Good afternoon, Tena koutou - it is certainly a great pleasure to be here today to attend this long awaited sod-turning for the Eastern Taupo Arterial.

I would like to thank Taupo mayor Rick Cooper and his councillors for inviting me to attend this ceremony.

I would also like to acknowledge the staff of Taupo District Council, representatives from Fulton Hogan who will be building this road and members of Ngāti Tuwharetoa - particularly Ngāti Tuwharetoa Paramount Chief Tumu te Heuheu.

Finally, particular thanks must also go to the past Taupo Mayors, councillors, council staff and members of the community who have campaigned over a number of years for this stretch of road to be built.

No doubt for all of you today marks both the end of a long process to see this project approved and the starting point for a number of benefits for the district to be realised.

I appreciate that while I have been Transport Minister for only a short time - the history of this project goes back a long way.

In fact, I understand that the work that is to begin is the culmination of approximately 50 years of discussions, and that this project has been on the Taupo District Council's ‘drawing board' since the 1960s.

Last week the Government announced a raft of changes to the Resource Management Act.  This is the first step to ensuring that this kind of delay, for projects of this significance, no longer happen.

It is commendable that in recognising the overall national benefits of this road the Government and Taupo District Council have worked together to find a funding solution.

The unique and innovative arrangement reached between the New Zealand Transport Agency and the council saw this $110 million project funded by building it as a local road. This has allowed the risk to be shared and enabled the Government to commit greater financial assistance than would otherwise have been possible. In turn, the Taupo district has met its own considerable financial commitment to see the project get off the ground.

This agreement has resulted in a positive outcome for both parties to see the best use of limited resources and I look forward to observing this partnership in the months to come.

I would like to touch briefly on the wider local and national benefits of this road, as it is clear this 16 kilometre highway will serve both the Taupo District and the wider national roading network well.

For the Taupo community the immediate benefit will be the reduction in traffic congestion in and around the town, by diverting traffic heading further north or south away from the township and lakefront area. This will enable locals and visitors a greater connection between town and lake, and further enhance the natural appeal of the town.

The project will also provide economic stimulus for the region, both during the construction period and as a result of the greater linkages the road will create.

Another major benefit of course, is the addition to State highway 1 as a result of this bypass. When completed it will take State highway status, while the original road along the lakefront will revert to a local road.

As the Prime Minister and I have both previously stated, the Government regards the State highway network as a key part of our national transport infrastructure, enabling the smooth flow of freight and people around the country.

The regional and national benefits of well-performing transport corridors and projects such as this stimulate economic growth. Taupo as a major hub for road transportation is no exception, and the reduced congestion in the township, coupled with the option for heavy traffic to bypass the lakefront route will see travel times reduce and greater freight efficiency as a result.

In closing, I thank everyone involved in this project, both past and present.

To those members of the community, local iwi and past and present Taupo District Councillors and staff who have been involved in this project over the last 50 years, I commend you on your perseverance to see your collective vision achieved. This has been a long and often arduous project, but the benefits will soon be clear.

I wish the Taupo District Council, the New Zealand Transport Agency and Fulton Hogan all the best for the coming months of construction and look forward to returning in future to drive the route we are standing on today.

Thank you.