Land Transport New Zealand

Annual Report

for the year ending 30 June 2006

This document is also available in PDF (1.72 MB)

This Annual Report records our achievements in pursuing our strategy to ensure delivery of the government's land transport objectives and wider transport vision.

Table of contents

• Chair's report
• Chief Executive's report
• Land Transport New Zealand Board
• The year in review by group
• What we do
• Achieving operational excellence
• Statement of responsibility
• Statement of service performance
• Statement of accounting policies
• Financial statements
• Audit report
• Supplementary information
• Glossary of terms
• Appendix - Land Transport NZ's functions

Chair's report

I am pleased to present Land Transport New Zealand's Annual Report for the year ending 30 June 2006.

Land Transport New Zealand (Land Transport NZ) is responsible for promoting land transport safety and sustainability through carrying out a wide variety of functions, ranging from operating the Motor Vehicle Register to allocating funding. Our statutory objective is to contribute to an integrated, safe, responsive and sustainable land transport system.

Over the past 12 months, Land Transport NZ has continued to develop a partner and service-oriented organisation. We seek to achieve operational excellence through continuous improvement.

This year has again seen a big increase in the amount of funding that we have been able to allocate to roading, public transport and other land transport activities such as demand management, walking and cycling. Local and regional councils are our funding partners and the staff in our regional offices work hard with council staff to assist and advise in improving asset management and infrastructure and service development. Transit New Zealand's state highway development has increasingly gained momentum, with an unprecedented number of large complex projects underway.

The creation of Land Transport NZ has combined the three 'Es' of enforcement, education and engineering to provide an integrated focus on safety. There is no room for complacency though; while fatalities have continued to fall, hospitalisations have not.

The majority of our staff continue to perform those functions that are fundamental for the operation of the land transport system, such as motor vehicle registration, issuing of driver and transport service licences, regulatory enforcement, collection of road user charges and the development of land transport rules.

The coming year will see the implementation of a new business model for the way Land Transport NZ interacts with the commercial road transport industry, with a focus on working with operators to assist them in meeting the regulatory requirements of the industry.

Board members have continued to guide the organisation with expertise and enthusiasm. It is with regret that we farewelled David Stubbs in April this year, and we thank him for his extraordinarily valuable contribution to Land Transport NZ.

Our Chief Executive, Wayne Donnelly, has led his management team and the staff of Land Transport NZ superbly through a year of ongoing change.

Land Transport NZ looks forward to positive and proactive engagement with the land transport sector over the next year.

Dr Jan Wright
Chair
Land Transport New Zealand

Chief Executive's report

By the end of the 2005/06 financial year, Land Transport NZ had completed the process of structurally merging the Land Transport Safety Authority and Transfund New Zealand. This process had to precede the development of a vision and mission and the broad strategies that will guide Land Transport NZ's existing and developing roles under the Land Transport Management Act 2003.

At the time of the restructuring, the decision was taken to organise our business around our various customer bases, which includes individual New Zealanders, road transport and rail operators, industry groups, New Zealand Police, Transit New Zealand, local government and regional councils, communities, government agencies and central government. This decision provided a sound foundation from which we have continued to meet customer needs while developing our direction as a new organisation. This in turn allowed us to achieve a meeting of the 'hearts and minds' of our staff - those from the merged organisations and those who have more recently become staff members.

Our progress over the last year has been guided by these facts:

Land transport is one of the key platforms for achieving sustainable development in New Zealand - one of the means by which New Zealanders will achieve their economic, social and environmental well-being. Our vision therefore is 'Land transport that leads to a better New Zealand'.

Everyone who wants to do anything in land transport has to transact with Land Transport NZ. Therefore, we must add some value or make some improvement through these transactions. This leads to our mission of 'Improving land transport for all New Zealanders'.

Our business is about achieving sustainable and safe land transport, while also ensuring value for money. Our strategy has to make the concepts of 'sustainable' and 'safe' understandable to all our staff. We must be able to operationalise 'sustainable' and 'safe' through each of our functions, in the context of pursuing operational excellence.

The achievement of objectives outlined in the New Zealand Transport Strategy and of contributing to integrated, safe, responsive and sustainable land transport is dependent on the collaboration and supportive choices and actions of all our customers and partners. Our strategy has to be that the way we work promotes sustainable and safe responses from all New Zealanders.

