Operating Intentions - Annual Report 2008/09

Standards/targets 2008/09:
Work with industry and government stakeholders toward achieving major growth in domestic sea freight by 2040, by:

• gathering and disseminating information through the Maritime Liaison Unit to assist the government’s policy making and industry business decisions
• improving industry access to government’s sea freight developmental funding
• assisting the industry to ensure that workforce needs for recruitment, training and retention of staff are met
• gathering base-line data on national freight movement and associated costs and charges
• addressing required policy issues, particularly matters related to ports and supply chain issues and trade issues.

• The Sea Freight Development Unit (formerly the Maritime Liaison Unit) has been undertaking this role since its establishment in March 2008.
• First round of domestic sea freight development funding applications was processed by NZ Transport Agency and decisions announced December 2008. Future rounds were cancelled, following revisions to the GPS.
• An industry workforce group has developed an action plan which is now in progress. A study of future workforce requirements was completed in April 2009.
• Feasibility work on data gathering has been carried out with ports, Customs, MAF and other government departments.
• The initial scoping of related policy issues is still in progress.

With the revision of the GPS and the announcement to discontinue the domestic sea freight development fund, the focus was shifted away from funding assistance, to concentrating on efficiency and removal of barriers and hurdles to assist coastal shipping without the need for subsidies.

To better understand this, a programme of stakeholder visits is currently being undertaken to New Zealand’s largest exporters and importers. The consultation is nearing completion and a final report is expected in September 2009.

Standards/targets 2008/09:

• Undertake consultation and case studies/trials.  
• Design framework for trials of heavier or longer vehicles on selected routes.
• Develop a discussion document and undertake consultation.
• Design and implement an agreed system.

Actions achieved 2008/09:

• Consultation undertaken with key transport stakeholders, road controlling authorities and interested parties.
• Trials of vehicles operating outside the current mass and dimension limits carried out.
• Amendment to the Land Transport Rule – Vehicle Dimensions and Mass drafted and sent out for consultation.
• Work on the project is ongoing and is currently ahead of schedule.

Progress to date has exceeded our intentions and expectations.  

Standards/targets 2008/09:

Explore a range of future charging systems that would provide for the effective collection of land transport revenue and, where possible, further social, economic and environmental objectives. This work includes:

• assessing the feasibility and desirability of road pricing with a focus on Auckland
• assessing the feasibility of introducing the electronic collection of road user charges

• Regional Fuel Tax (as outlined below)

Actions achieved 2008/09:

• Work on road pricing has not been undertaken as it does not fit with the new government’s policy priorities.
• The Road User Charges (RUC) Review reported on 31 March 2009 and set out recommendations for revenue system improvements, including the potential for electronic systems and trialling of electronic charging. The Ministry is now developing further advice on the possible implementation of these recommendations.
• The Auckland Regional Fuel Tax (RFT) Scheme was revoked on 11 May 2009, as the new government decided to replace RFT with increases to national fuel excise and RUC rates.

Standards/targets 2008/09:

• Implement the regional fuel tax provisions of the Land Transport Management Amendment Act (LTMA) 2008, if passed.
• Undertake assessment of regional fuel tax schemes submitted under the LTMA.

Actions achieved 2008/09:

• The repeal of the regional fuel tax provisions of the LTMA is planned for 2010.

• The Auckland Regional Fuel Tax Scheme was revoked on 11 May 2009 (as above).

Standards/targets 2008/09:

• Advise on the feasibility and viability of a PPP for the Auckland Waterview State Highway Connection.
  
  
  
  
  
  
  
  
  
• Apply the findings of the above work to assess the appropriateness of the PPP model for future projects.

Actions achieved 2008/09:

• The Waterview Connection Procurement Steering Group reported to government on its findings regarding a possible PPP for the Waterview Connection Project in June 2008. The Ministry and the Treasury then provided a joint business case to the Ministers of Transport and Finance for completing the Waterview Connection. The business case was released on 30 January 2009. It included advice about the possibility of using a PPP to undertake the project.
• The findings of the above work have been used as a basis for considering potential PPP projects.

Global financial conditions have led to investors being reluctant to finance projects where there is demand and revenue risk, and so PPPs are not currently a viable option.
The planned actions provided a good basis for future policy advice. Consideration of PPPs will be ongoing.

• Analyse the transport proposals in the report of the Royal Commission on Auckland Governance.
• Provide the government with advice on how to respond to any transport aspects of the report of the Royal Commission on Auckland Governance.
• Provide input to other department’s policy advice on Auckland Governance.

