Bike trail funders deny "massive shortfall" claim

Crux has received replies from the three funding bodies who are backing the Queenstown to Cromwell bike trail and none of them can see any justification for Southern Lakes Trail Trust chair Aaron Halstead declaring a “massive shortfall” in funding for the trail.

Mr Halstead told an invited audience at the start of construction over a year ago that there was not enough money for the critical trail bridges to be built and new, innovate ways of funding had to be found by the trust.

However, the most recent trust accounts show that public donations have nose dived from $200,000 to just $3,000 in the most recent financial year.

Mr Halstead (main image above) and his trust CEO Janeen Wood  have both been reluctant to share information or answer questions from Crux about project progress or funding status.

Here are the answers we received from the three Queenstown to Cromwell funding bodies. The most recent trail accounts show a bank balance of around $1.5 million but with almost $500,000 of trade suppliers to be paid. At least $5 million is needed to complete the Queenstown to Cromwell trail - with more needed for the new Cromwell to Wānaka trail.

Government - Ministry of Business, Innovation and Employment.

David Talbot, Manager Investment Management Performance

“In June 2018, the then Minister of Tourism approved $13.2 million from the New Zealand Cycle Trail Fund (NZCT Fund) towards the construction of five projects to link the four existing Great Rides in Central Otago including the Kawarau Gorge Trail.

Not all the funding for the Kawarau Gorge project has been drawn down, with further payments scheduled over the next 18 months. We are unable to release the amount yet to be drawn down as it is commercial in confidence. The Southern Lakes Trails is keeping us well informed on progress and it has a good track record for managing construction given the success of the Lake Dunstan Trail.

The NZCT Fund Investment Round announced today (Tuesday 25 February) may provide an opportunity for Southern Lakes Trails Trust to apply for additional funding, for example to help complete the Roxburgh Gorge Gap and Wānaka Link projects.

The Southern Lakes Trails is a charitable trust and is subject to financial and reporting requirements as per the relevant Act(s).

Please note that Ngā Haerenga New Zealand Cycle Trails is an incorporated society and not part of MBIE.”

Central Lakes Trust.

Barbara Bridger Chief Executive

“Central Lakes Trust (CLT) has been supporting the Southern Lakes Trails Trust (SLTT) since its inception in 2016, when a robust business case for a cycling trail network linking Clyde, Cromwell, Wānaka, and Queenstown, backed up by three feasibility studies confirmed the wide-reaching benefits of this network.

Initial funding of $26.3m was sourced from Otago Community Trust, Central Lakes Trust and the Ministry of Business, Innovation and Employment.

Since the approval of the initial funds, costs have escalated due to numerous factors including the impact of COVID-19. CLT has adjusted funding to ensure the continuation of the project and has also provided funding towards maintenance of the completed Lake Dunstan Trail.

The trails offer outstanding community wellbeing and recreation infrastructure, as demonstrated by the Dunstan Trail in 2022 being awarded Great Ride status.

We believe that the trails developed and under construction are jewels in our region’s crown, and we are proud to be a cornerstone funder of SLTT.”

Otago Community Trust.

Andy Kilsby, Otago Community Trust Chair.

“Thank you for your inquiry regarding OCT’s investment in Southern Lakes Trails (formally Central Otago Queenstown Trail Network Trust) network project.

As one of several funders, with a $2 million commitment formalised in 2018, we remain supportive of this regional infrastructure project. The completion and success of the Lake Dunstan Trail demonstrates the transformative potential of this network for our region's recreational and tourism offerings.

We understand from the Southern Lakes Trails Trust that full funding has been secured for the Kawarau Gorge link currently under construction.

Approximately $800,000 of OCT’s committed funding remains to be drawn down in future, reflecting the project's staged approach.”

So it appears that the three funding bodies are offering continued support to the Southern Lakes Trails Trust and the “massive shortfall” from Mr Halstead remains a mystery comment. We also don’t know yet the significance of the drop in donations from $200,000 to $3,000.

CODC mayor Tamah Alley, who is a Southern Lakes trails trustee, has told Crux that our funding questions will be discussed at the next trust meeting.