Review of the Public Transport Management Act 2008

In 2009 the Minister of Transport initiated a review of the Public Transport Management Act (PTMA) 2008, and the wider operating environment for the provision of urban bus and ferry services.

This page provides information about the PTMA and the new Public Transport Operating Model.

About the Act

The Public Transport Management Act (PTMA) 2008 came into effect on 1 January 2009. The Act replaced the Transport Services Licensing Act 1989 (TSLA), and provides powers to regional councils to plan and manage urban bus and ferry services within their regions.

Responsibility for the delivery of urban bus and ferry services is split between regional councils (including Auckland Transport), territorial authorities and operators with central government oversight provided by the NZ Transport Agency (NZTA). Regional councils, in partnership with the NZTA, are responsible for planning and funding a public transport system that meets the needs of their communities. Territorial authorities provide public transport infrastructure such as bus lanes, wharves and terminals. Operators are responsible for providing buses and ferries, associated infrastructure such as bus depots, and the delivery of the actual service (eg drivers and ticketing systems).

Urban bus and ferry services are funded through a mix of fare revenue and public subsidies. Fare revenue covers approximately half of the operating cost of services. The public subsidy is split approximately 50:50 between the regional council and the NZTA. The NZTA’s contribution is sourced from the National Land Transport Fund.

Under the PTMA, regional councils can impose a range of controls on operators’ commercial services; from adopting common signage on buses, to requiring operators to run commercial services according to the frequency and times specified in a regional council’s regional public transport plan. In addition, if deemed necessary, a regional council can require an operator to provide all their services under contract to the regional council.

Review of the PTMA

Since the PTMA came into effect, concerns have been raised regarding the effect that the PTMA has on incentives for operators to invest in their bus and ferry assets and take an innovative approach to service development. As a result, in 2009, the Minister of Transport initiated a review of the PTMA and the wider operating environment for the provision of urban bus and ferry services.

The government supports the provision of urban bus and ferry services because of the wider economic and social benefits it can provide. However, over the last 10 years, local and central governments’ increased funding for services has not been met with a commensurate increase in patronage. The government’s goal is to develop an improved operating environment for public transport which will encourage increased use of urban bus and ferry services with less reliance on subsidies.

Public Transport Operating Model

During the course of the review of the PTMA, it became clear legislative change alone would not address all the issues raised around providing public transport services. Work subsequently began on developing a new operating model for the delivery of urban bus and ferry services in New Zealand in partnership with stakeholders.

The new framework, better known as the Public Transport Operating Model, will contribute to the government’s goal of growing patronage with less reliance on public subsidy.