Peters deal includes toll free harbour bridge for Tauranga

New Zealand First leader Winston Peters has negotiated a toll-free harbour bridge for Tauranga as part of his Government deal with Labour.

The $220 million Harbour Link project will now be designated a fully funded state highway. Construction starts late next year and is due to be completed in three years.

Mr Peters, who will be foreign affairs minister in the Labour-led government, said keeping tolls off the bridge was "the number one issue" he raised with Prime Minister Helen Clark and Treasurer Michael Cullen when he offered his party's support in supply and confidence.

"It was signed off in writing by Helen Clark and myself. The reality is the harbour bridge will be funded from government-managed resources and not by the local motorist," Mr Peters said.

"I campaigned on this and I've kept my promise."

Mr Peters was unsure how much additional money would be provided for the Harbour Link project. That would be sorted by Dr Cullen and himself, and the final amount would be included in the budget next May.

He expected the funding would be close to $155 million, which was the projected amount to be repaid through tolls over 20-25 years.

With tolls, a daily commuter crossing the bridge twice a day would have had to pay more than $25,000 over that duration -- based on $2 a trip or $20 a week for 25 years.

The Labour-led government had earlier agreed to go 50-50 with Tauranga City Council over building the vital Harbour Link project, which will drastically reduce traffic congestion through the central city.

National's new Tauranga MP Bob Clarkson welcomed a toll-free harbour bridge.

"If that's his swansong then thank you, Winston ... even if it's not the nicest way he's done it. I'm for Tauranga through and through, and that was one of my main pushes."

- BAY OF PLENTY TIMES