Media Release

Funding boost for basic infrastructure welcomed by Local Government New Zealand

14 May 2004

Local Government New Zealand welcomes the Government’s announcement that $11 million will be spent on basic infrastructure in small communities where high visitor numbers put extra pressure on services.

The announcement was made today by the Minister of Tourism, Hon Mark Burton, at Local Government New Zealand’s Zone meeting in Dunedin.

The decision to provide some councils with additional funding for infrastructure came after a study by the Ministry of Economic Development and the Ministry of Tourism highlighted the increasing demands tourism has on infrastructure in popular tourist destinations.

“This announcement will bring welcome relief to smaller councils with low rating bases who are trying to keep up with the demands tourism makes on services such as water and sewerage,” says Local Government New Zealand’s spokesperson for economic development, Mayor Sukhi Turner.

“Many popular tourist destinations are experiencing influxes of thousands of tourists each day and the local authorities in these areas don’t have the means to fund the increasing strain on the community’s infrastructure.

“Although tourism creates economic opportunities it also places considerable pressures on some local communities. Today’s funding announcement will ensure that councils continue to provide high quality services.

“New Zealand has a burgeoning tourism industry. Millions of people visit this country each year and these visitors expect top quality services. This funding will ensure these expectations are met,” says Mayor Turner.

This $11 million investment over the next three years is a significant step towards ensuring support for the smaller communities that play such an important role in New Zealand’s tourism sector.

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