Council to receive increased funding for road maintenance


Ashburton District Council will receive an increase in its Funding Assistance Rate (FAR) from next year following a two year review by the New Zealand Transport Agency (NZTA).

Council's current level of government assistance funding is 46% for road maintenance.    Following the  review, the funding will increase to 49% in 2015/16, 50% in 2016/17 and 51% in 2017/18.  It will remain at 51% after that.

Mayor McKay says the decision is very good news for Council to help meet the ongoing cost of operating, maintaining and improving the District's roads - New Zealand's fourth largest roading network.

"We are very pleased with the result which I believe has come about through our strong lobbying to the NZTA and Government for a more equitable allocation of funding for this District," says Mr McKay. 

"We believed there was an imbalance between the amount of money being collected from fuel tax and road user charges relative to what was being invested back into our roads at central government level.

"This was confirmed in a report by Business and Economic Research Limited (an independent research agency) after Local Government New Zealand requested it look into this.

"The outcome shows they have listened to us - our lobbying efforts have certainly paid off.

"Our roads are critical to the ongoing economic development and prosperity of the District and essential for the efficient transport of the products we grow so well.

"Council is committed to the maintenance and development of a road network that meets the District's needs effectively," says Mr McKay.


Page reviewed: 07 Nov 2014 2:53pm