$8.7b to be spent on land transport network

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The country's land transport network will have $8.7 billion spent on it during the next three years, the New Zealand Transport Agency (NZTA) announced today.

The funding will be managed through the National Land Transport Programme (NLTP). Projects which boost economic growth, productivity and employment have been targeted.

"This is the largest land transport investment in New Zealand's history, and it represents a 17 per cent increase from the previous three-year period," NZTA chairman Brian Roche said.

"This additional investment will deliver significant benefits for New Zealand now and in the future."

The programme invested in projects in all regions, providing guaranteed funding levels for each region over the next three years.

Most activities had funding increases, including:

* a 21 per cent increase for public transport ($899 million over the next three years);

* a 19 per cent increase for New Zealand's state highway network ($4.5b over the next three years);

* a 14 per cent increase for local roads ($1.9b over the next three years).

The programme would help to address the important challenges New Zealand faced with land transport, Mr Roche said.

Improving the efficiency of key routes, public transport, and easing severe congestion in key urban areas, as well as upgrading important freight and tourism routes, improving safety and access to markets, and to employment would contribute to economic growth, he said.

The three-year timeframe allowed for investments with a longer-term view, and for local government and the wider land transport sector to plan ahead.

Sixteen regional transport committees and the Auckland Regional Transport Authority were involved in developing the programme.

"This collaborative process has allowed us to build an overview of land transport requirements across New Zealand and to balance regional and national priorities in deciding on the best investment programme to maximise value for money across the country," Mr Roche said.

Transport Minister Steven Joyce said the programme was the largest ever investment in the system and represented a 17 per cent increase on the previous three-year period.

"This targeted investment will deliver real gains both in the short term – as we move out of recession – and in the longer term by boosting the productivity we need to support prolonged economic growth."

Labour's transport spokesman, Darren Hughes, said local roads could deteriorate.

"Hidden away in the detail of the programme is National's plan to freeze spending on the maintenance of local roads in the NLTP's second and third years," he said.

"It's nonsensical that we allow increased heavy haulage on our roads but don't back that up with a programme of maintenance."

Local Government New Zealand spokesman Peter Tennett, who is Mayor of New Plymouth, said the programme would benefit local authorities nationwide.

He cited the Wellington to Levin corridor, the Waikato Expressway and Auckland's Puhoi to Wellsford link as examples.

The three were among the "roads of national significance" identified by the Government earlier this year. Progressing them was a key priority of the programme.

The other four are completion of the Auckland western ring route, addressing Auckland's Victoria Park bottleneck, the Tauranga eastern corridor and Christchurch motorway projects.

Road Transport Forum chief executive Tony Friedlander said the programme was "commendable".

The plan provided certainty for three years, said New Zealand Council for Infrastructure Development chief executive Stephen Selwood.

Roading New Zealand's chief executive, Chris Olsen today welcomed the investment, saying it would assist economic growth.

The Automobile Association also welcomed the increased funding, expressing pleasure that Students Against Driving Drunk received $420,000 to enable it to continue its community education programme in 2010.