What is the GPS?

While the term GPS might be more familiar when talking about global positioning, in the transport sector it’s more commonly used to refer to the Government Policy Statement on land transport.

Instead of directing us where to go, this GPS helps to direct money across the New Zealand transport network.

How does the GPS work?

The GPS guides investment in transport by providing a 10 year view of how we prioritise spending in the transport network. The priorities set out in the GPS are given effect to by Waka Kotahi/NZ Transport Agency and taken into account by councils when making transport investments.

Where does the money allocated through the GPS come from?

The GPS provides guidance on how around $4 billion of New Zealanders’ money is spent through the National Land Transport Fund each year.  The National Land Transport Fund is a hypothecated fund. This means revenue is ring-fenced for investment in land transport.

Money for the National Land Transport Fund comes primarily from road users through fuel excise duty, road user charges and from motor vehicle registration and licensing fees. There are also some smaller contributions from sources such as the rental or sale of State highway land, and interest from cash invested.

The spending from the National Land Transport Fund is supported by local government funding and financing arrangements, contributing around $1 billion a year.

Why do we need the GPS?

The GPS identifies how much revenue will be raised and sets this aside to:

  • maintain our existing transport network to ensure we can get where we need to go
  • improve our land transport network so that it functions better
  • deliver specific objectives (including for GPS 2018, improving safety, improving access and contributing to environmental priorities), and types of activities (for example roads, public transport, active transport and road policing)