Rail Network Bill - Questions and Answers General
Last updated on
8/08/2008 10:59 a.m.
- What is the purpose of this Bill?
The Bill addresses gaps in the current legislation by extending rail safety legislation to cover a wider number of industry players, and ensuring a clear chain of accountability. It also proposes consolidating existing rail safety legislation into a single Act.
It proposes a more proactive approach to identifying and managing critical safety issues by ensuring key rail participants are licensed, that key safety data are collected, that operators demonstrate they're managing safety risks, and that the Land Transport Safety Authority (LTSA) has more powers to audit, inspect and sanction operators.
The impetus for this Bill has come from changes in the rail industry - particularly the shift from a single network operator to a number of players - which have left gaps in safety accountability. The Railways Bill has also been developed to implement the recommendations made in the Ministerial Inquiry into Tranz Rail (the Wilson Report), which identified gaps in the current legislation relating to rail safety.
- What are the main features of the Bill?
Acknowledging the variety of the New Zealand rail industry, the Bill proposes new provisions to allow appropriate (see rail industry) greater flexibility in safety monitoring and safety enforcement. In particular, this would be done by
- licensing additional participants
- having a "high level" document called the "safety case'" which will be approved by the Land Transport Safety Authority
- requiring a rail licence holder to appoint a safety manager, who will be responsible for the safety of the operation
- clarifying the Director of Land Transport Safety's powers so they are appropriately tailored to the seriousness of a safety breach
- replacing the current audit system with a more generic "safety assessment", which is more flexible and comprehensive
- requiring those operators whose safety record is in need of, or could benefit from, improvement to develop an annual safety improvement plan
- introducing court-imposed penalties for non-compliance
- requiring operators to supply additional safety-related information to the Land Transport Safety Authority, which will allow the Authority to identify emerging trends and be proactive in safety regulation.
The Bill would apply to the rail industry as a whole (including voluntary operations), but would allow the system to be tailored to suit the type of operation.
Contractors of rail operators would also be required to carry out their duties and functions in keeping with the standards of their employer's safety case, in written agreements.
- When will the Bill come into force?
The Bill will come into effect in the next 12 months. The Bill was tabled in the House on 8 July 2003 and Select Committee will consider the Bill for six months. Then it will be returned to Parliament for final consideration before being given the Royal Assent. Once the Bill is signed, there will be an implementation period, to allow implementation and transition to take place.
- Who will have to be licensed?
All existing licensed operators would have to be re-licensed under the new regime. Those who provide access to the track (access providers) would also have to become licensed. Other rail participants would not need a licence. However, all rail participants must be covered by the safety case of either an operator or an access provider.
- What is new about the Bill?
What would change?
Licensing
All existing licensed operators would have to re-licence.
Those who provide access to the track (access providers) would have to become licensed.
Documenting
All licence holders would need to prepare and submit a high level "safety case" for approval and publication by the LTSA.
Manuals and other operational procedure documents would be used for safety assessment purposes.
Assessing
Annual safety audits would be replaced with regular safety assessments on an "as needed" basis. These would be wider in scope than the present "audit" and could include spot-checks, audits, inspections and discussions with staff.
Auditors would no longer be appointed by rail operators. Instead, assessors would be appointed by the LTSA and their costs charged back to the licence holder.
Enforcing
The Regulator would be able to impose a greater variety of penalties for safety breaches.
Costs
Existing fees and charges would be reviewed.
Licence holders would be able to control their costs, as the better their safety record, the less regulatory intervention (for which they would have to pay) would be required.
- How will the Bill improve rail safety?
The Bill proposes a more proactive approach to identifying and managing critical safety issues by ensuring key rail participants are licensed, that key safety data are collected, that operators demonstrate they're managing safety risks, and that the Land Transport Safety Authority has more powers to audit, inspect and sanction operators.
- What would operators have to do to comply with the Bill?
This Bill proposes that all rail operators and rail access providers be licensed. This means that all rail operators and all those who provide access to the track (access providers), would have to apply for a new licence, whether or not they already hold a rail service licence. While not all rail participants would need a licence, they must all be covered by the safety case of either a licensed operator or a licensed access provider.
To gain a rail licence, participants would have to submit a safety case for approval by the Director of Land Transport Safety. The safety case would contain key information relating to areas of an operation that are critical to safety (including identification and management of safety risks, safety training, and monitoring and reporting procedures), and it would be publicly available.
Rail participants would have increased reporting requirements and these would be stated in the rail participant's approved safety case. In addition to the already required accident and incident reporting, key performance indicators may also be required at the reasonable discretion of the Director of Land Transport Safety. Clause 19(2)(e) outlines this in detail.
The Bill proposes to replace annual audits with a safety assessment, which is conducted as regularly as considered necessary by the Director of Land Transport Safety to be sure that the operation is safe.
The government is dedicated to ensuring that some non-commercial rail operators (particularly small, heritage operators) are not unduly penalised by costs that may be associated with implementing this new safety regime. Fees and charges are still being finalised, and ways to keep increased costs to a minimum are being considered.
- How will the Bill affect rail customers?
Customers (whether passenger or freight) will benefit from an improvement in rail safety.
- Could it affect prices for rail customers?
That's a decision for the industry to make and we're interested in hearing from them through the Select Committee process, whether they see any increased costs that will need to be passed onto consumers.
- Will it guarantee the future of a number of regional lines?
No because the purpose of the Railways Bill is to address rail safety, not commercial, outcomes.
- Will people/rail be safer?
That is the intention of the Bill, which will ensure that all those involved in, or contributing to, rail operations are accountable for their actions or for decisions.
- Will rail customers get better services?
In the area of safety, yes, but the Bill is not designed to address other service issues that are not related to safety.
- Will we get better quality rail infrastructure?
Only in the sense that changes in rail infrastructure could be made to ensure a particular operation is safe. Other infrastructure changes required for non-safety reasons are not covered by the Bill.
- Will it fix all the problems we've been having with the rail system?
Only some of them - those relating to safety. The current problems are longstanding and are not easily addressed as not all of them relate to safety. They are a combination of commercial, engineering, and operational issues.
However, we do see the Bill having an effect on the safety issues through licensing more operators, requiring a safety case, carrying out regular assessments of operators, and through the LTSA, having more powers to regulate and monitor rail licence holders.
- How does the Bill relate to the current problems Tranz Rail is having?
The purpose of the Railways Bill is to address rail safety, not commercial, outcomes. Whoever the operator (whether it's Tranz Rail or another operator), they will still have to follow the safety provisions laid out in the Bill.
- Why introduce the Bill now?
The Railways Bill is a culmination of two years work, undertaken as a result of recommendations of the Wilson Report. The government had originally planned to introduce legislation early this year, but delayed this while it worked through issues related to small heritage operators.
The Bill is now ready and there are no good reasons to delay its introduction. The Bill will have a positive effect on rail safety as it brings about a more robust safety regime. This will help manage safety better in a devolved environment, as it extends the licensing regime to cover those who provide access to the track. An example is Auckland, where the rail operator and track owner are different entities. It will also enable those who are interested in investing in New Zealand railways to understand the proposed regulatory regime.
- How can the public make submissions/comments on the Bill?
The Select Committee will consider the Bill for six months. If you wish to comment on the contents of the Bill during this process, please contact:
Office of the Clerk of the House of Representatives
Phone:
04 471 9999
Fax:
04 473 2439
Website: www.clerk.parliament.govt.nz/Programme/Committees
Media Release:
Railways Bill delivers promised safety regime