Government road funding cuts will cost Tararua nearly $1.3M
Mon, 7th Sep 2026 (Today)
A reduction in government road funding of about 2% per year over three years will cost the Tararua district nearly $1.3 million.
The district's mayor Scott Gilmore said it was "disappointing" essential funding tailored to local government and local communities was being cut in a time where the Government was telling councils to keep rates down.
For every eligible dollar spent on Tararua roads, the New Zealand Transport Agency (NZTA) contributes 73 cents in Funding assistance rates (FAR).
But this contribution would decrease next year by one cent before falling to 71 cents for the next two years after that, costing ratepayers an estimated $1.286m over three years.
NZTA recently announced its assistance rates for the country's road network, with some approved organisations receiving the same rate for the next period while others were facing cuts to their assistance.
FAR were funded through the National Land Transport Fund and applied to approved land transport activities which ultimately supported local government to pay for roading improvements.
Tararua received 73% in FAR over the past three years following Cyclone Gabrielle. The national average for the same 2024 to 2026-27 period was 53%.
"The reduction in our FAR will leave us only two choices – we either reduce badly needed investment in our roads, or we ask our ratepayers to cover the funding cut," Gilmore said. "Neither is a good outcome."
The Government announced last week it would move ahead with plans to enforce a rates cap on councils of 4% for the next term. If passed, the cap would come into effect on July 1, 2029.
Tararua District Council managed to keep its rates increase to 4.83% for 2026/27 despite predicting a rise above 10%, with this average being above the proposed rates cap but below the national average rates increase of 6.9%.
Gilmore said the council was supportive of keeping costs low for ratepayers across local government.
But he did feel there needed to be equal concern and focus applied to decisions made by central government which caused further financial strain for councils, and subsequently ratepayers, during a cost-of-living crisis and numerous on-going reforms.
The council would now write to the Minister of Transport and NZTA board asking them to reconsider reductions in the district's FAR.
