South Island local government leaders say the region is facing a raw deal on national transport funding, presenting a report to Parliament this week that argues investment has failed to keep pace with the region’s outsized economic contribution.
Environment Canterbury chairperson Dr Deon Swiggs, who also chairs the Canterbury Regional Transport Committee, said the numbers spoke for themselves. “Whatever way you look at it, there’s a bit of highway robbery in terms of the funding which is being generated in the South Island and what is being returned.” He was joined by regional transport chairs from Nelson, Otago and Southland in presenting the findings.
The report, commissioned by the South Island Regional Transport Committee Chairs Group, found the region received just 11% of funding from the 2024/27 National Land Transport Programme in 2025, despite making up 24% of New Zealand’s population, generating 22% of GDP and a third of the country’s goods exports, and accounting for 40% of international visitor spending. The South Island also carries 43% of the country’s roading network and 45% of the state highway network, while generating only 27% of national vehicle kilometres travelled, so the cost of maintaining it is spread across far less traffic.
Swiggs said the imbalance was becoming harder to justify given current growth trends. “For the first time since World War 2 the South Island is growing faster than the North Island and we are not seeing proportionate investment.” He pointed to storm events and ageing infrastructure as reasons the region cannot afford to fall further behind on maintenance, warning that deferred upkeep tends to become significantly more expensive to fix later.
The Government has pushed back on the characterisation. Rangitata MP James Meager said the South Island had benefited from a 42% increase in funding through the 2024-27 National Land Transport Programme compared with the previous period, double the percentage increase seen in the North Island, alongside more than $150 million committed in Budget 2026 to strengthen at risk state highways.
Transport chairs are now calling on political parties to commit to rebalancing the transport budget ahead of the next funding round, covering public transport, roading, bridges and rail.
SPONSORED
