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Transport Projects, Regional—Funding

Thursday 22 October 2009 (advance copy) Hansard source (external site)

Hughes5. Hon DARREN HUGHES (Labour) Link to this
to the Minister of Transport

Are the regional mayors who have said they will have less money than they had planned for to undertake transport projects wrong; if so, why?

JoyceHon STEVEN JOYCE (Minister of Transport) Link to this

No. It is, indeed, true that four mayors have spoken out and said they are getting less than they asked for. It is also true that all four are getting more than they received in the previous 3 years, just not quite as much as they thought they should have got. Overall, across the country, 17 percent more is being spent on local road maintenance and renewal over the next 3 years than in the last 3 years.

HughesHon Darren Hughes Link to this

Why did the Mayor of Napier, Barbara Arnott, say that her council will have to shelve a planned $26 million freight route leading to Napier’s port because funds have been reallocated towards the Minister’s so-called roads of national significance?

JoyceHon STEVEN JOYCE Link to this

I do not know why Mayor Barbara Arnott said that, because a number of projects are proceeding in Hawke’s Bay. In fact, Hawke’s Bay is having a 72 percent increase in State highway expenditure over the next 3 years, including such projects as the Matahōura Gorge realignment, the Hawke’s Bay Expressway southern extension, and the Waipukurau Overbridge realignment. I suppose some regions of the country would say that Hawke’s Bay is doing quite well.

HughesHon Darren Hughes Link to this

Why does the Mayor of Wanganui, Michael Laws, believe that his community will have to cut $6.5 million out of its budget because of Government transport decisions—something that will impact on things like road maintenance and road safety?

JoyceHon STEVEN JOYCE Link to this

Again, I am not quite sure why Mayor Laws thinks he is hard-done-by, because the Wanganui maintenance expenditure is increasing by 4 percent, the Manawatū-Wanganui region is having a growth in renewal and maintenance expenditure of 12 percent, and there are also significant increases in State highway expenditure in the Manawatū-Wanganui region.

BennettDavid Bennett Link to this

What has he said to mayors about their local road maintenance budgets?

JoyceHon STEVEN JOYCE Link to this

I attended the Central / Local Government Forum in Wellington this morning, and I reaffirmed the Government’s commitment, as laid out in the National Land Transport Programme release some 2 months ago—the member Mr Hughes has obviously had time to read it—that across New Zealand councils will receive an average 17 percent increase in road maintenance budgets over the next 3 years compared with the last 3 years. This is a substantial increase, and I would be surprised if councils could not meet their aspirations in an environment of declining input prices and limited private sector competition for contractors.

HughesHon Darren Hughes Link to this

Have any decisions by the Government led to a shortfall of $7 million for local roads that the community in Manukau City was expecting—something that will put pressure on the cost of living for hard-working families, whose rates might have to go up by 3 percent just to cover that gap?

JoyceHon STEVEN JOYCE Link to this

No, because the Government is committed to a 17 percent increase across the country in local road budgets. Although Manukau may be disappointed, its budget for local road maintenance is going up 11 percent over the next 3 years compared with the last 3 years. It seems slightly churlish to say they are being told to cut, because they are not. It is an 11 percent increase.

HughesHon Darren Hughes Link to this

How can so many people be wrong and the Minister be right, especially when regions and cities have been told to budget and plan road and public transport projects over a multi-year time frame? Does he not accept that his so-called funding increases really are a cut when compared to what communities had properly planned for?

JoyceHon STEVEN JOYCE Link to this

I explain to the member that it cannot be a cut when there is a 17 percent growth in expenditure. Certainly, mayors and the member opposite have aspirations and dreams beyond the increases that have been allocated. But, as we know, it is a national system and across the country there has been a 17 percent increase.

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