Road Funding Squeezed

MEDIA RELEASE
Strictly embargoed until 6:00pm 26 June 2007

26 June 2007

Road Funding Squeezed

Roading New Zealand welcomes the 5% percent increase in road maintenance and construction funding for 2007/08 as announced by Land Transport NZ today, but is concerned that it appears to fall short of that required. Roading New Zealand calls on the Government to provide funding certainty for road maintenance as it does for road construction.

Earlier this year the Ministerial Advisory Group’s Report into road costs found that over the past four years construction and maintenance costs had increased by around 40%. The Group found these increases of about 10% per annum to be largely justified and unavoidable due to global inflation and demand.

Roading New Zealand’s Chief Executive, Chris Olsen, is particularly concerned about the level of maintenance funding announced. “New Zealand’s roading system has been built using low cost construction materials” he said, “It requires a high maintenance costs regime to keep it in tact. We need to preserve the integrity of the roading network to ensure it continues to function as the public expects”.

At present the maintenance of the network is under considerable pressure. Motorists are expecting and demanding higher quality road surfaces that reduce road noise and reduce construction delays. The number of heavy trucks pounding the network continues to increase with more and more emergency remedial work needing to be carried out due to storms and flood damage.

The Government has recently provided funding certainty for construction projects and this has seen the sector successfully gear up to deliver a substantial increase in road construction. Roading contractors now employ 50% more people than they did 4 years ago.

Mr Olsen thinks its time the Government provided funding certainty for maintenance as well to ensure the roading network continues to operate at levels of service expected by the public and motorists.

“Maintenance funding levels need to be guaranteed to meet these needs and expectations”, Mr Olsen says.

ENDS

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