete a Wānaka/Upper Clutha public transport business case but will continue to work to improve public transport services.

Staff will assess whether the changes, where they significantly differ from decisions made during the Long-Term Plan process, will require consultation through the Annual Plan process.

ORC will continue to work to improve public transport infrastructure, such as bus stops and bus shelters. However, without co-funding, the improvements to bus stops and at hubs will take longer to deliver.

Co-chair of ORC’s Public and Active Transport Committee Andrew Noone says, “Regional connectivity remains a priority for our community so it’s important that ORC continues to advocate for those connections, to contribute towards our strategic directions, and to support those in the community that need alternatives to private car transport.”

Further information

The National Land Transport Plan (NLTP)

The NZTA recently released its NLTP for 2024 - 2027 with confirmation of funding levels sent to affected organisations in September 2024.

Otago and Southland collectively sought a total of $1.78 billion in funding from NZTA’s State Highway improvement programme, for their respective 2024 - 2027 programmes of activities: $1.26 billion for Otago and $495 million for Southland.

The funding round included projects for councils in Waitaki, Gore, Invercargill, Southland, Central Otago, Dunedin and Queenstown, and the ORC.

The major focus of the NLTP is on roads of national significance, prompting a reduction in walking and cycling funding, as signalled in the Government Policy Statement released in June 2024.

As there are no roads of national significance in Otago or Southland, and funding for walking and cycling is reduced, there were significant shortfalls in the combined Otago and Southland funding bid.

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