Government cuts road funding for Southland

Government funding for road maintenance and reseals in Southland has been cut by 1% - about $211,000, based on the 2011-12 Council roading programme.

Council chief executive David Adamson said Council is disappointed at the reduction in the funding assistance rate (FAR), but will continue to work in partnership with the New Zealand Transport Agency to find fairer solutions for road funding.

"Southland roads are very important to the country, with the amount of export dollars that travel along them. We are seeing an increase in heavy vehicles on our roads, which means more road user charges for Government, so this decrease is frustrating," Mr Adamson said.

"We are committed to having a roading network that is appropriate for purpose so we need to invest in the network to ensure it is fit and safe both for our people but also for the national economy," he said.

Southland District Council is one of 23 councils which have received a 1% cut to their FARs, other councils have seen their funding drop by 2% or more, while some others have received increases.

"Basically we are seeing rural ratepayers having to pay more for their roads, and urban less, and when you add to that the funding that is going to roads of national significance, it is a major boost for metro areas," Mr Adamson said.

Council realises the distribution of funds for roading from Government is based on the ability to pay through using land value, but it has real concerns about this.

"We are looking forward to working with NZTA over the next 18 months to develop a more equitable process. Meanwhile Council is looking at other opportunities to save costs, such as shared services and other cost efficiencies."

Council spends nearly $30 million on roading a year, with rates making up $11.4 million and Government funding nearly $16 million of that.