Regional councils are reviewing local transport projects after finding out bids for millions of dollars in Government funding have been declined.
The Government has increased the public transport services and infrastructure investment to $6.36 billion in the $32.9 billion National Land Transport Programme 2024 – 2027.
That compares to $4.9 billion in public transport funding allocated in the previous 2021 – 2023 period.
The investment doesn’t cover as much funding for projects as some regional councils were expecting, if any.
“Every year we expect to have a robust discussion with the Government about what’s funded and what’s not funded,” Greater Wellington Regional Council Chair Daran Ponter told 1News.
“This year we didn’t get that indication from the NZTA, they allowed us to put things into our long-term plan and then two, three months after the long-term plan has been confirmed – our principal budgetary document for the region – they then tell us that 100% of the funding for these 40 projects is not going to eventuate.”
The council has estimated the funding shortfall to be $134 million.
One of the projects was an upgrade of Waterloo station in Lower Hutt, the second busiest train station in the region. The station’s infrastructure is ageing and in some areas unsafe.
“We can’t have any confidence to move forward as a region if we’re going to have those types of decisions hanging over us,” Ponter said.
Auckland Transport, which manages local roads and public transport, has estimated a $600 million shortfall in Government funding for what’s included in the council’s long term plan.
In a statement, AT chief financial officer Mark Laing said the organisation is assessing the implications and will determine what projects are the priorities for funding ‘to deliver as much as we’re able.’
The shortfall for the Bay of Plenty Regional Council between the assumed Government contribution and estimated actual funding is $16.2 million.
“Reprioritising, reviewing the way in which you operate the services is not necessarily bad but we will have to inevitably look at future projects,” Bay of Plenty Regional Council Chair Doug Leeder said.
Leeder said unlike Greater Wellington, the council had been given a heads up that funding was likely to be reduced but didn’t have a figure until the transport programme announcement was made by the Government.
He said the outcome means the upcoming fare review will be more likely to lead to an increase in fares, but no decisions had been made.
“This will certainly put the focus on the situation that we face in terms of trying to provide similar, if not the same level of service, but we’ve got to fund it from somewhere,” Leeder said.
Waikato Regional Council’s bid for $20 million to increase bus trips and improve the existing service was declined.
‘As a result, we are unable to launch new bus services to meet increasing needs as a result of residential growth in Hamilton (specifically Peacocke, Rotokauri and Rototuna) or improve bus services in Raglan, Cambridge or Te Awamutu,’ a council spokesperson said in a statement.
The council did receive funding to continue the Hamilton to Auckland Te Huia train service through to the end of the trial in mid-2026.
The spokesperson said ratepayers are expected to increase their share of the cost of the service over time.
Environment Canterbury Regional Council is also reviewing its project plans with an estimated $23.1 million shortfall in expected Government funding to increase the frequency of bus trips on main commuter routes between nearby towns and Christchurch.
“…Which is incredibly disappointing to us in terms of the need to improve public transport along with the infrastructure that our partners would have been putting in, again none of which was funded,” the council’s director of corporate and public transport services Giles Southwell said.
One route may be covered by the estimated less than $4.4 million in funding that was provided, he said.
Southwell said there were plans to hire more drivers and purchase more electric busses, which don’t create emissions during service, as part of the Public Transport Futures programme.
“That will obviously be something we’ll have to revisit as a result of these decisions.”
He said since the Canterbury earthquakes, there’s been major underinvestment in public transport. There’s also been population growth in Waimakariri and Selywn districts, and the Christchurch suburb of Halswell.
“This was a programme of work to address that; obviously started pre-Covid but actually finalised and wanting to be invested over the next few years to address the need for improved public transport for our communities, hugely desired by our communities,”
Southwell said.
Transport Minister Simeon Brown said there’ll always be a need for more funding but both NZTA and local councils need to ensure every dollar is being spent efficiently.
“…So when Greater Wellington Regional Council is putting gardens on the top of bus stops I’m not confident that they are spending tax payers and ratepayers money appropriately,” he said.
He said the regional council needs to do more work on projects where there were funding bids for a business case.
Brown also said less money was spent by the regional council than what was allocated in the previous national transport programme.
“So they’ve got an issue with delivery…”
“New Zealanders have expectations to focus on the must-haves not the nice-to-haves and we expect regional councils and local councils to be doing the same,” the Minister said.
Brown said the funding programme struck the right balance and said he wasn’t concerned transport infrastructure would become the next Wellington water pipe situation, where there’s been decades of underinvestment.
He said decisions on individual council investment was the responsibility of New Zealand Transport Agency, referring questions to the agency, but said overall the Government has prioritised road maintenance and ensuring public transport is reliable.
“We’ve increased funding for both of those activities,” he said.
Greater Wellington Regional Council Chair Daran Ponter said after the council decides which projects it will now fund the entire cost for, it will discuss the remaining projects with New Zealand Transport Agency.
“This is a partnership — public transport gets these people who use the train off our local roads and means less investment in state highways and local roads so there is a definite win-win for the Government by continuing positive investment in regional rail and regional trains.”
Ponter said the council is “proud” to have a largely electric train fleet and 22% electric busses and will try to continue to increase converting the bus fleet despite the Government’s funding decisions.
“It makes it harder and we have already as a consequence of cost-cutting in our long-term plan, we have already pushed out the number of years that we will keep our older diesel busses in service.”
He said the council’s long-term decision reflected the country’s tight fiscal environment.
Ponter welcomed the Government’s investment in regional trains, a real time information system in the region and a ticketing service that will be aligned across the country.
“We’re one of the last regions to really grab a hold of integrated ticketing – the next ticketing system will mean… you can move from bus, train with your credit card, with your bank card or with a store value card in a similar way that you can do in places like Melbourne or London.”
“We need those things and some money to be able to do the business as usual, ‘boring’ stuff that underpins a good public transport network.”
