South Island cycleways in line for state funding

LONG RIDE: The Government is stumping up $50 million for the New Zealand Cycle Trail.

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The South Island could become a jigsaw of profitable cycle tracks under government plans for operators to secure funding to chase the tourism dollar.

The Government is stumping up $50 million for the New Zealand Cycle Trail.

NZ Cycle Trail programme manager John Dunn said South Island business people, if successful, would join seven "quickstart projects" already named by the Tourism Ministry.

The two South Island quickstarts are the St James Trail – based around an 80,000-hectare North Canterbury station sold to the Department of Conservation (DOC) – and the Southland/Queenstown Lakes Around the Mountain Trail.

Applications for money are likely to come from cycleway groups on the West Coast.

There are Canterbury proposals from the Hurunui region and Mount Somers.

Other South Island cycle propositions could include a track from Mount Cook via the Waitaki to Oamaru, and one within the Nelson-Motueka basin.

Mr Dunn said the $50m funding could cover about 17 projects in total. The Government's cycleway scheme emerged from a job creation summit held in February.

Adventure South managing director Geoff Gabites said he had a gut feeling that three or four other South Island tracks would join St James and Around the Mountain Trail as economically sustainable businesses.

Mr Gabites' company specialises in the cycle sector and guiding on cycle journeys like the Otago Central Rail Trail.

The company could make money accessing the longer cycleways and giving clients added service, Mr Gabites said.

"I think there's probably another three rides of significance that will be developed. A lot of the other projects that have had a lot of thinking developed around them will act as subsidiary rides."

Mr Dunn said funding was conditional even for the quickstart projects.

Impediments, such as difficult land access along the trails, could count against funding.

The allocation of $50 million over three years would not include the 50 kilometre St James Trail, which would be fully funded by DOC. It would start in summer and was expected to be completed by late 2010.

A ballpark total funding figure for the 175km Around the Mountain Trail project might be $10m.

But the final figure for a trail, taking in Walter Peak and Kingston, would be split between the Government, those proposing the trail and sponsorship.

Most of the cycleways were likely to end up in the ownership of district councils or territorial authorities, though that did not preclude private-only ownership.

"[In general, councils] will pick up the ownership of it and they will be required to operate it and maintain it," Mr Dunn said.

The assessment criteria to get a proposal through to the next round would include meeting market demand, showcasing the best New Zealand has to offer and long-term profitability.

Money might be made by the operators through a booking site, accommodation and bike hire, though income was very difficult to estimate, Mr Dunn said.

The ministry would name the best concept projects on February 1.

- © Fairfax NZ News