Funding certainty and ratepayer relief for Karamea road through to 2030

Buller District Council has welcomed confirmation that the Karamea Special Purpose Road will continue to receive a 100% NZ Transport Agency Waka Kotahi Funding Assistance Rate through to 2030.

The decision provides funding certainty for the former State Highway 67 Karamea Highway and Karamea–Kohaihai Road for all three years of the 2027–30 National Land Transport Programme.

The 100% rate applies to eligible maintenance, operations, renewals, emergency works and low-cost low-risk activities.
Mayor Chris Russell says the decision provides certainty for the Karamea community and ratepayer relief for the wider district.

“This gives Karamea and Buller certainty about funding for this important route through to 2030.

“Retaining the 100% funding rate also means Buller ratepayers will not have to meet the normal local-share contribution for eligible work covered by the Special Purpose Road arrangement during this period.”

NZTA has advised the 100% rate is intended to provide funding certainty while further work is undertaken on the road’s longer-term nature, function, ownership and management.
That work will include consideration of whether the route should remain a local road or potentially form part of the state highway network.

NZTA has separately confirmed Buller District Council’s normal Funding Assistance Rate will reduce gradually from the current 75%.

It will be 74% in 2027/28, 73% in 2028/29 and 72% in 2029/30.

This means Council’s share of eligible activities funded through the normal FAR will move from the current 25% to 26%, 27% and 28% over the three-year period.

Chief Executive Simon Pickford says Council can now incorporate the confirmed funding rates into its transport and financial planning.

“The Karamea decision provides welcome certainty, while the normal FAR change means Council will progressively fund a slightly greater proportion of other eligible transport expenditure.

“The actual financial impact will depend on the size and makeup of our transport programme and what is approved for NZTA funding, so it is too early to put a single dollar value on that change.”

NZTA says Buller’s normal FAR reduction reflects updated data used in its national methodology, including changes in the number and value of rateable units and reported deprivation.

NZTA also intends to undertake a broader review of FAR policy ahead of the 2030–33 National Land Transport Programme.

Council will continue working with NZTA as both reviews progress.

-ENDS-

For further information please contact:
Community Engagement Team
Buller District Council
Media.Enquiries@bdc.govt.nz 

Disclaimer
The information in this media release was correct at time of publication. Changes in circumstances after the time of publication may impact on the accuracy of the information.