27 April 2011

The importance of local roads to the growth of New Zealand should not be forgotten when funding decisions are made, says Local Government New Zealand President Lawrence Yule.

Mr Yule’s comments come in response to the proposed direction of the Government’s Policy Statement on Land Transport Funding 2012/13 to 2021/22 (GPS 2012) released yesterday.

Funding for land transport is administered through the National Land Transport Programme and is primarily generated from the Government’s tax on petrol and road user charges.

LGNZ believes the fund is a shared revenue between local and central government because it’s generated from the use of state highways and locally owned networks.

Mr Yule says the GPS 2012 released yesterday proposes to direct most funding to the state highway network and roads of national significance, to the detriment of local roads.

“Once again local roads, and therefore many smaller communities, lose out to roads of national significance. But this doesn’t have to be the case.”

Mr Yule is urging the Government to prioritise road funding with the big picture in mind. He would like to see a more equitable spend which takes into account the areas from where money is generated.

“If money is coming from local roads it should go back into local roads. We need to look at our roading network as a whole. At the moment there is a focus on state highways and roads of national significance. They may well be a vital part of the network but we also need to take into account the contribution local roads make to the New Zealand economy,” he said.

“Local government’s annual contribution to improving, renewing and maintaining local roads has nearly doubled over the last decade. As a result our communities are fast nearing the limit of what they are willing and able to pay for through rates. However, this should not mean that the possibility of further investment in the local road network ends.”

Local authorities are responsible for managing 90 per cent of the road network.

LGNZ believes it is important to have a long-term perspective towards investment in the transport network which takes into account the contribution of local roads to New Zealand’s export sector and also the rising cost of fuel.

“Together with government, LGNZ would like to work towards a plan that delivers sustainable solutions for the transport network to support the growth of the New Zealand economy in the years to come,” said Mr Yule.

ENDS

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