Mayor Criticises Roading Changes

Wednesday, 8 April 2009

The Government's changes to road funding will have a significant impact on Southland, District Mayor Frana Cardno said. Under the changes announced today, regional fuel taxes are replaced with increased fuel tax and road user charges.

"Southlanders have to travel further for day-to-day things, such as school and supermarkets, and businesses have to freight product to and from the provinces. The changes will see costs going up at all levels in the provinces," Mrs Cardno said.

"Our ratepayers are really struggling already to meet the roading costs, and Council has to increase the roading rate in order to pay for the roads that are being damaged.

"It is important to remember that agriculture and rural business is still the backbone of the economy."

Mrs Cardno said it was essential to have a system that was balanced for everyone.

"This would be an excellent time to review the financial assistance rate because our ratepayers are already paying the most per person in New Zealand towards roading.

"It's time for the Government to increase the minimum 43 percent subsidy to at least 50 percent."

Southland had supported the regional fuel tax in its original format, under which councils could use the tax to meet their needs. However, there was too much national interference in the model that was put in place by the previous Government.

"We recognise Auckland has transport problems, but so do we, and we would welcome Transport Minister Simon Joyce coming down to talk to us about Southland's roading and transport network," Mrs Cardno said.

Under the changes, the funds raised from the increased fuel taxes and road user charges will go into the National Land Transport Fund, almost $1 billion more will be spent on state highway construction in the next three years and Government will allocate an additional $258 million to land transport over the next two years.

There has been no announcement so far on additional assistance for territorial local authorities to fast-track projects to assist the Government in its endeavours to boost the economy.

 

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Southland District Council
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Invercargill 9840
Phone: 0800 732 732
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