Roading investment and pothole repairs have been highlighted in the draft Government Policy Statement (GPS) on land transport which sets out more than $20 billion over the next three years.
And it’s got the approval of the road freight industry with industry leaders saying a focus on roads and maintenance will help lift economic growth and productivity.
It sees the re-introduction of the Roads of National Significance (RoNS) programme which includes 15 projects for the movement of people and freight on four-laned, grade-separated highways. In Auckland this includes Mill Rd and the East West Link while other major projects include Whangarei to Port Marsden and an alternative to Northland’s SH1 Brynderwyn Hills.
The draft GPS increases road maintenance funding by $640m compared to the draft GPS released by the previous Government in August 2023 as calculated at the midpoint of the activity class funding ranges.
It also commits up to $2.3 billion for public transport services and $2.1 billion for public transport infrastructure over the next three years.
To address potholes, the newly established State Highway and Local Road Pothole Prevention Activity Classes will direct between $3.1b and $4.8b to fix potholes on state highways and local roads.
This includes a $500m Pothole Prevention Fund to ensure that maintenance funding is ringfenced to resealing, rehabilitation, and drainage maintenance works.
It aims for maintenance outcomes of 2% of the state highway network renewed each year and 9% of the state highway network resealed each year and increasing requirements for potholes to be fixed within 24 hours.
Transport Minister Simeon Brown released the draft GPS on March 4 and says it outlines the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely.
“Over the next three years, our investment of around $7 billion per year prioritises economic growth and productivity, increased maintenance and resilience, safety, and value for money. It balances the need for investing in new projects, while ensuring our transport system is maintained to a high standard,” he says.
The Government will not be continuing with a blanket approach to speed limits. Instead, it says there will be a stronger focus on road policing and enforcement, investing in new and safe roading infrastructure, and targeting the leading contributors to fatal crashes.
“The Government will introduce workable legislation to enable roadside drug testing, review fines for traffic offences, and review the vehicle regulatory system to better manage the safety performance of the vehicle fleet,” Brown says.
“Investment in infrastructure to reverse recent speed limit reductions will be prioritised, where safe to do so. This includes the NZ Transport Agency (NZTA) increasing speed limits to 110 km/h on roads engineered to that safety standard.”
The Government will appoint independent members to the Road Efficiency Group and refocus its efforts on finding efficiencies in road maintenance, standardising maintenance protocols, reducing expenditure on temporary traffic management, and reviewing maintenance contracts.
To balance the transport budget, it is proposing an increase to the Motor Vehicle Licencing Fee by $25 in January 2025 and a further $25 in January 2026.
It will also provide a Crown grant of $3.1b, a Crown loan of $3.1b, and a 12 cent, 6 cent, and annual ongoing 4 cent per litre increase in fuel excise duty, and RUC equivalent, in January 2027, 2028, and 2029, respectively. It will not be raising FED and RUC this term.
“I expect the NZTA to consider different ways of funding and delivering major transport investments, ensuring they make efficient use of every dollar spent,” Brown adds.
“This will likely include public private partnerships (PPPs), increased use of tolling, ‘Build, Own, Operate, Transfer’ equity finance schemes, and value capture, to generate additional revenue and deliver infrastructure in a more efficient manner.”
Alongside the draft GPS, the Government is signalling several system reforms, including shifting to a 10-year National Land Transport Programme, progressing legislation on time of use charging, and moving the whole vehicle fleet to RUC.
Local government, the transport sector, community groups, and the wider public are invited to have their say on the draft GPS with consultation closing April 2. Projects and funding commitments will be confirmed through the National Land Transport Programme (NLTP) later this year with the final GPS coming into effect by July 2024.
Restoring road network
The draft GPS on land transport is “great news” for the road freight sector and the economy.
That’s according to National Road Carriers Association (NRC) chief executive Justin Tighe-Umbers who says it’s “geared towards getting the basics right”.
Tighe-Umbers points out that 93% of goods are delivered by road so investment in roading is investment in the economy, he adds.
“That means restoring the damaged road network so it is fit for purpose, continuing to look after it, and investing in the future roads we need to support a growing economy.
“A half billion dollar pothole prevention fund sends a strong signal that getting the basics right is critical. It needs to be well targeted and it’s pleasing it is ring-fenced so councils have to spend it on roading.
“Potholes are a major problem throughout New Zealand. They are a visible sign our road maintenance is not keeping up. They are one of the most common concerns raised by NRC members.
“Transport operators want to see the Government’s programme rolled out quickly so we can get fit-for-purpose roading. We’re looking forward to working with the Government to help get this underway,” Tighe-Umbers says.
Road freight body Transporting New Zealand is also giving the draft transport plan a thumbs up, stating it will help lift growth and productivity.
Interim chief executive Dom Kalasih says the back-to-basics approach will be well received by road freight operators.
“We’re pleased to see the Government following through on their election commitments to re-start the road building pipeline, focus on the dangerous and potholed condition of our streets and highways, and avoid road user charges and fuel excise increases in their first term.”
Kalasih says that prioritising investments in roading activity classes is a necessity, given increasing pressure on the National Land Transport Fund.
“Over the past few years, our members were disappointed to see revenue from vehicle users diverted into unproductive investments in rail, coastal shipping and walking and cycling, while the condition of the roads continued to decline. It’s great to see Minister Brown committing to turning this around, despite challenging fiscal constraints.
“Transporting New Zealand will be going through the draft GPS carefully over the coming weeks, consulting with our members, and providing constructive feedback. The road freight industry remains committed to improving efficiency, safety and sustainability across the transport network,” Kalasih says.
Opposition reacts
Labour leader Chris Hipkins says the proposal to increase vehicle registrations and fuel taxes in the second term was a broken promise from the Government.
Hipkins is also questioning the price tag of the draft GPS which hasn’t yet put a dollar figure on the Roads of National Significance programme.
“I think we’ll be able to judge in the coming days and weeks as further analysis on the new GPS is done, exactly how much the hole in their costings has blown out. We knew that the roads they were proposing were going to cost more than had budgeted for before the election,” Hipkins says.
Meanwhile, Green Party transport spokesperson Julie Anne Genter says the draft transport plan will result in “more congestion, carbon emissions and high transport costs”.
“Simeon Brown is obsessed with forcing people into their cars and taking away the option of catching fast, reliable buses or trains.
“It will condemn kids to being stuck in the back of cars rather than having the freedom to get around their neighbourhoods and to school by walking or biking.
“Making it more expensive to get around by bus or train, while simultaneously cutting back on public transport investment and investment in safe walking and cycling will impact us all, but it will hurt those on low incomes the most,” Genter says.
The Govt’s 15 Roads of National Significance announced include:
Whangārei to Auckland, with the following stages prioritised:
- Alternative to Brynderwyns
- Whangārei to Port Marsden
- Warkworth to Wellsford.
Auckland roads
- Mill Road
- the East-West Link.
Tauranga to Auckland, with the following two stages prioritised:
- Cambridge to Piaere
- Tauriko West State Highway 29.
Roads to unlock housing growth:
- Hamilton Southern Links
- Petone to Grenada Link Road and the Cross Valley Link
- the North West Alternative State Highway (SH16).
Other major routes
- Takitimu Northern Link Stage 2
- Hawkes Bay Expressway
- Second Mt Victoria Tunnel and Basin Reserve upgrade
- the Hope Bypass
- The Belfast to Pegasus Motorway and Woodend Bypass.
