Transport investment for growth confirmed

  • Steven Joyce

The government has today confirmed plans to invest around $36 billion through the National Land Transport Fund over the next ten years, with a focus on projects supporting economic growth, value for money and road safety

The investment plans are contained in the Government Policy Statement on Land Transport Funding (GPS) which has been released today by Transport Minister Steven Joyce.

The GPS outlines the government’s priorities for expenditure from the National Land Transport Fund and determines how funding is allocated between activities such as road policing, road safety promotion, state highways, local roads and public transport.

“GPS 2012 builds on the government’s progress in supporting economic growth through investment in much needed infrastructure,” says Mr Joyce.

“Continued funding for State highways and the Roads of National Significance will help encourage business, tourism and jobs, and will improve road-user safety.

“Providing the support necessary to repair the land transport network in Christchurch is also a top priority.”

GPS 2012 also increases funding for public transport services to reflect the government’s commitment to upgrade, modernise and expand the metro rail systems in Auckland and Wellington.

Much of the government’s capital investment in public transport infrastructure is being made outside of the National Land Transport Fund.

In addition to the fund, the government is investing:

  • $1.6 billion in the development of Auckland's metro rail system, which comprises:
    • $600 million for Project DART
    • $500 million for the infrastructure required to support electrification
    • $500 million loan funding for the purchase of electric trains
  • $400 million on Wellington’s metro rail upgrade, which has included double-tracking to Waikanae and the purchase of 48 new two-car Matangi trains.
  • A further $88.4 million for upgrades to the Wellington metro rail network as part of a funding and ownership package with the Greater Wellington Regional Council.

Mr Joyce says this is by far the most significant investment in public transport infrastructure since the Ganz Mavag trains were introduced in Wellington in the late 1970s.  “Taken together, the National Land Transport Fund investments and the parallel rail investments we are making are a huge investment in transport for a country of New Zealand’s size.

Funding areas such as local roads and walking and cycling, will allow steady improvements in those parts of the network.

“Further benefits will accrue in the walking and cycling area as most of the major roading projects have special provision for walking and cycling, and this isn’t counted in the walking and cycling budget.

“In achieving the goals set by the GPS, the government expects value for money to be a top priority. More than ever, it is important that road user money is carefully invested to get maximum benefit,” says Mr Joyce.

GPS 2012 will come into force on 1 July 2012, and the release of it now will guide the development of the next National Land Transport Programme and the associated regional planning documents.

GPS 2012 and further information, including Questions and Answers, is available on the Ministry of Transport website at