Road-funding cuts will hit ratepayers

A major cut in roading funds from the Government could increase Waitaki district rates by 4% each year in the next three years.

Waitaki Mayor Alex Familton said on Tuesday the alternative was to downgrade the conditions of the district's roads.

The council is facing a reduction of $3 million in the next three years in the Government subsidy for roading it receives through the New Zealand Transport Agency. The reduction will have a major effect on the council's roading network and on its ratepayers.

It could increase the already high amount ratepayers have to pay to maintain the roading network.

It costs $267 a year per person in the Waitaki district to maintain roads, compared with $70 to $80 per person a year in cities and other urban areas.

Mr Familton said the recent cut by the agency to the council's roading allocation was unacceptable.

"The timing and exent of the cut will undermine the district's ability to maintain roading infrastructure."

Government funding was not a subsidy; it was the Government's fair share of costs for general use of roads in the area.

Mr Familton had written to Minister of Transport Steven Joyce expressing the difficulties the council faced.

"This conundrum must be resolved," he said.