The leadership of our Board has provided the impetus, guiding direction and support for the endeavours of management and staff this year. I would like to express my thanks to our Board members for their constant dedication and expertise throughout the year. Their leadership has been motivational and created real momentum to take Land Transport NZ forward into the coming financial year. We farewelled David Stubbs from the Board in April this year and I would like to offer my sincere thanks for the wealth of knowledge and expertise he has imparted, and the invaluable contribution he has made to the organisation.

During the year, we have carried out our activities and met the requirements of government, our partners and customers in a professional way. Feedback from our customers and partners reflects improvement in some areas and perhaps what may be described as tolerance in others. Our annual surveys have provided us with useful information to make improvements for the future.

Within Land Transport NZ, we have successfully completed one of the most complex national land transport programming processes yet, with challenges presented by cost escalations across the board, and the necessary coordination with the government budget process. Good progress has been made in areas such as the development of a new compliance strategy for the commercial road transport industry, which reflects the new business model for working with industry and ensures a 'level playing field' for all players.

In these two areas of our work, as with all parts of our business, we have appreciated the positive support from our partners and industry stakeholders. Our highlights and achievements for 2005/06 are listed further through this report.

I wish to acknowledge the support, dedication and professionalism of Land Transport NZ staff over the year as they met the needs of their respective roles and also found time to contribute to organisation planning and development workshops. There have been many examples of people going well beyond the call of duty.

If 2005/06 was the year of getting ourselves organised, then 2006/07 is the year for developing our capability and fine-tuning the necessary working relationships we must nurture with our partners and industry representatives. This is the goal that will underpin our activities over the coming year and we look forward to this opportunity.

Wayne Donnelly
Chief Executive
Land Transport New Zealand

Land Transport New Zealand Board

Land Transport NZ is governed by a board of six to eight members appointed by the Minister of Transport.

Dr Jan Wright | Chair

Based in Wellington, Jan is an independent policy and economic consultant, working primarily on health and environmental policy for a number of government agencies. She has a doctorate in public policy from Harvard University and a Masters degree in Energy and Resources from the University of California. Jan was a member of the inaugural Transit New Zealand Authority from 1989 to 1991 and a past member of the Energy Efficiency and Conservation Authority. She was Chair of Transfund New Zealand and is a member of the Transit New Zealand and the Accident Compensation Corporation boards.

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Paul Fitzharris | Deputy Chair

Based in Christchurch, Paul retired from the NZ Police in 2001 as Assistant Commissioner. During the latter part of his career he was Acting Deputy Commissioner and represented the police on the National Road Safety Committee. He is currently a member of the Legal Aid Review Panel and Chair of the Prostitution Law Review Committee.

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Gerry Te Kapa Coates

Based in Wellington, Gerry is an independent professional engineer and consultant. He has been active for many years in the Institution of Professional Engineers New Zealand and was President from 2003 to 2004. Gerry is of Ngai Tahu descent and is particularly concerned about sustainability and ethics. He founded the group Engineers for Social Responsibility in 1983. He comments widely on technology issues and consults in the fields of forensic engineering, governance and conflict resolution.

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Bryan Jackson

Based in Waikanae, north of Wellington, Bryan holds a number of directorships in the motor trade, education and transport sectors. He has extensive experience in the transport and automotive industry. Bryan is a professional director and the Chair and Managing Director of Jaclan Investments Limited. He was a member of the Transfund New Zealand Board. Bryan is a Justice of the Peace.

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Greg Presland

Based in Auckland, Greg is the principal of Presland and Co, a Waitakere law firm. He practises in a variety of areas but has considerable experience in traffic law and land law. Greg is Deputy Chair of the Film and Censorship Review Board. He has served as a councillor on the Waitakere City Council and has been involved in aspects of Auckland's transport issues.

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Dr Janet Stephenson

Based in Dunedin, Janet is a planner with 16 years' experience working for local authorities, the Historic Places Trust and as a planning consultant. She currently lectures in planning and coordinates an energy research initiative at the University of Otago and is close to completing her PhD. Janet has a particular interest in sustainability, culture, energy and the environment.

