What you need to know
During the 2000s there was rising concern that the cost of subsidising public transport was increasing even though passenger numbers were falling. There were also concerns that road users and rate payers were not getting value for money from financially supporting urban bus and ferry services. In addition, the lack of cooperation between regional councils and public transport operators raised concerns about how far services could effectively be coordinated to improve network efficiency.
In 2009, the Minister of Transport called for a review of the Public Transport Management Act 2008. This resulted in the development of the Public Transport Operating Model (PTOM), a collaboration between the Government, the 3 largest regional councils and public transport operators.
In 2018, we commissioned research looking at the effects of PTOM on bus drivers’ wages and conditions. An evaluation and review of PTOM is scheduled for completion in 2021.
Review of the public transport operating model (PTOM)
The Ministry of Transport is reviewing PTOM to understand how it is working and whether it can be improved.
We are seeking feedback from the sector and the public to ensure we have identified the relevant issues and opportunities as part of our review, and to inform how we design any changes to PTOM.
PTOM review initiated
The Minister of Transport commissioned a review of PTOM to assess whether it had met the original objectives and whether it remains fit for purpose to support the Government’s objectives.
PTOM impact research commissioned, completed and released
In May 2018 we commissioned research into what impacts PTOM had on bus driver employment conditions and wage rates. The research found PTOM had resulted in a more competitive market for operators tendering for contracts and its impacts on bus drivers’ employment conditions and wage rates varied by region, and largely depended on whether bus drivers remained with the same operator, moved to a new operator, left or entered the industry.
New legislation to plan, procure, operate and manage local public transport services through PTOM was established in the Land Transport Management Amendment Act 2013.
PTOM framework approved
Cabinet approved the introduction of a new framework to allow regional councils and public transport operators to develop a public-private partnership to improve delivery of public transport services through collaborative planning and investment.
The Minister of Transport decided to review the Public Transport Management Act 2008 (PTMA) and develop a policy to increase the use of urban bus and ferry services, and decrease their reliance on government funding.