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Output class: policy advice

Through this output class, the Ministry provides policy advice on the transport modes and other ministerial support services.

This output class is supported by five outputs: road, rail, aviation, maritime and multi-modal.

 Actual 2010/11Performance measures Actual 2011/12 Standards/targets 2011/12
 98 percent  Key initiatives contained in the annual work programme are completed or progressed as agreed, or as subsequently amended by the agreement between the Minister and the Chief Executive. Not achieved, 90 percent completed as agreed  Achieved as per the annual work programme 
Achieved in accordance with re-negotiated time frames  Rules and regulations are developed as specified in the agreed annual rules programme. Aviation: 2 of 4 rules signed
Road: 4 of 4 rules signed
Maritime: 4 of 6 rules signed 
Priority work as detailed in the work programme 
Not measured  Scope for redesigned rules development process agreed by 31 July 2011 Achieved  Achieved 
Achieved  Legislation development and issuing of drafting instructions as agreed with the Minister(s) for the relevant calendar year. Achieved  Achieved 
70 percent  Percentage of policy papers submitted to the annual survey by NZ Institute of Economic Research that receive a score of 6.5 out of 10 or more. Not achieved 83 percent  100 percent 

While all of the Ministry’s policy advice papers are subject to peer review and assessment against quality characteristics, the Ministry considers that this only provides part of the picture of quality. The Ministry utilises the NZ Institute of Economic Research to provide an external assessment and benchmark for the quality of our policy advice. The Ministry’s assessment mean score in 2012 was 7.3, a significant improvement from the previous mean of 6.9.

The Ministry’s annual work programme with the Minister is a ‘living’ document that is subject to change throughout the year in discussion with the Minister. Quarterly reports to the Minister identify new, deferred and cancelled projects. In addition, changes to milestones and time frames are agreed with the Minister through briefings and discussions on individual initiatives.

The Ministry’s 2011–2014 Statement of Intent outlined its programme of key deliverables for the period covered by this annual report. The key deliverables were separated by mode and a desired impact was provided. It is acknowledged that some of those impacts are long term in their nature, and the Ministry expects to be demonstrating their success by 2014 as indicated in the 2011-2014 Statement of Intent. This annual report has, where possible, recorded the deliverables against each of the planned actions.

A progress update has been provided for initiatives that span more than the single reporting year covered by this report.

Output: Road


 Actual 2010/11Performance measures Actual 2011/12 Standards/Targets 2011/12 
 New Support provided for the implementation of 2012–2015 Government Policy Statement on Land Transport Funding (GPS 2012)  Achieved Achieved
 New Actions from Safer Journeys first action plan are implemented according to agreed timeframes 28 of 34 actions are complete, with the last actions being delivered by 31 December 2012. Achieved
$7,367,354 Cost
This output is produced within the overall output class appropriation (GST exclusive)
$8,873,496 $8,213,000

The Government Policy Statement on Land Transport Funding 2012/13–2021/22 was published in July 2011 and is for the period 2012–2015. The amended timeframe was as agreed with the Minister. The Ministry supported the implementation of the GPS 2012 through a range of work that included:

  • preparing speeches, website and other support material
  • advising the government on the required legislative changes to set fuel excise duty and road user charges rates as outlined
    in GPS 2012
  • monitoring the development and management of the Road Maintenance Sector Taskforce that was proposed in GPS 2012
  • working with the Treasury and the NZ Transport Agency on the detail of the short-term borrowing facility outlined in GPS 2012 and seeking government agreement to it
  • working with the NZ Transport Agency as necessary to develop the National Land Transport Programme


 2011/12 Planned actionsDeliverables 
Develop and implement land transport safety initiatives.

Implementing the first Safer Journeys Action Plan 2011/12 and the legislative changes from the Land Transport (Road Safety and other Matters) Amendment Bill, the Driver Licensing Rule and the Road User Rule.

Impact sought
By reducing deaths and injuries on the roads, we will reduce social costs and deliver a more efficient, effective and safer transport system.

Safer Journeys Action Plan 2011/12:
The Ministry completed 82 percent of the actions it was responsible for. The remaining actions are expected to be completed by December 2012.

Ministry actions included: implementing the raising of the minimum driving age, introducing zero blood alcohol content for youth, the alcohol interlock programme and tougher penalties for dangerous driving.

The Ministry also provided policy advice on new initiatives including: child restraints, red light cameras, ‘R’ plates for restricted licences, drug driving, compulsory third party insurance and vehicle power restrictions for novice car drivers.

The Ministry worked with road safety partners to develop many other initiatives such as establishing the Centre of Road Safety Intelligence and developing a Safer Journey Communications Strategy that will embed the Safe System Approach.

Review regulation and legislation to improve land transport outcomes while reducing compliance costs where possible for transport users

Identification of further options to simplify and streamline land transport rules and legislation.

