What are we seeking to achieve?

The objective is to achieve a transport system that supports and assists long-term economic growth and improves the economic and social well-being of New Zealanders through more productive use of resources.

Outcomes relating to this objective are:

  • growth and development are increasingly integrated with transport
  • transport users increasingly understand and meet the costs they create
  • New Zealand's transport system is improving its international and domestic linkages including inter-modal transfers
  • the efficiency of the transport system is continuing to improve
  • the effectiveness of the transport system is being maintained or improved
  • the negative impacts of land-use developments on the transport system are reducing.

What will we do to achieve this?

Summary of activities

Implement the Next Steps Review - Actions undertaken: 2008-2009

  • Ensure a smooth transition to the New Zealand Transport Agency (NZTA) and to the new funding and planning system.
  • Establish and implement monitoring and review processes, as set out in the legislation for the National Land Transport Programme (NLTP) and its expenditure.
  • Implement the accountability regime for the NZTA

Implement Sea Change – the domestic sea freight strategy - Actions undertaken: 2008-2011

  • 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 government’s policy making and industry business decisions
    • improving industry access to government’s sea freight developmental funding
    • assisting the industry to ensure workforce needs are met in terms of recruitment, training and retention of staff
    • gathering base-line data on national freight movement and associated costs and charges
    • addressing required policy issues, particularly matters related to ports

Implement the updated New Zealand Transport Strategy (NZTS) - Actions undertaken: 2008-2011

  • Support and monitor progress of the implementation of the updated NZTS by:
    • ensuring that the direction of the updated NZTS is known and understood by key stakeholders
    • undertaking Ministry specific actions from the strategy

Land Transport Government Policy Statement (GPS) development -
Actions undertaken: 2008-2011

  • Support and monitor the implementation of the first GPS
  • Ensure that the direction of the GPS is known, understood and actioned.
  • Begin preparation for the second GPS

Heavy Vehicle Productivity - Actions undertaken: 2008-2009

  • 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

Future Revenue Charging - Actions undertaken: 2008-2011

  • Explore a range of future charging systems that would provide for the effective collection of land transport revenue and, where possible, furthers 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)

Regional Fuel Tax (RFT) Implementation - Actions undertaken: 2008-2011

  • 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

Private Public Partnerships (PPPs)4 - Actions undertaken: 2008-2009

  • 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

The Next Steps Review released in May 2007,  identified a number of concerns about the land transport sector, including that  the sector is not achieving value for money and is not fully delivering on the New Zealand Transport Strategy 2002 or the government's  wider economic agenda. The Land Transport Management Amendment Bill, introduced  into Parliament in October 2007, proposes significant changes to enhance the  planning and funding system for New Zealand's land transport system to address  these concerns.

A fully hypothecated (dedicated) fund will be created to  fund the National Land Transport Programme. This will mean there is a much  greater matching of the revenue raised (from road user charges, excise duties  and motor vehicle registration) and the expenditure on land transport by  central government. This should lead to more efficient outcomes. For instance,  if the expenditure needs to increase then it will be necessary to examine  whether the revenue flows should change to fund these needs.

Every  three years a Government  Policy Statement (GPS) will be issued that will be based on a  trends, issues and options paper with which stakeholders will have the  opportunity to contribute. Through the GPS the government will be able to  signal what it considers are the most important transport outcomes to be achieved  in the medium term. This improved guidance for both the national and regional  funding and planning systems should ensure that they contribute to the  government's wider economic agenda and strategic objectives of efficiency.

The Bill makes provision for the establishment of a  single statutory Crown entity, through a merger of Land Transport New Zealand and Transit New Zealand. It also sets out some operating  principles to guide the newly formed New Zealand  Transport Agency. One of these principles is that it must use its revenue in a  manner that seeks value for money.

The Ministry of Transport will also enhance its  monitoring and policy evaluation capability and capacity. Over the next two  years the Ministry will undertake an ongoing evaluation of the outcomes of the Next  Steps Review changes.

How  will we demonstrate success in achieving this?

To demonstrate success in achieving the outcomes  relating to the objective of assisting economic development, we will:

  • Contribute to all outcomes  related to this objective by working towards a safe, responsive, integrated and  sustainable transport network. A programme will be developed to support  implementation of the updated NZTS by 31 July 2008. Following the release of the updated NZTS the programme  will be implemented.
  • Contribute to the outcome  'transport users increasingly understand and meet the costs they create' by  ensuring efficient and equitable revenue collection that achieves both revenue  needs and wider policy objectives. A revenue and charging strategy will be  developed to inform more detailed policy development. 
  • Contribute to all outcomes  related to this objective by enabling better strategic investments which will  lead to an improved transport system in New Zealand. Support will be provided  to the New Zealand Transport Agency and local authorities to implement Next Steps, in accordance with the legislation. 

Policy  advice will be delivered in accordance with the agreed policy quality criteria listed in 'Policy Advice Quality  Characteristics' in the, as  determined through delivery recorded against the project plan.


  1. Public  Private Partnerships (PPPs) are long-term contracts between the public sector  and the private sector covering planning, construction, operation and/or  financing of public infrastructure and services. At the end of the contract,  the facility is usually returned to the government or a local authority.

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