LGNZ calls for changes in road funding to meet the needs of all New Zealand

Local Government New Zealand (LGNZ) is calling for central government to review the land transport funding pool to ensure that the funding for local roads is set at the right level, meeting the needs of all New Zealand.

At present, local government is bearing the risk and cost for nearly 90 per cent of the road network length, investing $1.23 billion in new roading infrastructure, maintenance, renewal and operations in 2012/13.

Due to demographic changes some councils are facing challenges in meeting road infrastructure costs as rating bases decline, while other regions face rapid growth that leaves rates funding alone insufficient to meet future demand on roading infrastructure.

NZTA is currently considering local government’s submissions on proposed changes to allocation of the Funding Assistance Rates (FAR), which determine how central government’s transport funding will be distributed across local government.

The Government is currently considering a revised Government Policy Statement on Land Transport Funding, which determines how much money is available to be distributed under the FAR. It will set out what the Government expects to be achieved from its investment in land transport including how large the investment will be, broadly how it will be spent and how the revenue for it will be raised.

“The national funding for local roads has been under fiscal pressure for some time and risks are now developing that investment in local road infrastructure may suffer,” LGNZ President Lawrence Yule says.

“LGNZ is asking the Government to carefully consider the size of its funding pool for land transport and to make sure that allocation of funding for local roads across New Zealand is set at the right level. It is vital that roads receive adequate investment to be functional, safe and help to realise economic benefits for all New Zealanders.

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