Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Emphasis on maintenance of roading applauded


Strictly embargoed until 6:00pm Weds 28 June, 2006

Contractors applaud emphasis on maintenance of roading network

Roading New Zealand, the industry organisation representing contractors who carry out most of the country’s roading and civil work, has expressed its strong approval of Land Transport New Zealand’s 2006/07 transport budget, which allocates significant extra spending on the maintenance of the roading network, as well as on new road construction.

The 2006/07 National Land Transport Programme, announced today, totals almost $2.1 billion, an increase of 15 percent on last year’s programme. With $827 million set aside for construction, including $398 million for new works, this is good news for motorists in the battle to reduce road congestion and improve safety.

While increased funding for construction of new roads was expected, the coming year’s budget also boosts spending on the maintenance of both state highways and local roads by an average of 9 percent to a total of $803 million, almost as much as the planned spending on construction.

Chris Olsen, chief executive of Roading New Zealand, says Land Transport NZ has acted with foresight in setting the maintenance budget. ”Timely maintenance can save huge repair costs and disruption to motorists in the future”, he said.

“The reality is that while New Zealand undoubtedly needs new roads in some critical areas, our maintenance needs are constantly increasing too”, he says.

“Compared to many other countries our construction costs are low, but our chipseal roads require high maintenance, so the increased funding is very realistic”.

Mr. Olsen says the pressure is on maintenance for several reasons. First, there’s a six to seven percent traffic growth on some state highways, resulting in faster wear and tear; then there is the growth in size of the network, with a steady increase in the total length of roading requiring maintenance; and finally, there’s a move to better road surfacing using asphaltic concrete.

“Both Transit New Zealand and local roading authorities are specifying greater lengths of asphalt roads, which are environmentally more acceptable because they are quieter”, says Mr. Olsen. “Asphalt roads cost more to construct, but it’s generally true to say they require less maintenance in the long term, so they are a good investment.”

Mr. Olsen says delivery of the $827 million programme of new construction and road renewals for the coming year is well within the scope of contractors, who have been gearing for major infrastructure increases with additional plant and staff numbers.

The five-year construction programme gives contractors the confidence to continue to invest in people and plant. The $149 million increase in construction work for 2006/07 is about the same increase as last year.


About Roading New Zealand

Roading New Zealand represents the majority of New Zealand's roading construction companies. Member companies currently contract and/or build up to 90% of Transit’s work and 70% of territorial authority roading work, and have a combined turnover of approximately $2.0 billion per annum.

© Scoop Media

Business Headlines | Sci-Tech Headlines


ScoopPro: Helping PR Professionals Get More Out Of Scoop has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>

Insurance: 2017 Worst Year On Record For Weather-Related Losses

The Insurance Council of New Zealand (ICNZ) announced today that 2017 has been the most expensive year on record for weather-related losses, with a total insured-losses value of more than $242 million. More>>


Crown Accounts: Govt Books In Line With Forecasts

The Government’s financial statements for the four months to 31 October indicate the books are tracking along with Treasury’s Budget forecasts, Finance Minister Grant Robertson says. More>>


Expert Reaction: Ross Sea Region Marine Protected Area In Force

Sweeping new protections for Antarctica's Ross Sea will come into effect on Friday 1 December. After five years of debate, the marine protected area (MPA) was agreed in 2016 after a joint proposal by New Zealand and the United States... More>>