IPWEA’s Roads and Transport Directorate has estimated that there is a $447m deficit in funding of roads in NSW, it revealed in its Road Management Report.
The report, a joint initiative with Local Government NSW that is released every two years, was undertaken by Jeff Roorda & Associates. A total of 150 of the 152 councils in the state were interviewed regarding their investments in the management of roads and bridges.
According to the report’s findings, the estimated investment in NSW local transport infrastructure is $65.7bn, but a further 41 per cent increase on this would be required to meet current service level requirements. The report claimed that councils could face increased risk exposure as a result of underfunding, for instance through an increase in personal injury and legal claims.
Despite this, the levels of service funding gap for roads has reduced since the report was first launched in 2006.
Interestingly, the report also revealed that the service level gap for sealed road resurfacing has significantly reduced thanks to a 21 per cent increase in expenditure on resurfacing since 2012 and an increase in the average in-service useful life.
From an asset management point of view, the report found that 89 per cent of NSW councils now have roads asset management plans, compared to 30 per cent in 2006. This was attributed to it now being a requirement under Integrated Planning and Reporting.
Funding of roads in Australia was given a boost this year when
Treasurer Joe Hockey honoured his commitment in last year’s Budget to allocate another $350m to the Roads to Recovery project for the 2015-16 financial year.
The Federal Government established the Roads to Recovery program in 2000 to help local governments address the backlog of roads maintenance across the country. In total, it has committed to provide $2.1bn in funding to the project between the 2014-15 to 2018-19 budgets.
IPWEA NSW Roads and Transport Directorate Manager Mick Savage said that while the additional Roads to Recovery Funding is very welcome, it does not fill the void in the funding of roads in NSW.
“We are really happy about it [RTR] but it needs to be continued indefinitely into the future,” he said. “If RTR did not exist at all, councils would have gone broke. There’s no way without that funding that councils would have been able to maintain their roads. The increase is terrific, but it’s got to keep going.”
A significant problem that all councils across Australia and New Zealand experience is providing a visual condition assessment and consistent grading for their road network. IPWEA has undertaken significant research in this area and is foreshadowing the release of a significant new publication that will deliver nationally consistent condition assessments and assist decision making about the most appropriate treatment options as well as budgeting for long term renewals.