What the Government wishes to achieve - Government Policy Statement

Overview - economic growth and productivity

25. The government’s priority is for land transport investment to support national economic growth and productivity. The GPS will ensure the use of land transport funding does so by directing investment into high quality infrastructure projects and transport services that encourage the efficient movement of freight and people. Of particular importance to this priority are:
• investing in the State highway network, as a key to the efficient movement of freight and people
• generating better value for money from the government’s investment across all land transport activity classes and enhancing the economic efficiency of individual projects.

26. Investing in land transport is particularly important at this time. In the short to medium term the most pressing challenge facing New Zealand is the current global and domestic economic situation, which is contributing to a period of negative or slow economic growth for the country and for other international economies.  Well-targeted land transport investment will keep people in employment, improve productivity, and lay the groundwork for robust economic growth in the future.

27. Investing in the State highway network is important as there are significant constraints on its current capacity to efficiently move freight and people, leading to congestion in New Zealand’s major cities.  Unless investment in State highways is addressed, congestion will continue to negatively impact on economic growth and productivity.  Investment in State highways will also make some of our busiest roads safer.

28. The government’s investment in the land transport system is significant.  With such large amounts of money there is a risk that funds  will not be used as efficiently as possible.  It is important to regularly review spending to ensure it is providing value for money. Over the period of this GPS the government expects there to be a focus on generating value for money within all land transport activity classes.  In particular, more emphasis should be placed on the economic efficiency of individual projects.

29. In pursuing economic growth and productivity, the government also expects to see progress on other objectives.  The Land Transport Management Act 2003 requires the GPS to contribute to the aim of achieving an affordable, integrated, safe, responsive and sustainable land transport system, and also to each of the following:
• Assisting economic development
• Assisting safety and personal security
• Improving access and mobility
• Protecting and promoting public health
• Ensuring environmental sustainability.

30. The government particularly wishes to see its investment contribute to a reduction in the number of fatalities and serious injuries on New Zealand’s roads. Fatalities and injuries have both social and economic costs that are a heavy burden on individuals, families and the wider community.  The government expects improved road engineering to have a positive impact on reducing fatalities and injuries over time.

The impacts the government wishes to achieve

31. The specific impacts the government expects to be achieved through the use of the National Land Transport Fund are set out below.

Short to medium-term impacts

Impacts that contribute to economic growth and productivity
• Improvements in the provision of infrastructure and services that enhance transport efficiency and lower the cost of transportation through:
o improvements in journey time reliability
o easing of severe congestion
o more efficient freight supply chains
o better use of existing transport capacity.
• Better access to markets, employment and areas that contribute to economic growth.
• A secure and resilient transport network.
Other impacts
• Reductions in deaths and serious injuries as a result of road crashes.
• More transport choices, particularly for those with limited access to a car where appropriate.
• Reductions in adverse environmental effects from land transport.
• Contributions to positive health outcomes.

The New Zealand Transport Strategy 2008

32. The New Zealand Transport Strategy 2008 (NZTS) was developed to give a long-term perspective and direction to the transport sector.  It sets out a series of aspirational targets for the year 2040.  The NZTS is a non-statutory document and provides context for this GPS.

33. The government in general terms supports the overall intent of the NZTS, but considers that moving too quickly on modal shift will have a negative impact on environmental and economic efficiency.  

34. The government expects carbon mitigation primarily to occur via new fuels (eg biofuels and electric cars) encouraged via an emission trading scheme, plus some modal shift actions particularly in our major cities of Wellington, Auckland and Christchurch.

35. The government will develop a forward plan for transport during the first three years of this GPS. 

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