New Zealand Road history: Transfund News No. 1 July 1996

16 November 2023

Transfund News No. 1 July 1996 - National Roading Programme

This the very first edition of Transfund news following the launching of the Crown agency as the dedicated land transport funding agency, separated from Transit New Zealand (which remained as the state highway manager). The edition was understandably focused on the 1996/1997 National Roading Programme, Transfund's first. It had previously been called the National Land Transport Programme reflecting funding for both roads and public transport, but the new emphasis was to reflect Transfund's role as essentially a purchaser of road maintenance and improvements, and public transport services, on behalf of motorists.

Key elements were:

$743.7m ($1.45b in 2023 prices) in total spending for the year (compared to $675.9m the previous year, a 10% increase).
The increase reflected a Budgetary increase of $122.9m over the subsequent three years.
The benefit/cost threshold for capital spending was reduced from 5:1 to 4.5:1 for the 1996/97 year and to 4:1 for the 1997/98 year. This reflected Government confidence in Transfund ensuring quality of spending and the general Budget entering surplus (enabling a greater proportion of fuel tax revenue to be directed to the National Roads Fund).
The three-year cap on passenger transport funding was removed.
Passenger transport funding was increased by $13.5m to replace funding removed due to abolition of regional fuel taxes.
Additional spending was otherwise focused on increased maintenance, minor safety projects, new state highway construction projects, bridge reconstruction, continuation of seal extension.
Major projects to start included:

Albany-Silverdale section of the Albany-Puhoi realignment (SH1 Northern Motorway)
Otira Viaduct SH73 Canterbury
Stoke Bypass SH6 Nelson
Orewa River Bridge Auckland
Thorndon motorway viaduct seismic upgrade SH1 Wellington