Background - Transport Sector Review

Purpose

The Review of the government transport sector was undertaken to consider whether the sector has the capability and is best arranged to implement the New Zealand Transport Strategy (NZTS) and to consider ways to enhance sector performance in the future.

1. The NZTS, released in 2002, which introduced new objectives for New Zealand's transport sector: "an affordable, integrated, safe, responsive and sustainable transport system." These objectives replaced a more narrow focus on safety and efficiency. The Government has a 2010 deadline for implementing the NZTS.
2. The "Review of the Centre", completed in 2001, which suggested reviews of a number of State sectors to improve the overall performance of the public sector.

Review Team

The seven member Review Team comprised officials from the Department of Prime Minister and Cabinet, the Treasury, the State Services Commission and the Ministry of Transport.

Review Timeframe

The Sponsoring Ministers - the Ministers of Transport and State Services - announced the Review in early December 2003 and a draft report was provided to them by mid April. The final Report was presented to Cabinet on 14 June 2004. Cabinet endorsed the Review recommendations.

Scope of the Review

To view the terms of reference of the Government Transport Sector Review, see the full Review Report posted on the Sponsoring Ministers' websites
http://www.beehive.govt.nz/hodgson,
http://www.beehive.govt.nz/mallard 

Review Findings

The Review concluded that while individual government transport agencies are performing their designated functions well, overall, the sector's current structure and way of operating does not support the achievement of NZTS objectives or optimal performance.

Many current arrangements - including some of the agencies' legislated objectives - are barriers to collaboration and co-ordination across the sector in planning, funding and delivering transport solutions (particularly land transport) in line with the NZTS.

The whole of the transport sector needs to refocus on delivering the NZTS objectives and work together to achieve them.

Key Recommendations

The Review recommends a number of non-structural and structural changes.

• Empower the Ministry of Transport to provide strategic leadership of the sector including a Ministerial Mandate for joint planning and service delivery by government transport agencies in support of the NZTS.
• Co-ordinate policy development across the sector, under Ministry leadership.
• Transfer funding policy from Transfund and some policy functions from the LTSA to the Ministry and reallocate policy resources accordingly.
• Broaden the focus of safety authorities to include wider NZTS objectives - not just primarily safety.
• Integrate the Safety Administration Programme with the National Land Transport Programme.
• Create a new agency comprising the activities that would remain in Transfund and the LTSA after transfer of some policy functions to the Ministry. Disestablish Transfund and the LTSA.

These recommendations aim to align the sector to the NZTS - through integrated planning, policy and service delivery, and some changes to organisational structures.

Mostly, the recommendations involve "softwiring" or non-structural changes to "connect" agencies and encourage better ways of working together - greater collaboration and co-ordination and sharing of resources, skills and knowledge. The Government wants decision-making and service delivery to be integrated right across the sector. The Ministry of Transport has been given a new mandate to lead this.

A Transport Restructuring Bill is planned to be passed by Parliament in November 2004 to action the legislative changes required to create the new Crown transport agency, to empower the remaining safety agencies to broaden their focus to include all NZTS objectives and to integrate the Safety programme with the National Land Transport Programme.

Other Recommendations:

• TAIC - maintain the current role and structure of the Transport Accident Investigation Commission.
• AvSec - the Aviation Security Service should continue to remain attached to the CAA.
• Road Safety Trust - the Trust should be reviewed.
• Motor Vehicle Register and Revenue Management - the current arrangements should be reviewed by the Ministry.

What are the Review recommendations intended to achieve?

• Stronger Ministry leadership to achieve delivery of NZTS objectives
• Improved governance of the transport sector
• Clear direction on transport priorities
• Alignment of all transport agency objectives and functions with the NZTS
• A well coordinated, integrated sector-wide approach to developing and delivering transport services 3
• Faster and better quality decisions on transport issues
• Stronger regional presence enabling more effective engagement with local and regional government, business, iwi and other stakeholders, providing for more integrated management of land transport planning, funding and delivery and community-centred transport solutions.
• Improved overall sector performance

Background information on the New Zealand Transport Strategy

The NZTS sets out a vision, principles and objectives for the transport sector.

The government's overall vision for transport is:

By 2010 New Zealand will have an affordable, integrated, safe, responsive and sustainable transport system.

This is underpinned by four principles: sustainability, integration, safety and responsiveness.

The government's objectives for transport, as set out in the NZTS, are:

• Assisting economic development
• Assisting safety and personal security
• Improving access and mobility
• Protecting and promoting public health
• Ensuring environmental sustainability

Such a re-focusing of objectives is a significant move away from the fragmented approach to transport that has been followed in the past. The existing structure of the government transport sector has served the old approach well but it is now outdated.

The changes resulting from the Government Transport Sector Review will enable the sector to take a much broader and collaborative approach to transport planning and management.

The government is taking action to implement the NZTS.

More information

Further information on the Government Transport Sector Review is posted on the Sponsoring Ministers' websites. This includes the full Review Report, an Executive Summary of the Report, the Cabinet paper associated with the Review, the news release announcing the Review outcomes and a simple, visual presentation of the key points. These documents can be downloaded. To view them, please go to http://www.beehive.govt.nz/hodgson or http://www.beehive.govt.nz/mallard 

Queries

Please Email specific queries about the Review.

Downloads

• Presentation: Connecting the Transport Sector (PDF, v7.0, 370kb)