The New Zealand government has announced a $32.9 billion National Land Transport Plan aimed at revitalising the country’s transport infrastructure over the next three years. The plan, announced by Transport Minister Simeon Brown yesterday, places a strong emphasis on a “back to basics … no frills” approach.
Brown said, “Getting transport back to basics is one of the key reasons why Kiwis voted for this government. They were sick of the potholes plaguing our roads. They were fed up with the phantom projects that cost a fortune but never got off the ground. And they were tired of the speed bumps, planter boxes, and cycleways that made going about their day-to-day lives all the more difficult. When this government was elected, it was clear that we needed to get transport back on track and ensure that we were delivering the infrastructure that Kiwis wanted and needed. And today, this $32.9 billion national land transport plan gives effect to our plan.”
Roads of National Significance Return
A key feature of the new transport plan is the reintroduction of the previously halted Roads of National Significance program.
Nicole Rosie, Waka Kotahi NZ Transport Agency Chief Executive, said during the announcement, “The ambitious roads of national significance and roads of regional significance that the minister has outlined for you will see the building of strategic corridors that will connect new housing areas for population growth and provide key links to export markets. They’ll also improve safety, help get goods to markets more efficiently and effectively, and will build greater resilience into the roading network.”
This plan will “get transport back on track,” Brown said. He emphasised that the Roads of National Significance Program would be reprioritised to ensure faster and safer travel for Kiwis.
Major Investments in Public Transport and Road Maintenance
The NLTP also allocates a record $6.4 billion to public transport, marking a significant boost in funding for services and infrastructure. Key projects include the City Rail Link, the Eastern Busway, and the Lower North Island Rail network, all aimed at reducing congestion and improving travel times in urban areas.
In response to growing concerns over the state of New Zealand’s roads, particularly the proliferation of potholes, the government has earmarked $5.5 billion for road maintenance. In 2023, 62,000 potholes were recorded on state highways alone. The increased funding will focus on resealing, rehabilitation, and drainage improvements to prevent such issues in the future.
Addressing Financial Challenges and Future Funding
To support the ambitious projects outlined in the NLTP, the government introduced a Revenue Action Plan. The plan pledges to:
- “Make better use of existing funding tools for the National Land Transport Fund (NLTF).
- Reform tolling legislation to support bringing forward infrastructure investment.
- Unlock new funding tools, including value capture.
- Transition all light vehicles to road user charges by as early as 2027.”
(Source: Revenue Action Plan to support delivering infrastructure sooner)
Rosie acknowledged the challenges of rising costs and a shortage of skilled workers but expressed confidence in the agency’s ability to deliver on the government’s ambitious plans.
“These [challenges] all test our ability to meet our commitments given our limited financial constraints, but we are very much up for this program. Thought has been given to different ways of funding the land transport investment as outlined by the minister, and changes are being signalled that will give us much more certainty around investment and funding now and into the future,” Rosie said.
Balancing Road and Public Transport Funding
While the focus of the NLTP is on road improvements, Brown assured that public transport and active transport options like walking and cycling would still receive funding. However, he noted that the government is aiming for a more balanced approach, reflecting the priorities of road users who contribute to the National Land Transport Fund.
Further, when discussing investing in speed bumps and speed crossings, to which the government are opposed on the grounds that they exacerbate congestion, Brown noted that “if councils wish to continue to make those investments, they can do so, but they will not have the National Land Transport Fund subsidising those decisions.”
The announcement concluded with Brown calling for political consensus on the NLTP’s major projects. He expressed hope that the opposition would support the plan, which he believes aligns with New Zealanders’ priorities.