Roading Package Will Be Welcome Boost To Sector

Media release
11 February 2009

Government Roading Infrastructure Package Will
Be Welcome Boost For Sector

Roading New Zealand Chief Executive Chris Olsen has welcomed the $142 million package of roading projects announced today by the Minister of Transport, Hon Steven Joyce.

Mr Olsen estimates the package will save up to 400 jobs over the next three years. Many contracting companies have been reducing staff numbers during the past few months due to diminishing workloads. It will also provide additional work for companies supplying goods and services to contractors.

“I commend the Government for this initiative. While some people have unfortunately lost their jobs already this package means many jobs currently under threat will be secure for the foreseeable future,” says Mr Olsen.

He says it’s pleasing that a large proportion of the package has been devoted to maintenance work on the existing network.

“Research indicates that road repairs are more labour intensive than building new roads, so funding some of the country’s delayed road works makes economic sense.”

In addition to the programmes announced, more funding is needed to fully utilise the spare capacity of contractors around the regions, he says. Transit New Zealand’s 2007 Pavement Condition Report confirmed that there is a further significant backlog of road repair maintenance work still to be addressed. This is an opportunity not to be missed for keeping the network up to scratch and creating jobs.

Roading New Zealand looks forward to increased road maintenance and construction funding being made available in the 2009/10 National Land Transport Programme to be announced in June.

ENDS

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