Pursuant to section 3F of the Transit New Zealand Act 1989, and in accordance with the Government's regional development land transport policy, I direct Transfund
New Zealand to increase the financial assistance rate to 100% for the following councils for the roads and alternatives to roads projects that are eligible for, and are funded from, the National Roads Account Output: Regional Development Capital and Output: Regional Development Maintenance:
? Far North District Council
? Kaipara District Council
? Whangarei Regional Council
? Northland Regional Council
? Gisborne District Council
? Wairoa District Council
Background
1. On 28 February 2002, the Government agreed to the allocation of $30 million through the National Land Transport Fund, over a 16 month period, for regional development (roading and alternatives to roading). The Government decided that its regional development priority is to assist local authorities (and other public bodies) to meet specific needs where regional development and alternatives to roads are constrained by inadequate investment. The Government has also agreed that regional development investment will be focused on areas of acute need such as East Cape and Northland.
2. The councils from Northland and East Cape have informed the Government that they cannot fund their contribution for roads and alternatives to roads aimed at regional development.
3. This direction recognises both the decisions in (1) above and the Northland and East Cape councils' financial situations outlined in (2) above. The Government also agreed that, while this direction requires Transfund
New Zealand to provide 100% funding for regional development roads and alternatives to roading for the named councils, those councils' overall contributions to land transport investment is to be maintained.
Dated at Wellington this 9th day of October 2002.
PAUL SWAIN, Minister of Transport.