A new Road User Charges Act and supporting regulations, agricultural vehicle reform, vehicle licensing reform, amendments to the Land Transport Management Act.

Impact sought
Land Transport regulations are simpler and more streamlined allowing transport outcomes to be delivered with minimal delay and reduced compliance costs.

A new system for road user charges
The Road User Charges Act 2012 was passed in February and new road user charges regulations came into force on 1 August 2012. The reformed regulatory framework will reduce compliance costs leading to greater efficiency in the freight sector and help grow the economy by making the road user charges system simpler and fairer (refer page 30 for more information).

Agricultural vehicle reform
The Ministry led a review team with NZ Police, NZ Transport Agency and the Department of Labour to develop options for simplifying and reforming the transport law relating to agricultural vehicles and better align it with the needs of the agricultural sector. Reforms will remove barriers to increased productivity and economic growth by reducing compliance costs without compromising safety. The main changes will amend the laws relating to work time, road user charges and vehicle inspection.

After feedback on a consultation document and workshops, the Ministry undertook further cost benefit analysis and a regulatory impact analysis that informed government decisions in August 2012.

Vehicle licensing reform
The Ministry developed options for reform of vehicle licensing that have the potential to save households and businesses time and money, and reduce the volume of infringements in the criminal justice system, while maintaining road safety. Change will impose some implementation costs on the government and could have financial impacts on businesses that do inspections. A discussion document is being developed that is expected to be released for public consultation in September 2012.

The project has been trialling a collaborative approach, jointly with NZ Transport Agency. It involves the Ministry working closely with other government departments such as ACC, the Ministry of Business, Innovation and Employment and the Ministry of Justice as well as early and ongoing engagement with key industry stakeholders.

Land Transport Management Act
The Ministry, in consultation with Local Government NZ, the Automobile Association, the Land Transport Forum and regional councils, developed a more effective, efficient decision making process for land transport expenditure decisions that will reduce compliance costs for the sector and advance economic growth. These changes are incorporated in the Land Transport Management Bill. The Bill, that was introduced to Parliament on 13 August 2012 also introduces legislation that simplifies the process of approving tolling and public private partnerships while maintaining robust approval processes and introduces changes to the public transport operating model (refer page 4).

Land transport rules
The Ministry worked with NZ Transport Agency to complete amendments to the following rules in 2011/12:

  • Driver Licensing Amendment Rule 2011
  • Road User Amendment Rule 2011
  • Land Transport Omnibus Amendment Rule 2011
  • Passenger Services Vehicle Amendment Rule 2012 (signed in July 2012)
Align policy on investment, planning and management of roads with the government’s desired outcomes

Publication of the Government Policy Statement on Land Transport Funding 2012-2015 in mid 2011.

Impact sought
Increased efficiency of national and urban networks to enhance economic activity, meet affordability needs of communities and use funds more efficiently.

Government Policy Statement on Land Transport Funding 2012-15
The Government Policy Statement 2012 was approved by the government and published in July 2011. It sets outcomes and priorities for the investment of the National Land Transport Fund from 1 July 2012.

Its publication will allow the transport decisions taken by the NZ Transport Agency and local authorities and other organisations to be aligned with the government’s outcomes and priorities. The government investment in the National Land Transport Fund over the next 10 years will focus on projects supporting economic growth, value for money and road safety

Output: Rail


 Actual 2010/11Performance measures Actual 2011/12 Standards/Targets 2011/12 
$2,583,764  Cost
This output is produced within the overall output class appropriation (GST exclusive) 
$417,741  $495,000 
 2011/12 Planned actionsDeliverables 
Develop and implement operating models for metro rail services in Auckland and Wellington, and monitor rail infrastructure upgrades in Auckland and Wellington. 

Contribute to operations and upgrades within the agreed operating model.

Impact sought
Streamlined ownership and operating arrangements that will improve efficiency and risk management of the significant public investment in urban passenger rail services.

Improved services for communities.

Development and implementation of operating model for Auckland and Wellington metro rail
The Ministry completed its contribution to the upgrades for the Auckland and Wellington metro rail systems with Auckland Transport signing a purchase agreement for 57 three-car railway units from Spain in late 2011.

Provide advice on the implementation of the KiwiRail Turnaround Plan and outcomes achieved in conjunction with Treasury. 

Second opinion advice on KiwiRail Group performance and funding of the Turnaround Plan.

Impact sought
KiwiRail has the required resources to become commercially viable and contribute to growing the economy.

Advice on implementation of the KiwiRail Turnaround Plan
The Ministry provided input into the Treasury’s advice with respect to the capital restructuring that led in turn to the May 2012 announcement of the government support for year three of the KiwiRail Turnaround Plan. This involved a $250 million investment in 2012/13.

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