The NZ Transport Agency Waka Kotahi has prioritised road maintenance, construction of new roads, and public transport development in its $32.9 billion National Land Transport Plan for the years 2024-2027.
At a press conference, Transport Minister Simeon Brown highlighted the Government’s key priorities: safety, value for money, economic growth, and productivity.
Key Funding Highlights:
- Pothole Prevention: $5.5 billion will be dedicated to preventing potholes over the next three years.
- Maintenance and Operations: $4.6 billion will support the upkeep of state highways and local roads, funded in partnership with local councils.
- State Highway Improvements: Waka Kotahi plans to invest $7 billion to enhance the state highway network, including the construction of new roads.
- Public Transport Infrastructure: An additional $6.4 billion will be allocated to develop new public transport facilities and provide subsidies to local councils.
This National Land Transport Programme outlines how Waka Kotahi will allocate funds to maintain and enhance New Zealand’s transport network. It aligns with the Government’s land transport policy statement released earlier this year.
Funding Sources:
The investments will come from the National Land Transport Fund, primarily sourced from fuel taxes and Road User Charges (RUCs).
Safety Initiatives:
The June policy statement also emphasises safety, with a commitment to crack down on drunk and drugged driving. The Government aims to conduct 3.3 million roadside alcohol tests and 50,000 roadside drug tests annually. Legislation for roadside drug testing is currently being reviewed by a Parliamentary select committee.
Roads of Significance:
The Government has reintroduced the Roads of National Significance programme, initially started in 2009, and has also launched a Roads of Regional Significance programme to focus on crucial regional routes. The draft policy statement identifies 17 roads of national significance and 11 of regional importance.
Fuel Tax Changes:
Minister Brown hinted that fuel taxes could be phased out sooner than expected, possibly as early as 2027 for light vehicles. However, drivers shouldn’t expect a tax cut, as fuel taxes may be replaced by RUCs, keeping tax rates similar, with an anticipated increase of 12 cents per litre in 2027.
Speed Limit Updates:
Speed limits are also under review. The coalition Government plans to reverse the previous Labour Government’s speed limit reductions as part of its agreement with Act. On Sunday, Brown proposed raising the speed limit on a 25km stretch of highway between Ōrewa and Warkworth to 110 km/h, stating this would “unlock economic growth and productivity by enabling quicker and safer transport of people and freight between regions.