The NZ Transport Agency says a "paralysis" in the delivery of Tauranga transportation projects has come about from high demand for its resources.

The Bay of Plenty Times yesterday reported that this week, Tauranga City Council decided to stop awarding new contracts for transport upgrades in protest at what Mayor Greg Brownless said was a "paralysis" of the transport agency. Read more here.

In a written response to the decision, a transport agency spokesperson said the Government Policy Statement set its strategic decision for land transport over the next 10 years, offering funding through the National Land Transport Programme.

"Local Government has responded positively to the Government Policy Statement direction, submitting a large programme of activities in each activity class to be considered for funding support through the National Land Transport Programme.


"While the Government Policy Statement provides increased levels of funding, demand is also very high, and funding is not unlimited. The NZ Transport Agency is currently working on the prioritisation of a number of projects and establishing what can be realistically funded under the National Land Transport Programme.

"The Transport Agency is writing to all councils to clarify this process and we will be providing regularly updates and opportunities for engagement going forward."

In yesterday's Bay of Plenty Times, Brownless, Tauranga council chief executive Marty Grenfell and Western Bay of Plenty Mayor Garry Webber expressed frustration at a lack of progress on projects they say have been held up by the transport agency.