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David Stubbs

Based in Tauranga, David is a professionally qualified land surveyor and civil engineer, and is a fellow of the Institution of Professional Engineers. He spent over 30 years with the Auckland City Council and is currently Chair of the Transit New Zealand Board. David stepped down from the Board in April 2006.

The year in review by group

Policy and Planning Group

Simon Whiteley | General Manager

The Group is responsible for the development of operational policy, rule making and providing information that contributes to delivering safe and sustainable land transport. The Group also develops Land Transport NZ's Statement of Intent and other accountability documents and facilitates strategic planning for the organisation.

Highlights and achievements 2005/06

• Supported the development of Land Transport NZ's strategic plan.
• Published Participation in land use and transport planning processes, which sets out policy for participating in land use and transport planning processes.
• Led the transfer to Land Transport NZ of the national coordination of the travel behaviour change programme from the Energy Efficiency and Conservation Authority.
• Published Economic evaluation manual volume 2, which contains guidelines and procedures for the evaluation of public transport, transport demand management, walking and cycling activities.
• Secured agreement to Land Transport NZ developing and implementing major components of the Getting there - on foot, by cycle strategy.
• Completed the first stage of the review of passenger transport procurement procedures.
• Developed guidelines that will provide the basis for the review of procurement procedures for physical works and professional services.
• Completed phase one of the implementation programme to improve the Total Mobility scheme.
• Completed the first stage of integrating Land Transport NZ's Land Transport Programme into the National Land Transport Programme.
• Published Guidelines for developing and implementing a safety management system, which will assist road controlling authorities to develop and manage road networks.
• Completed work on Land Transport (Driver Licensing) Amendment Rule (No 2) 2006, which removes the mandatory on-road driving test that is currently needed to relicense at age 80 and two-yearly afterwards.
• Finalised the Heavy-vehicle Brakes Rule for submission to Cabinet.
• Signed into law were the Driver Licensing Amendment Rule 2006, the Driver Licensing Amendment (No 2) Rule 2006 and the amendments to 13 Rules (consulted on as the Omnibus Amendment Rule 2005).
• Worked with ONTRACK to evaluate the effectiveness of the Australian level crossing assessment model, using the system to survey pedestrian safety at level crossings.

Intentions for 2006/07

• Complete the integration of Land Transport NZ's land transport programme and the National Land Transport Programme.
• Complete and publish Economic Evaluation Manual Volume 1, which contains guidelines and procedures for the evaluation of land transport infrastructure projects.
• Work with the Ministry of Transport to finalise changes to financial assistance policy and to review regional development policy.
• Continue to develop and lead the introduction of travel behaviour change initiatives.
• Implement major components of the Getting there - on foot, by cycle strategy.
• Migrate the safer routes programme to 'neighbourhood accessibility plans' and incorporate sustainability initiatives into these.
• Implement the guidelines and procedures developed from the passenger transport procurement review.
• Advance the review of procurement procedures for physical works and professional services.
• Implement further improvements to the Total Mobility scheme.
• Work with the transport industry to review and replace the Manual of traffic signs and markings.
• Work with ONTRACK to use the Australian level crossing assessment model to assess levels of risk and prioritise corrective work at level crossings.
• Work with road controlling authorities to move their focus from safety management systems toward network management systems.
• Implement an objective noise test for motor vehicles, to provide a back-up to the subjective noise test currently used by entry inspectors and police at the roadside.
• Advance the Rules on vehicle standards, operator licensing, operator safety rating, work time and logbooks and traction engines, as well as the amendment to the Vehicle Dimensions and Mass Rule, and the amendment to the Dangerous Goods Rule.
• Work with the agricultural sector to improve understanding of requirements for farm and other specialised vehicles so that safety outcomes are improved.

Partnerships and Programmes Group

Richard Braae | General Manager

The Group is responsible for encouraging the development of land transport programmes that address safety and sustainability objectives. The Group develops Land Transport NZ's Land Transport Programme and is responsible for developing and managing the National Land Transport Programme.

