SUBMISSIONS SHOW HEARTENING INTEREST IN SOLVING ROADING PROBLEMS

"The determination of New Zealanders to find the right solution for our transport network has been demonstrated by the response to the Land Transport Pricing Study:Options for the Future discussion document," Transport Minister Jenny Shipley said today.

In a speech to the New Zealand Dairy Board Transport and Storage Conference, Mrs Shipley said almost 500 submissions have been received by the Ministry of Transport.

"The vast majority of submissions argue for a more business-like or commercial approach to roading, subject to certain conditions being met.

"It's pleasing to see so many groups and individuals facing up to the challenge in a positive way.

"The Land Transport Pricing Study aims to design a road funding and management system that will ensure we can meet the challenge of increased road use and a growing economy in an economically sound and sustainable way.

"It presented five options, ranging from the status quo to a fully commercial model, where the roading network would be transferred to either one or a number of commercial enterprises, jointly owned by both central and local government. Some options would see road users pay more of the cost of roading, while reducing the amount paid through rates.

"The initial impression from the submissions is that there is very limited support for the status quo, while the business community generally favours a more commercial model.

"Some very interesting alternative options have also been proposed. Commercial road users support a single nationwide roading agency with no local authority ownership, while, not surprisingly, local government sees existing local authorities as the owners and managers of all roads, including state highways.

"There appears to be general agreement the existing network must be retained, and there should be no privatisation. That is an endorsement of the commitment I have made not to privatise the roads.

"I have also been interested to see strong support for "user pays" and opposition to money currently collected in petrol tax going into the consolidated fund for non-road related purposes.

"This all poses some very significant challenges for the Government in the next stage of the process. The submissions are currently being analysed in detail by the Ministry of Transport and the independent Roading Advisory Group, who will report back to the Government next month. The Government will then make its decisions before the end of the year, so that any changes can be incorporated into next year's Budget.

"This is our one opportunity to come up with an answer to the challenge of increasing road use. It may mean some major changes, but the Government is determined to find a solution that is in the long term interests of all road users," Mrs Shipley concluded.