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West Coast business welcomes NZTA's U-turn on road funding

West Coast business welcomes NZTA's U-turn on road funding

Mon, 7th Sep 2026 (Today)
Local Democracy Reporter
LOCAL DEMOCRACY REPORTER

Westland Mayor Helen Lash says she's "absolutely thrilled" the NZ Transport Agency has backtracked on a move to cut funding for two West Coast roads.

The two special purpose roads -- Haast-Jackson Bay Road and the Karamea Highway -- will continue to receive majority Government funding through to 2030.

The NZ Transport Agency has confirmed it will provide 95% funding for the 51km Haast-Jackson Bay, and 100% for Karamea.

At Jackson Bay, The Craypot restaurant and takeaways caravan welcomed the news after earlier raising concerns over business losses due to the threatened funding cuts for the Haast-Jackson Bay Road.

Six special purpose roads around the country were set to lose NZTA funding from June 2027, forcing councils to foot the billl.

West Coat councils warned that could have led to an 8.2% rates rise in Westland and 5% in Buller.

Mayor Lash said the Westland District Council had been advised Jackson Bay road would receive 95% Government funding for three years as part of the 2027-30 National Land Transport Programme, with the balance to be rated locally.

"We are absolutely thrilled."

It was good news for businesses in the area, the mayor said.

"It is massive. They can carry on their business as normal, knowing that the work is going to be done when it needs to be done. It means that when there is a flood or extreme rain events and the road gets washed out, that things will get fixed quickly and their lives will carry on," Mrs Lash said.

The owner of nationally renowned Jackson Bay eatery The Craypot,Joss Smith was today unaware of the funding turnaround but welcomed the news: "That is very exciting."

She said the confirmed funding would guarantee her business can remain open and so she was now expecting a busy summer.

"We will expect a busy summer season, same as we have had for the last two years."

The Craypot has been named among the top 400 restaurants in New Zealand by Cuisine Magazine.

NZTA director of regional relationships James Caygill said it has transitioned from a 100% funding approach for the Jackson Bay special purpose road to 95% because the Westland District Council can afford to subsidise the remaining costs via rates.

"We have reached this decision because we consider the road to be functioning as a local road, and that it is feasible for the council to cover 5% of the costs relating to this road for the 2027-30 period.

"The approach recognises exceptional circumstances while introducing an appropriate local share where this is affordable and consistent with value for money."
Mr Caygill said the funding would apply to maintenance, operations, renewals, emergency work and "low-cost low-risk improvements".
Buller Mayor Chris Russel said 100% funding from NZTA for the other West Coast special purpose road, the Karamea Highway, will be a source of relief for ratepayers, and particularly the isolated Karamea farming community of about 600.

The former State Highway 67 also serves as the principal connection to the southern end of the Heaphy Track and the Oparara Arches in the Kahurangi National Park.

"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."

South Wairarapa's Cape Palliser Road has also received a three-year reprieve from planned funding cuts.

NZTA confirmed it would continue to fund 95% of the road's costs from July 2027 until June 2030.

South Wairarapa Mayor Fran Wilde described the funding decision as an "early Christmas present" for local residents, ratepayers and the council.

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