Actions achieved 2008/09:

• Provided advice, from a transport perspective, on the Report of the Royal Commission on Auckland Governance.
• Provided advice on the preferred transport governance framework.  
• Provided transport input to Auckland Governance work by other departments.

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• Determine barriers to improving efficiency and productivity in the provision of public transport.
• Address high priority barriers through short-term interventions.

• Feedback sought from the main public transport stakeholders (providers, funders and planners) in March and April 2009.
• Advice provided to the Minister in June 2009 on potential short-term interventions to address high priority barriers.

Good progress has been made on this intervention. This work will continue during 2009/10.

Standards/targets 2008/09:

• Oversee the delivery of the Getting there – on foot, by cycle Strategic Implementation Plan 2006-2009 initiatives to contribute to the uptake of fundamentally sustainable modes of transport.
• Development of Monitoring and Evaluation Action Plan.
• Undertake Transport Sector Alignment Review.

Actions achieved 2008/09:

• The Ministry provided input into the seven NZ Transport Agency initiatives. This included comment during scoping and development, and monitoring progress.  
• A monitoring framework has been developed and communicated with stakeholders. Implementation is currently being considered.
• After discussions with Police and the NZ Transport Agency it was decided by the Ministry in February 2009 that the changes resulting from the Next Steps review had superseded this initiative.

Good progress has been made in light of higher priorities for the Ministry and the NZ Transport Agency. 

Getting there – on foot, by cycle (2009-2012)

Standards/targets 2008/09:

• Ensure the development and implementation of the next three-year plan for Getting there – on foot, by cycle (2009-2012)

Actions achieved 2008/09:

• The Minister was advised in June 2009 that a brief operational action plan, rather than a second implementation, will be developed.

The Ministry and the NZ Transport Agency will discuss the approach and content of the action plan in early 2009/10.

• Oversee implementation of RFT provisions in the Land Transport Management Amendment Bill (LTMA), if passed.
• Assess proposed RFT schemes, including those designed to enable funding of regional priorities for public transport and walking and cycling infrastructure development.

• The repeal of the RFT provisions of the LTMA is planned for 2010.
• The Auckland RFT Scheme was revoked on 11 May 2009 as the new government decided to replace RFT with increases to national fuel excise and RUC.

Standards/targets 2008/09:

• Oversee implementation of the Public Transport Management Act (if passed) including the development of guidelines by NZ Transport Agency.

• The Public Transport Management Act came into force on 1 Jan 2009.
• The Ministry published fact sheets on the Ministry of Transport website.
• The NZ Transport Agency published guidelines for regional councils.

Further implementation is on hold, in light of the Minister’s decision to review the Act. 

• Ensure the development and implementation of national guidelines for accessible public transport information.

• The Ministry commissioned research into the current level of accessibility of public transport information. However, further work did not progress in 2008/09 because of higher work priorities for the Ministry. This will be considered in the context of the Progress Plan developed by the Ministerial Disability Committee. The Progress Plan is scheduled to be published in December 2009.

• Provide advice to the Minister on options to change the Public Transport Management Act.

• Briefings have been provided to the Minister. The Ministry has held formal meetings with key stakeholders and sought comment on an options paper.

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• Work with the Ministry of Social Development to provide advice on transport aspects of the SuperGold card.

• Free off peak scheme introduced in October 2008. The NZ Transport Agency is currently scoping the terms of reference for the review of the scheme that is scheduled to start in August 2009.

Standards/targets 2008/09:

• Finalise the New Zealand Rail Safety Strategy, which will identify initiatives to improve safety on New Zealand's railways.
• Identify and implement rail safety improvements.  

• An early draft of this Strategy has been circulated to interested parties and some submissions have been received. Now that the new operational structure of the main rail network is in place, work will progress towards finalising the Strategy.  
• Liaison with ONTRACK and the NZ Transport Agency on funding allocation, which includes upgrades to railway level crossings. 

Standards/targets 2008/09:

• Develop standards and guidelines to improve commuter rail security in Auckland and Wellington.

Actions achieved 2008/09:

• Standards were developed and are awaiting adoption by industry.

• Complete implementation of the Road Safety to 2020 discussion document, Safer Journeys. 

Actions achieved 2008/09:

• Some actions implemented as part of the Road User Rule. Others moved to be part of the Road Safety to 2020 Strategy.

Standards/targets 2008/09:

• Develop a new Strategy to replace the existing Road Safety to 2010 Strategy, setting out the government’s vision and long-term policy direction for road safety for the period 2010-2020.

