Govt confirms $1b spend on motorways

The Government has confirmed plans to increase spending on motorways by $1 billion over three years.

Transport Minister Steven Joyce said the confirmation came with the release of the Government Policy Statement on Land Transport Funding.

Mr Joyce had previously said the money would come from a mix of new money, increases in fuel taxes and reallocating spending within the National Land Transport Fund (NLTF).

Critics of the move targeted the $420 million reallocation as it took money from public transport and other initiatives.

Another $283 million would be gained from increases in fuel taxes from October 1, which partially replace the previous government's plans for regional fuel taxes.

The Government would also be putting in an extra $258m to help pay for Wellington passenger rail infrastructure

Mr Joyce said investment levels across all activities would increase from 2008/2009 levels with the government spending on rail in Auckland largely not coming from the NLTF.

"Funding for state highway construction had increased significantly on levels indicated in the previous Government Policy Statement to 35 per cent of the NLTF, with over $1 billion of additional investment going into the network over the next three years," Mr Joyce said.

"The NLTF will provide around $10.7 billion over 10 years for investment in state highways."

Investment in the rail freight network would be made subject to achieving a reasonable commercial return over time, he said.

The statement lays out government policy for land transport planning and funding over a 10-year period, replacing the last document released in August 2008.

- NZPA