Highlights and achievements 2005/06

• Developed the 2006/07 National Land Transport Programme and 10-year forecast (the programmed expenditure of $27 billion over 10 years).
• Completed the annual performance monitoring schedule, comprising 40 procedural and technical audits.
• Managed the 2005/06 National Land Transport Programme, funding more than 250 projects and activities.
• Developed At A Glance performance reports of the land transport system for local authorities.
• Re-oriented national and regional team structures to better support Land Transport NZ's business model.
• Produced four new television commercials with supporting advertising.
• Worked and consulted with four communities to produce a drink-driving campaign targeting Maori youth. The campaign relies on the communities taking ownership of a road safety issue, coming up with ideas to reach the audience and ultimately delivering the message into their region.
• Consulted with key regional and Pacific Island people in the Auckland region with the objective of putting in place a community-driven road safety campaign that Pacific Islanders can own and deliver.
• Successfully tendered for the national road safety advertising campaign and the Pacific Island campaign advertising contracts.
• Delivered a range of communications products to support the organisation in meeting its objectives.
• Developed a relationship management framework to guide key stakeholder relationships.
• Reviewed and restructured the Education team, filling four vacant positions.
• Contributed to the development of the Road safety education and School road safety education strategic documents.
• Completed a review of RoadSense - Ata Haere, the road safety programme offered to primary and intermediate schools.
• Organised the Land Transport Symposium, which was held in Christchurch in September.
• Worked with the Auckland Regional Transport Authority to establish and manage its land transport programme.
• Worked with local authorities to ensure they have appropriate safety management systems and asset management plans that specify good design, management and maintenance practices to achieve safety and value for money.
• Worked closely with the NZ Police and road controlling authorities to ensure that regular road safety action planning and network coordination projects are undertaken.
• The northern Partnerships team has carried out surveys of road controlling authorities' implementation of speed threshold treatments and drafted a national report for the sector.
• Regional office staff reviewed numerous long-term council community plans and made submissions on many of these.
• Managed the pilot project for moving the Community Road Safety Programme into the National Land Transport Programme, working with Christchurch City Council and Hurunui District Council.
• Participated in the Waikato Joint Officials Group process, which led to an appropriation by the government of additional funding for Waikato transport projects.

Intentions for 2006/07

• Manage the 2006/07 National Land Transport Programme and the development of the 2007/08 National Land Transport Programme.
• Develop the 2007/08 and 2008/09 National Land Transport Programme guidelines and revise the Programme and funding manual, and create a training component for 2008/09 guidelines.
• Continue to develop LTP online as a one-stop site for partner and Land Transport NZ interaction about land transport programmes.
• Develop a 10-year funding plan with NZ Police.
• Develop internal guidelines for reviewing land use documents and other planning documents with transportation implications, and for reviewing asset management components of land transport programmes of approved organisations.
• Review all asset management plans to ensure good processes and systems are in place for managing infrastructure assets.
• Devolve management of community focused land transport activities to approved organisations.
• Identify appropriate indicators that reflect on progress towards sustainable and safe land transport.
• Provide approved organisations with At A Glance reports into the performance of the land transport system.
• Undertake the annual stakeholder survey.
• Complete the reorganisation of the Education team.
• Develop a stakeholder engagement strategy to enable Regulatory Services, Policy and Planning and Partnerships and Programmes to communicate effectively with their stakeholders.
• Develop an education strategy that provides clear objectives and priorities in promoting transport safety and sustainability.
• Investigate further interventions into driver fatigue in conjunction with the ACC, NZ Police and the Ministry of Transport.

People and Culture Group

Carolina Gartner | General Manager

The Group is responsible for the development of business style and the implementation of people management and development strategies. These strategies enhance and increase organisational capability and organisational development and drive the integration of cross-organisational development.

Highlights and achievements 2005/06

• Assisted in filling over 100 positions, completing the restructure of the organisation.
• Updated key human resources policies, such as the human resources delegation policy, induction policy and recruitment policy.
• Developed and launched a Code of conduct, which guides the way employees work at Land Transport NZ.
• Developed and launched a new Code of conduct for Board members.
• Completed the Culture survey, which had a 76 percent response rate. The survey results will contribute to building a culture where employees are aligned to their purpose, skilled to meet customer needs and known for the quality of their operational performance.
• Organised and held 18 Shaping our future workshops and more than 50 Moving forward (parts one and two) workshops for Land Transport NZ employees in regional offices and at national office. The workshops helped define the organisation's strategic direction and how this shapes the way employees and teams work together.
• Merged the Training and Development team and the Payroll team from the Transport Registry Centre in Palmerston North into the People and Culture Group at National Office.
• Introduced a monthly induction course that welcomes people to Land Transport NZ and assists them in learning about the organisation. More than 50 employees participated to June 2006.
• Negotiated and agreed a new collective agreement with the Public Service Association.
• Established a new People and Culture team.