• Stakeholder engagement before the discussion document has been completed. The discussion document was released on 18 August 2009. The Strategy is to be released in December 2009. 

Standards/targets 2008/09:

• Ensure that New Zealand is able to meet new United States air cargo security requirements that come into effect in 2011.

• The Ministry has maintained a watching brief on this issue. No action has been required.

• Improve passage of people and freight across our borders, while ensuring an adequate level of protection – delivered through the Border Sector Governance Group (BSGG).
• Participate in the BSGG. 

Actions achieved 2008/09:

• Contributed to advice delivered to the government through the BSGG on streamlined Trans-Tasman air facilitation.
• Participated in eight BSGG meetings at Chief Executive level, nine at senior officials level.
• Chaired seven meetings of the BSGG Steering Committee on Passenger Facilitation and Risk Management at Airports.

• Undertake a review of domestic aviation security and provide recommendations to government.

• A review was undertaken and options to address identified security risks were developed. The government made decisions in May 2009 on which options it wished to pursue.

Standards/targets 2008/09:

• Develop further policy to reduce noise levels from modified vehicle exhaust systems.
• Investigate options for testing in-service emissions, particularly for diesel vehicles.

• A further amendment to the Vehicle Equipment Rule is being drafted that will tighten the noise limits for vehicles entering the fleet.
• Project scoping documents have been produced for this work. The government’s priorities have changed and this project is on hold.  

• Evaluate, and, where possible, quantify the benefits of increasing walking and cycling activity using a health impact assessment methodology. Benefits to be assessed include health, social, safety, economic and environmental impacts. 

• The NZ Transport Agency produced an updated assessment of walking and cycling benefits. These were incorporated into the project evaluation manual in January 2009.

Work has been delivered by the NZ Transport Agency, and the Ministry will maintain an overview of the project evaluation manual. 

• Ensure the development and implementation of the next three-year plan for Getting there – on foot, by cycle (2009-2012). 

• The Minister was advised in June 2009 that a brief operational action plan, rather than a second implementation, will be developed.

Standards/targets 2008/09:

• Contribute to the development of national policy on climate change and international negotiating positions.

• Contributions were made to policy development on a domestic emissions reduction target for 2020, a departmental report for the Emissions Trading Scheme Review Select Committee and regulations for liquid fossil fuels and unique emission factors.
• Throughout the year meetings were coordinated by the Transport Fuels Technical Advisory Group on the emissions trading scheme.
• Position papers were developed on international transport fuels for negotiators attending a series of United Nations Framework Convention on Climate Change meetings.
• Position and review of papers were prepared for attendance at the International Maritime Organisation’s Environment Protection Committee in London in July 2009.
• Research on fuel efficiency of commercial vehicle fleets was concluded and finalised. Reports were published in June 2009. Implementation of recommendations is underway.

• Develop further policy to reduce noise levels from modified vehicle exhaust systems.

• Investigate options for testing in-service emissions, particularly for diesel vehicles. 

Actions achieved 2008/09:

• A further amendment to the Vehicle Equipment Rule is being drafted that will tighten the noise limits for vehicles entering the fleet.
• Project scoping documents have been produced for this work. The government’s priorities have changed and this project is on hold.

• Position New Zealand to be one of the first countries in the world to widely deploy electric vehicles and support the newly established Vehicle, Energy and Renewable Group (VERG).

• The VERG served its initial purpose of bringing government, industry and academics together to discuss initial options for introducing electric vehicles into New Zealand. The group has now been disestablished.
• The government decided that New Zealand would be a fast follower of electric vehicle technologies. To encourage interest in electric vehicles, light electric vehicles have recently been given an exemption from RUC until 2013. 

• Develop a standard or average fuel economy, based on grams of CO2/km, for new and used light vehicles entering the New Zealand fleet out to 2015. 

• The government decided that no further work be carried out on developing a Vehicle Fuel Economy Standard at present.

• Provision of transport methodologies, such as travel plans to support other agencies.
• Ensure that the Ministry meets its requirement under the Carbon Neutral Public Service programme.
• Monitor and minimise the impact of the operations of the Ministry and its staff on the environment. 

Actions achieved 2008/09:

• The Ministry has developed a Travel Plan.

• The Carbon Neutral Public Service programme is no longer an active programme.

• The Ministry continued to ensure that staff are conscious of good environmental practice but monitoring was reduced following the new government’s change in approach.