A Government investment of $25 million announced by Infrastructure Minister, Shane Jones, last week is expected to create 180 jobs and improve the safety and resilience of the Homer Tunnel on the crucial State Highway 94 (The Milford Road) tourist route linking Te Anau and Piopiotahi Milford Sound.

“Improving infrastructure is a key component of our economic recovery plan. This funding is an investment in the future of a critical piece of infrastructure for the region, improving safety for tourists, creating jobs and providing much-needed economic stimulus,” Mr Jones said.

However, several business operators who depend on the State Highway 94 corridor to Milford Sound for their businesses to survive have expressed concern and confusion about the funding of the Homer Tunnel project and the number of jobs it is said to be generating.

Rosco’s Milford Sound Kayaks owner, Rosco Gaudin, said he thought the funding would be better spent on the several areas of the Milford Road that still required urgent work.

Mr Gaudin said safety on the road was often compromised by slow traffic not having areas to pull over to allow other traffic to proceed and more slip-lanes on the road between Knobs Flat and Milford Sound should be a safety priority.

The confusion about Homer Tunnel safety upgrade work attracting the funding from the recovery package arose when it was generally believed the project had been previously planned and budgeted by Waka Kotahi following three vehicle fire incidents in the tunnel in 2002, 2008 and 2020.

Milford Road Alliance Manager, Kevin Thompson explained the $25 million provided by Government through the Covid-19 recovery package meant the work could be brought forward, “with the some of the work now able to get underway immediately”. 

Mr Thompson also explained that the approximately 180 jobs expected to be created by the project would be made up of a mix of those who would be engaged to work directly on the various elements of the project and increase in temporary jobs employment likely to be generated in Te Anau by the increased business from the project.

He said that due to the remote location of the Homer Tunnel, the contracted workers would be predominantly located in Te Anau. 

 It was expected local businesses would benefit from an increase in demand in areas such as accommodation, services, food and transport providers requiring an increase in temporary worker numbers over the 18 months of the project’s duration. 

The estimated number of additional temporary worker jobs likely to be generated was included in the 180 total figure quoted.

In his press release, Mr Jones says the work will benefit Te Anau and district in terms of ‘multiplier-effects’ from the actual project.

“This ‘flow-on multiplier-effect’ from funding should not be under-estimated for its wider financial return to the region. The Milford Road storm damage reconstruction works currently underway have shown the flow-on benefits of funding for the local community and for the wider region”. 

The Homer Tunnel safety improvements comprise a critical package of tunnel upgrade projects, including:

1. ‘Fire life’ (sustaining life in a fire) safety systems, including the installation of radar and incident detection cameras, remote tunnel monitoring from Te Anau, active lighting, barrier arms, and a power systems upgrade

2. The construction of new emergency refuges inside the tunnel for people potentially caught during an emergency (a fire or an earthquake)

3. The installation of a new forced ventilation system

4. A deluge system to control/limit a fire

5. An upgrade to the Eastern tunnel portal area, a new viewing area, an avalanche

mitigation system and rockfall protection above the tunnel portal, and dual-laning for winter traffic management.

The ‘fire life’ works for the tunnel will begin immediately, along with some components of the Eastern tunnel portal area upgrade. 

Work on the remaining safety improvements will be progressed over the next 18 months.