As a result of changes to the state highway network, some roads may be re-designated as either state highways or local roads.
The State highway revocation document sets out the Transport Agency policy (and guidance) on the revocation of the state highway status of roads, according to section 103 of the Land Transport Management Act 2003 (LTMA)(external link)
If the Transport Agency recommends that state highway status should be revoked, it must ensure that the road will at the time of handover, be fit for purpose in relation to its transport functions.
Fit for purpose means that at the time of handover the revoked section of state highway will provide a level of service equivalent to other roads providing a similar function within the local road network, and be safe, ie it will not as result of that change in function have a safety defect that was not there before.
Transitional funding assistance will be provided for approved organisations so that the financial effect of revoking state highways in their area will not increase their programme share (exclusive of improvement projects) by more than three percent over the previous year.
If any decrease to a territorial authority’s funding assistance rate is warranted due to the declaration of a state highway the adjustment will be made in accordance with the methodology outlined under Funding assistance rates principles and policy.