It hasn't been that way for some time. What happened sometime in the past isn't indicative of what happens today.
Funds are not diverted today. The line is How land transport is funded.
How you pay for land transport
All vehicles travelling on public roads contribute to the building, maintenance and operation of our land transport system by:
paying PED or RUC
being registered
paying the licence fee, often called ‘rego’, at least annually.
Some vehicles contribute to specific roads by paying tolls. All fare-paying passengers on public transport contribute to the operation of public transport services.
The cost of building and maintaining local roads is shared between central government, through Waka Kotahi NZ Transport Agency, and local councils. Councils contribute to the cost of their land transport activities from rates and borrowing, in what is known as the ‘local share’. The cost of public transport, and walking and cycling facilities is also shared but state highways and road policing are entirely funded by Waka Kotahi NZ Transport Agency.
From time to time the Government decides to fund projects which are unable or unsuitable to be funded by charges to vehicle owners. For these, the Crown is able to direct additional funds through its usual budget processes.




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