Tauranga City Council and the New Zealand Transport Agency are continuing talks over the future of Tauranga's toll road - Route K.

The country's two toll road operators met yesterday afternoon to discuss the options for the expressway including the introduction of electronic tolls.

Tauranga City Council and NZ Transport Agency are in discussions about the future of Route K.

Electronic tolling is used on NZTA's Northern Gateway toll route heading north from Auckland, and is being planned for NZTA's Tauranga Eastern Link, the toll road under construction from Te Maunga to Paengaroa.

Putting electronic tolling on Route K has advantages both in cost and flexibility.

NZTA told Council bulk buying with NZTA could halve the cost from $10million per gantry to $5 million per gantry, and provide flexibility.

'I think the issue of electronic gantries does provide a lot more opportunity for flexibility of pricing, discounts at different times of the day and multiple users,” says Tauranga Mayor Stuart Crosby.

The confidential part of the meeting discussed Route K and Turret Road/State Highway 2A issues, but made no decisions, says Stuart.

The talks are not aimed at removing the council's $60 million Route K debt as NZTA rules prevent the government agency from doing so.

'With regard to existing debt it is my view that we may pursue other avenues outside of NZTA because they can only work within what they are legally able to work within,” says Stuart.

'That will be another conversation, more than likely with another government agency, down the track.”

The talks are a follow up from a series of meetings the council held last year with NZTA and local MPs over the roading issues - specifically the debt of Route K, and how to progress the Hairini causeway, Turret Road four-laning development.

'They have come back with some suggestions on how we can progress both Route K issues and SH2A, so it's just part of that ongoing journey.”

'What can we possibly do within the existing legislation and within NZTA's existing parameters that they work in, and that changes from government to government.”

They are looking at issues arising round changing the status of Route K to a State Highway, and if NZTA were to take over the maintenance of Route K, and issues around sharing the financial risk if things change in future.

'If they make decisions when they own it as in decisions that could potentially affect our income, then they will take on that risk and pay the difference.

'An example is that the northern arterial currently planned for a certain date. If it is delayed it jeopardises our income stream. We had conversation about that.”

Stuart says no decisions have been made yet.

'It was really just an opening, without prejudice discussion, and we will go away and think about that. It's really just a conversation at this stage.”

Stuart is grateful NZTA have put some thought into the issues and says the community will be consulted before any final decisions are made.

'I've been involved in roading issues for a long time and they take time. You have to work within the rules of the game of the day, and that's what we are doing.”