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Monday 31 August 2009

National programme slashes Clutha roading budgets

Road users in the Clutha District face a massive $7.8 million reduction in planned spending on their roads in the next three years – an overall reduction of approximately 15%. 

This is the result of the National Land Transport Programme released last week by the New Zealand Land Transport Agency. 

Mayor Juno Hayes said the reduction in the required spending was a disastrous result for the Clutha District’s local roading network.

The government’s focus appeared to now be on state highways at the expense of local roads in rural areas such as Clutha. Unlike state highways, local roads are partly funded by rates.

“It is very disappointing that Clutha will get 15% less than anticipated, especially given an overall increase of 14% for local road funding across the country in the next three years.  Clutha acknowledges the 3.4% increase on previous budgets, but this will result in less work being able to be carried out than was planned,” Mayor Hayes said.

Council’s District Assets Committee Chairman Peter McPherson said the funding reduction was a huge blow for areas such as Clutha, which had the potential to lead New Zealand’s economic recovery through the export of primary produce and needed investment in roads for this purpose.

“About three-quarters of Clutha’s 2,916km roading network is made up of gravel roads which can deteriorate very quickly. The best highways in the world will be of no use if trucks cannot get to them,” Mr McPherson said.

“It appears that the powerhouse of the New Zealand economy - the southern rural sector – is being left in the cold as funding in other areas has been given a higher priority.”

The overall shortfall of $51 million of funding over the three year period across the Otago region has filtered down to the Clutha District’s local roading network with the following impact on planned work over the three years of the Land Transport Programme:

• Roading Renewals (resealing/rehabilitating) reduced by $3 million (12%).

• Maintenance & Operations reduced by $1.9million (13%).

• Minor Improvement projects reduced by $1.0million (30%).

• Bridge Renewals reduced by $0.5million (32%).

• The Nuggets Seal Extension has been listed as a possible project, but all indications are that due to a change in the application of the “R” (Regional) fund, it has little chance of being funded in the near future.

• Walking/Cycling (new footpaths) request has been reduced by $1.2million (66%).

• Community Focused Activities (Road Safety Coordination) has been reduced from $63K to $56K for 2009/10 with no further commitment beyond due to this activity being reviewed by the minister.

• The Special Purpose Roads budgets have been approved as requested.

Council will be assessing detailed budget allocations from the New Zealand Transport Agency and the impact this reduction will have on future roading levels of service to be provided.