The Government's funding share for roads in Tauranga, the Eastern Bay of Plenty and the Coromandel is being increased to more than 50 per cent.

Under the new funding rates, Tauranga City Council's subsidy rises by six per cent, while Thames/Coromandel District's rises similarly from 45 per cent to 51 percent.

The Government's funding for roads in Tauranga, the Eastern Bay of Plenty and the Coromandel is on the rise.

The NZTA subsidy is the amount the government pays local authorities to help pay for roads.

Opotiki, Whakatane and Kawerau's increases are in double figures. Opotiki is the biggest increase at 23 per cent, while Whakatane's subsidy is increased from 52 to 64 per cent.

Kawerau is up ten percent and central government will now contribute three-quarters of local transport funding for Opotiki and Kawerau.

The roading assistance increases follow a two-year review of the funding assistance rates for transport investments made by local authorities.

The changes are aimed at improving the system says NZ Transport Agency Chief Executive Geoff Dangerfield.

The system identifies how costs of delivering transport activities are shared between central government through the National Land Transport Fund and local government.

'It's a co-investment system recognising there are both national and local benefits from investing in the land transport network,” says Geoff.

'The changes will ensure that the system is fairer and more effective in directing funding to the areas and activities where the transport network as a whole may suffer – especially if local authorities can't afford to deliver or maintain what is needed.

'The FAR system is a fundamental part of the country's transport investment framework which had not undergone a robust review for over 30 years.”

Under the changes, 59 councils will see their overall funding assistance rates increase or remain the same as current levels, while 20 councils will move to lower rates.

In order to address concerns about the impact of any sudden changes for councils with reducing funding assistance rates, the Transport Agency will be gradually transitioning changes to the new rates over the next nine years.

The new system has established that the overall ‘co-investment rate' for all local transport programmes combined will be 53 per cent, with individual councils receiving a higher or lower funding assistance rate depending on their relative ability to fund their share.

Geoff adds: 'This means that when we add up the total amount of funding provided to all approved organisations, it will come to 53 percent of the full cost of delivering all of those local transport activities.

'But the councils which need the most assistance will get a higher than average rate of assistance and those that are more able to afford it will pay for a larger share of their own programmes.”