Government Policy Statement is a disaster for local government

One thing that’s not been reported much yet about the catastrophically bad draft Government Policy Statement released on Monday is what it means for local government around the country. Reading through the document, it was a bit surprising how little local government was mentioned at all – seemingly ignorant of the massive role district and regional councils play in delivering transport services and infrastructure.

The diminished role of local government in the GPS plays out in a few places. Most critically in the different activity classes, where local councils depend on what’s called “co-funding” from the National Land Transport Fund to cover around half the cost of public transport services, infrastructure, walking and cycling projects that they deliver. Big reductions in these areas will leave big holes in the budgets of local councils.

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