The Otaki to North of Levin expressway project will continue, according to Transport Minister Phil Twyford.

The Government this week released its draft Policy Statement on Land Transport. It indicates how around $4 billion would be spent annually on land transport.

Asked at the policy statement's press conference if the previous Government's seven Roads of National Significance projects - which include the Otaki to North of Levin expressway - would continue, Mr Twyford said yes.

The NZ Transport Agency earlier this year said it expected to release its preferred route for the expresswaymid-year.

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The draft policy statement features an 11 per cent cut in state highway improvements, a 42 per cent increase in local road improvements, a 46 per cent increase in public transport improvements, and a 248 per cent increase in walking and cycling improvements.

The statement is open for publiccomment until 2 May. It needs to be adopted by the Government by 30 June.

The Government plans to help fund transport spending by a petrol tax of between 9 and 12 cents a litre, to be phased in over the next three years, and equivalent increases in road user charges. The first increases are expected in September.