Concerns raised around Waka Kotahi's funding model as mayors worry roads will suffer

There are concerns that the region's roading infrastructure will suffer as a result of Waka Kotahi funding cuts. Photo / Bevan Conley

There are concerns that the central North Island's roading infrastructure could suffer as Waka Kotahi NZ Transport Agency moves to slash funding for local councils responsible for the upkeep of roads.

Rangitīkei mayor Andy Watson said there was a real possibility the 1200km of roading infrastructure in the Rangitīkei District could suffer as a result of the cuts.

A significant portion of the Rangitīkei council's roading budget is currently funded by Waka Kotahi - about 65 cents of every dollar spent.

The State Highway network is separate from the council's responsibilities and fully funded by Waka Kotahi.

Watson said that as his council went out to consult on its long-term plan earlier this year, it was working on the knowledge there would be a budget of about $37.2m for the 2021-2024 period.

But after consultation was complete, Waka Kotahi informed the council the funding pool would be slashed.

According to a memorandum supplied to elected members by the council's group manager for assets and infrastructure, the council's roading budget application for the 2021-24 period was reduced by almost $7m - from $37,207,000 to an "indicative funding level" of $30,941,000.

The memorandum details that, in practice, the reduction in funding could mean a slow deterioration of the condition of the district's roads, as well as a cutback in the resealing programme.

The memorandum also details the likelihood of the cuts creating a "long-term risk to the condition of the network"

Watson said he had serious concerns about what the cut meant for the district's infrastructure in the future.

"It's a significant cutback. What it means is that our network will undoubtedly deteriorate over time," Watson said.

"Every council in the country has accepted there has been under-investment in New Zealand's water infrastructure. My fear is that the under-investment in the roading consequences will put us on a similar path."

Rangitīkei Mayor Andy Watson says that there is a real risk funding cuts could leave the district's roading infrastructure worse for wear. Photo / File

Watson said it was a view shared across the board.

"It is an issue I've raised with other mayors - it's a national position and doesn't just affect us.

"It does concern me, and it's of enormous concern to our rural farming operations."

Ruapehu mayor Don Cameron said he had also raised concerns about the funding cuts, with Ruapehu's budget slashed by about $3.2 million over 2021-24.

"It is an issue, particularly when it comes to things like bridge maintenance and the rising cost of roading nationwide.

"I'm concerned - probably not as concerned as Rangitīkei is with the size of their cut, but it is a worry."

Whanganui mayor Hamish McDouall said he was worried about the effects of funding cuts too, particularly when it came to budgeting for significant projects laid out in the long-term plan.

McDouall said Waka Kotahi had always had a process of confirming funding after the long-term plan was finalised, sometimes putting the council in a difficult position when it came to balancing the books.

"We never know the level of funding that we are likely to be approved by Waka Kotahi until after the plan is finalised," he said.

"It is an alignment problem we've had for as long as I've been serving on council."

Whanganui Mayor Hamish McDouall says Waka Kotahi's process to work out funding for local councils should line up with the LTP process. Photo / File

The cutbacks in funding across the board meant the council now had to prioritise different projects based on Waka Kotahi funding.

The council had budgeted $310,000 to start the planning process for the Dublin St Bridge, with the provision of $50m for construction in years 9 and 10.

"We were assuming that Waka Kotahi would subsidise 60 per cent of the cost," McDouall said.

"That is still a way off but we need to project those costs."

McDouall said an example of a more immediate concern for the council was the renewal of Bridge 15 on Kauarapaoa Rd which missed out on funding from the transport agency in 2019.

Under heavy use by logging trucks, the bridge has a current 44-tonne limit and the building of a new bridge designed to handle 72-tonne loads is proposed.

McDouall said when anticipated funding did not meet the target, projects such as Bridge 15 had to be taken off the table.

"It is the only funding stream we have that problem with and it would be great if it was in line with council plans.

"Local authorities all have a target date of June 30 for finalising plans so it would really help if things were better aligned."

McDouall said he hoped the problem might be addressed as part of the Local Government Review process.

Waka Kotahi was contacted for comment.