Jobs & Growth: State highway work accelerated

State highways have received an immediate boost of $142.5 million as part of the Government’s Jobs and Growth plan.

This funding will go towards accelerating state highway projects and boosting road maintenance and renewal work.

Transport Minister Steven Joyce says five sizeable projects have been selected for advancement because of their readiness to commence and their potential to provide an immediate boost to regional economies. The cost of accelerating the projects is $42.5 million.

Construction of four of the accelerated highway projects will begin in 2009 – the first in July – and the fifth is scheduled to start in March 2010. The projects are:

A further $100 million will be invested in road maintenance and renewal work around the country, with $34 million to be spent on projects commencing before June 30, and a further $66 million in the following two years.

This will cover smaller scale state highway projects and include safety improvements and pavement renewals.

Mr Joyce says all of the state highway projects offer strategic benefits to the greater state highway network.

“The funding of $142.5 million is over and above that available from the National Land Transport Fund, and will allow a number of key small and medium size projects to begin construction earlier than planned.

“The new cash injection will provide immediate economic stimulus in the regions and will ensure we are in better shape to grow more quickly as world demand picks up again.

“The majority of suppliers and subcontractors for these projects are expected to be regionally based, using a regional workforce and material so local contractors and their communities will benefit from the increase in work,” says Mr Joyce.

The total $142.5 million of state highway work will be distributed over the 2008/09 – 2010/11 years.

Mr Joyce says this is the first of a number of announcements to be made about state highways over the coming months.

“The Government is committed to increasing state highway construction to more accurately reflect New Zealand’s transport realities.

“The previous Government planned to reduce state highway construction over the next three years by at least 9%. At the time of the election the NZ Transport Agency was planning for that scaling down of activity. They are now having to gear up their planning and design work in anticipation of higher activity levels in the years ahead.”

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