Whakatāne District Council’s ability to deliver on local roading projects has been severely hampered following a decision by Central Government to significantly reduce external funding. This decision will impact the delivery of key improvements and planning activities outlined in the 2024-2027 Long Term Plan.
The substantial transport subsidy shortfall has arisen after Central Government signalled funding prioritisation for Roads of National Significance projects by Waka Kotahi New Zealand Transport Agency.
Manager Transportation, Ann-Elise Reynolds says the decision by Central Government has left the Council both surprised and disappointed.
“This significant development presents a major challenge to our ability to maintain and enhance local infrastructure as previously planned.”
At a recent Infrastructure and Planning Committee (26 September), elected members expressed their commitment to working closely with community stakeholders and exploring all available options to mitigate the impact of these funding cuts.
“The cuts are expected to have a notable impact on local contractors and the broader economy, highlighting the importance of strategic planning and prioritisation in our efforts to navigate these financial constraints. We will be working with Elected Members to understand what the impacts will be and how we can alleviate them.”
Alongside the announcement, Minister of Transport Simeon Brown has confirmed the Crown’s 2024-27 investment through the Crown Resilience Programme to help minimise the impacts of severe weather events on New Zealand communities.
Two local resilience projects have been thrown a lifeline with funding allocated as part of this resilience programme. Whakatāne District Council has received the following:
Taneatua Road Flood Resilience: $3,260,000 total cost estimate, with $2,706,000 covered by the Crown Resilience Programme
Rewatu Road Underslip: $720,000 total cost estimate, with $598,000 covered by the Crown Resilience Programme
Despite this newly announced funding for the two local resilience projects, there remains an overall shortfall of $13.4M for planned local roading projects.
Ann-Elise adds, “Our focus remains on delivering the most critical infrastructure projects while ensuring fiscal responsibility and transparency.”
The Council is exploring various options to address the funding shortfall which will be considered at a briefing session on 23 October.