South Wairarapa’s Cape Palliser Road has had a three-year reprieve from the planned government funding withdrawal in a move welcomed by Mayor Fran Wilde as “an early Christmas present for local residents, district ratepayers and the Council”. 

In 1997 the road was designated as a Special Purpose Road (SPR) which meant that it received 100% government funding. The SPR category is being disestablished by the New Zealand Transport Agency Waka Kotahi (NZTA) and the current special funding was due to lapse at the end of this financial year. Consequently, the Council’s 2025-34 Long-Term Plan estimated an increase of around 4% in rates for that road alone, starting on 1 July 2027. 

“Clearly this could have been disastrous for ratepayers, so we worked hard with impacted parties to put together a business case for continued NZTA funding”, said Mayor Wilde. “We thought this was a reasonable ask because its national importance has not changed since it was designated as a Special Purpose Road.  

“As well as being used by local residents, fishers and farmers, it’s an iconic national route, with access to a wide range of visitor attractions and an exceptional landscape. It is the southernmost tip of the North Island – head of Te Ika o Maui – with one of the highest concentrations of pre-European Māori sites in any part of the country, so is critical to iwi”. 

NZTA has notified the Council that from July 2027 until the end of June 2030 it will continue to fund the road at a Financial Assistance Rate (FAR) of 95% (including emergency works). Emergency work currently being undertaken following this year’s storm events will be funded at 100%. 

“This is a significant decision given that the fragility of the road,” the Mayor said. 

“Obviously the medium-long term future of road will continue to be big for the Council, locals and other users, but it certainly takes pressure off us all now to allow longer term planning, so we are grateful to NZTA for its continued support. 

“I want to thank very warmly all those who helped our staff put together the business case. Locals and iwi worked hard, gathering support from a wide and diverse range of people and organisations – that work has paid off.” 

ENDS

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