The boost, announced by Regional Economic Development and Infrastructure Minister Shane Jones in Invercargill, was welcomed by business and civic leaders.
That announcement comprised funding for safety improvements in the Homer Tunnel on State Highway 94, $25million for flood protection measures, $1.86 million over two years for a New Zealand Shearing Training Model programme, and $10million for aquaculture, as well as a $5.3million boost in loans for two Southland producers.
The tunnel safety improvements were funded through the Government’s rejuvenation package aimed at kick-starting the post-Covid-19 economic rebuild and comprises a package of critical upgrade projects.
Mr Jones said there was an overdue need to create space to enable people to survive in the event of an emergency.
The planned safety upgrades included "fire life" 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.
It also included 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.
Tour guide David Hill experienced first-hand last year the dangers the tunnel can pose when a vehicle in front of him caught fire.
He said anything to improve condition of the tunnel and road was a good thing.
"The glaring issue is the volume of traffic," Mr Hill said
"I know from experience, vehicles catching fire on that road are numerous."
He supported aspects of the planned upgrade, such as the deluge system, monitoring and barrier arms.
He believed part of the problem was the green/red light system presently in place that was set to a timer — cars were unaware of any emergency when entering the tunnel but found themselves driving into smoke, and increased risk of worsening the emergency.
NZ Transport Agency South Island regional relationships director Jim Harland said they were always looking to improve on safety.
He said there had been three accidents in the tunnel over the past 10 years, all non-injury.
Southland District Mayor Gary Tong was happy with the announcements and was encouraged there would be "more to come".
Southland Chamber of Commerce chief executive Sheree Carey said the announcements were a good start in securing Southland's future.
"However, places like Te Anau, who have been devastated by Covid-19, have come away with almost nothing while we see places like Gisborne getting $40million to renovate a swimming pool.
"We're hoping these announcements are just the start."
Milford Sound Tourism Ltd board chairman Roger Wilson said the tunnel had always been an area of concern and the upgrades were good news.
He hoped there would be more good news to come through the strategic tourism assets protection programme.
