Landowners reject blame for $350m bypass cost blowout

Monday, 24 November 2025

Property owners resisting land acquisition at the northern end of the Mt Messenger Bypass project have rejected claims their legal challenges have caused a $350 million cost blowout.

Latest NZ Transport Agency Waka Kotahi (NZTA) figures showed the budget for the southern and central sections of the 6km bypass in North Taranaki had increased to $590m.

In March the total cost of the project was budgeted at $365.1m.

Of the total cost, NZTA estimated $350m of the total budget was due to the “multitude of legal challenges,” that had led to construction delays.

While an NZTA update did not mention any specifics of those challenges, the main issue had been acquiring 11 hectares of Tony and Debbie Pascoe’s Mangapepeke Valley land near Ahititi, which is needed for the northern outlet of the bypass.

The bypass would replace the steep, narrow and winding road over Mt Messenger on State Highway 3 north of New Plymouth.

On Monday, Tony Pascoe said NZTA were the only ones to blame for the hike in costs.

“It’s not our fault,” he said.

“There was even a report put out that it is not a good idea to start this when all the land had not been acquired.”

The couple had fought for nine years to keep their land, a fight he said had destroyed the couple financially, mentally and physically.

“All we ask, we want a home to live in, it’s a family home and an income to carry on farming like we’ve been doing.”

Their stance had been criticised by Land Information Minister Chris Penk, who in March said the couple had caused “unjustified delay” and “unnecessary costs”.

Initially estimated at $89m in 2016 when the bypass was first proposed, cost estimates climbed to $200m the following year and $280m in 2021.

The latest budget for the bypass now exceeds the Stage Two development cost of Taranaki Base Hospital’s Maunga project by $127.4m.

That project’s cost rose from $300m in 2020 to $462.6m this year.

NZTA said the bypass’s northern section faced ongoing delays due to unresolved legal challenges over a final land parcel, which had pushed the project back by four years.

Funding and timelines of the section would be confirmed after legal resolution, it said.

The project has been backed up by more than 30 court decisions and legal proceedings remain a major driver of cost increases due to delays and construction scheduling, NZTA said.

It said inflation, rising construction costs, supply chain issues and Covid impacts since 2020 had also contributed to the ballooning budget.

Since 2017, NZTA said landowners had received 20 offers, including housing options across their 683-hectare holdings.

Kevin Doherty, NZTA’s group manager of transport services, said the agency’s preference was to acquire land by agreement.

NZTA had also incurred more than $5m in legal fees defending court cases, with more costs expected.

Both parties await a Supreme Court ruling following last month’s hearing.

Meanwhile, crews continued working on the southern and central sections of the project.

A project update said more than 300,000 cubic metres of earthworks had been completed and work continued on the 125-metre-long bridge and 235m tunnel., following the recent breakthrough

“The recent slips and closures on SH3 highlight the urgent need for a safer, more reliable route,” Doherty said.

“We remain fully committed to delivering this vital infrastructure for the region.”