The highway to debt freedom

Matt Cowley
Tauranga City Councillor

The big risk to Tauranga City Council's debt profile now has a solution; albeit a 20-year solution. Route K will be debt free by 2035.

Successive councils and staff have worked for three years to reach a mutual solution with the government. The government will own the northern road into NZ's largest sea port on July 1, 2015. It's important for the national economy that this road is adequately managed.

The deal is for council to gift Route K, including all future costs and toll revenue, to government. The $66 million debt stays on our books, but the government guarantees funding to council each year to pay-off the entire Route K debt by 2035.

The tolls will stay until the debt is paid off, or a devoted local Member of Parliament gets the debt written off completely.

The government (through the New Zealand Transport Agency), wants to install electronic tolls at Route K at the same time as the Tauranga Eastern Link (TEL) opens in 2015. We're raising the tolls on Route K by 50 cents for a car and $1 for a heavy vehicle. This will repay the debt faster and make Route K similar in price to the TEL. Even with the tolls, it will still be faster, cheaper and less stressful than going down Cameron or Cambridge roads.

Did you know 64 per cent of trips either start or finish outside of the city limits? It proves tolls are a good way of ensuring those who benefit from the fast route to the port help pay for it.

Some of us thought banning heavy vehicles on Maunganui Rd (between Golf and Hull roads from 9pm-6am) was overkill, but it actually makes sense. I congratulate the transport sector for keeping the port fed with freight, while helping us to give nearby residents a good night's sleep.

The Mayor and I welcomed 80 Japanese college students into the city last week. I'm putting my money where my mouth is, since I'm a strong advocate for economic growth. I'm joining the Mayor and industry leaders to visit our sister cities in Japan in early April. I'm personally paying $5000 for my flights, and our sister cities will pay our accommodation.

The visit aims to attract students to study in Tauranga, collaborate on marine research, and promote tourism. The Port of Tauranga is also advancing its relationship with the Port of Yantai.

Feel free to email me your thoughts (matt.cowley@tauranga.govt.nz), call/text me on 027 6989 548, and follow me at www.facebook.com/a.younger.voice.

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