Rotorua's roading burden to ease

Photo / Andrew Warner

A new funding system means the Crown will pay a higher proportion of Rotorua's roading costs.

The New Zealand Transport Agency (NZTA) has finalised its new Funding Assistance Rates (FAR) for transport investments, meaning it will fund more of Rotorua's roading projects.

Previously the agency has contributed 50 per cent of the necessary funding but it will now contribute 55 per cent, with the Rotorua District Council responsible for the rest.

Other districts that will see an increase are Kawerau and Opotiki, which will receive 75 per cent of funding required, Whakatane's funding has been upped to 64 per cent and Taupo will now get 52 per cent funded.

Transport Agency chief executive Geoff Dangerfield said the changes were aimed at improving the system to better match funding assistance levels with each region's needs and ability to pay.

"The changes which are being made as a result of the review will ensure that the system is fairer and more effective in directing funding to the areas and to the activities where the transport network as a whole may suffer if local authorities can't afford to deliver or maintain what is needed in their areas."

Under the new FAR system each approved organisation will receive a single funding assistance rate for all of its transport activities, with the exception of emergency works and other exceptional circumstances. At present, a single council may have to navigate through more than a dozen different rates of funding assistance to provide different transport activities.

NZTA Waikato and Bay of Plenty regional director Harry Wilson said the two-year review was "a great example of the transport sector working together in partnership".

"The formula to calculate the FARs is complex, but basically includes each council area's roads length, value of land, number of properties rates are collected on, and their level of social deprivation," he said.

"It was time for a change - the FAR system in its current form has been around for over 30 years, has been added to and tinkered with over the years, with in some cases more than a dozen different rates of funding assistance used.

"These changes are all about ensuring funding for local transport programmes goes where and when it is most needed, is fairer and more effective."

The funding rate does not apply to emergency roadworks or other exceptional circumstances.

The rates increase takes effect from the 2015-18 National Land Transport Programme period.