Budget’s $2.68b boost for transport
The government has confirmed it is investing $2.68 billion in roads, rail and public transport as part of Budget 2024.
Simeon Brown, Minister of Transport, says the total includes a $1b increase over what was indicated during consultation on the government policy statement (GPS) on land transport.
“This funding has been secured to accelerate the delivery of priority projects including the roads of national significance,” he explains.
“We want construction firms to know that this government will get on and build roads and we have prioritised funding in place to make this happen.”
The extra investment is on top of the $20.7b in funding outlined in the draft GPS on land transport and roads of regional significance programme this year.
Other transport investments in Budget 2024 include:
• $1b to accelerate the delivery of the roads of national significance and major public transport projects.
• $939.3 million to repair roads damaged by last year’s severe weather events in the North Island
• $266.9m to upgrade and maintain the metropolitan rail networks in Auckland and Wellington
• $200m to support KiwiRail to carry out maintenance and renewals on the national rail network
• refocusing $59.7m of existing funding over the next four years towards decarbonising the bus fleet, including zero-emissions buses and charging infrastructure.
Brown, pictured above with Nicola Willis, Minister of Finance, says Budget 2024 delivers a pipeline of transport infrastructure investment to support the government’s plan to rebuild the New Zealand economy.
“Budget 2024 is also about ensuring we continue to repair and rebuild the important transport links that were knocked out during the North Island weather events,” he adds.
“The government is fully funding the recovery of the state highway network and supporting local councils with the recovery.
“Our government is investing in the transport infrastructure needed to help Kiwis get where they need to go quickly and safely, and unlock economic growth and opportunity.”
Tax relief
Willis says Budget 2024, which she announced on May 30, sets out the government’s plan to rebuild the economy, ease the cost of living, deliver better health and education services and restore law and order.
“This is a fiscally responsible budget that delivers on key coalition government commitments,” she adds.
A headline feature of Budget 2024 is a $14.7b tax relief package, which is in line with the National Party’s election pledge and will be fully funded from savings and revenue initiatives.
The government has also cut its future operating allowances – the amount of net new discretionary spending – from about $3.2b to $2.4b for the next three budgets.
Treasury is forecasting inflation to drop back below three per cent by the end of the year and the government books are expected to be back in surplus by 2027/28.
