Radio New Zealand - Te Reo Irirangi o Aotearoa

Work dries up for roading sector

Updated at 8:29 pm on 20 May 2010

The roading sector is relying increasingly on state highway road- building to get by, because private development and local authority work has dried up.

The Transport Agency is spending a record $1 billion on state highway work this financial year and another $10 billion worth is forecast to be done in the next decade.

Some 80% of all roading work is carried out by members of the industry body Roading New Zealand, which says that despite the state highway contracts some are struggling and are even laying off staff.

Roading New Zealand chief executive Chris Olsen says that's because other work, like private development and local authority work, has dried up.

Fifteen to 20 roading contractors are now often bidding for the same jobs, Mr Olsen says.

Transport Minister Steven Joyce says the situation would be a lot worse if it were not for the current level of state highway work.

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