Transport subsidy cap puts squeeze on city plans

Maintenance of Manukau's local roads will have to be cut or delayed as the city council scrambles to find $7 million to do the work.

The Transport Agency subsidises councils for road resurfacing and improvements each year according to their individual rating ability.

Manukau City Council gets a 43 per cent subsidy but it says an authority funding cap means that has declined.

Council figures show $7 million of subsidies in maintenance, replacement and renewals, road safety, walking, cycling, passenger transport and road reconstruction budgets are at risk.

Council transport portfolio leader David Collings said the Government identification of state highways as a priority meant other services were suffering flow-on effects.

"We don't disagree with the national significance of state highways but [the Government] needs to front up with budgets to address all areas."

He described the subsidy denials as "cuts".

"This means the council's options are to increase rates or do less to maintain and improve local roads."

Finding the cash to fund the deficit would mean a 3 per cent increase in rates - unpalatable to ratepayers who had told the council "loud and clear" they didn't want that to happen.

The council would continue to lobby the Government to make up the shortfall but residents would potentially see a drop in service, he said.

"One of the big problems with delaying maintenance and resurfacing is that we will have poorer quality roads. This ends up costing more in the long term because there will come a point where we'll have to spend more to get roads back up to standard."

There is also council uncertainty about upgrades to roads around Flat Bush needed to cope with development where 40,000 people are expected to live by 2020.

But Transport Minister Steven Joyce said it was worth remembering Manukau got $14.4 million in Government funding, up from $13.7 million in the past financial year. "They say they've been cut - they haven't."

Every council had a wish list but they needed to do better at getting value for money out of contractors, especially given that input costs such as fuel had decreased over the past year, Mr Joyce said.

Over the next three years, spending on local road maintenance, operation and renewal would rise 17 per cent across the country.

IN DOUBT
* Safety projects.
* Lambie Drive south.
* Whitford/Maraetai - Jack Lachlan Drive to Okororo Rd.
* Walking and cycling tracks.
* Boundary Rd to Ti Rakau Drive.
* East Tamaki R.d
* Mahia/Coxhead roundabout.