Intentions for 2006/07

• Work on areas identified in the Culture survey as needing improvement and undertake a new survey in early 2007.
• Reduce employee turnover rate.
• Develop a competency framework that identifies the key skills needed for each role in the organisation and assesses employees against these to provide personal development plans.
• Implement the leadership management development strategy.
• Design a potential leaders strategy, which will identify potential leaders and place them in a leadership development programme.
• Develop and implement a new remuneration system for employees.
• Develop and implement a workforce succession planning programme.
• Develop and implement a coaching and mentoring programme.

Regulatory Services Group

Ian Gordon | General Manager

The Group is responsible for implementing regulatory frameworks, registry management and revenue collection. In particular, this involves developing operational strategy, continually improving service delivery, managing agency relationships and contracts, monitoring and reviewing performance, managing entry to and exit from the land transport system and, where necessary, ensuring appropriate enforcement. The Group is also responsible for delivering on the contract with the Secretary for Transport for the motor vehicle registry and revenue management activities.

Highlights and achievements 2005/06

• Reviewed Land Transport NZ's service delivery strategy, confirmed that it is appropriate for the present operating environment, and recommended that a full evaluation of service delivery options be carried out before transport service delivery agent contracts are renewed in 2009.
• Land Transport NZ Board approval for the compliance strategy for licensed transport operators, which supports the new business direction for the commercial road transport unit.
• Advanced the development of the operator rating system, including defining user requirements for the computer systems, engaging consultants to develop an industry-based performance programme, initiating work on drafting the Operator Safety Rating Rule and developing a communications strategy.
• Introduced the new safety regime for rail operators as specified in the Railways Act 2005 and continued the safety monitoring and management of rail operators.
• Reported an increase in the inspection industry Performance Rating System outcome indicator from 2.44 to 2.53.
• Completed system design and implementation of objective noise testing programme.
• Worked with the Ministry of Transport to introduce a new relationship management protocol and service level agreement associated with the management of the motor vehicle registry and enhance the efficiency of all registers and databases.
• Increased customer service focus by centralising telephone and email services through the call centre and improved electronic access so that now nearly every customer transaction with Land Transport NZ can be made online.

Intentions for 2006/07

Further develop the operator rating system including:

• progressing the development of a trial rating system
• scoping a performance programme appropriate to the New Zealand road transport environment that will encourage licensed transport operators to improve their performance
• reviewing the Memorandum of Understanding with NZ Police to reflect training and implementation requirements
• completing the draft Operator Safety Rating Rule, consulting with the commercial transport industry and working with industry on issues arising from the consultation process.
• Implement a proactive compliance strategy that reinforces regulatory compliance and encourages the adoption of management practices that promote safer and more sustainable performance.
• Pursue the recommendation of the Transport Sector Review that the arrangements for the delivery of the motor vehicle register and registry management services be further explored.
• Enhance the certificate of fitness regime for heavy vehicles, including progression of a practical and cost effective implementation of the Heavy-vehicle Brakes Rule.
• Develop a competency framework for warrant of fitness inspectors that will define the process for ensuring inspectors remain competent throughout their career.
• Review transport services licensing fees and charges.
• Initiate a review of the Road User Charges Act, in conjunction with the Ministry of Transport, to address accessibility of operator records, processes for assessing evaded RUC and related enforcement issues.
• Develop intelligence capability for capturing and analysing data to enhance evidence-based decision-making and targeted enforcement.
• Conduct an assessment and evaluation of the service delivery options in anticipation of renewal of transport service delivery agent contracts in 2009.
• Complete the introduction of the requirements specified by the Railways Act 2005, including approving rail operators to continue to operate under the new regime.
• Continue to consolidate information on the motor vehicle register to reduce the amount of duplicate information currently stored on this database.
• Work on databases to bring postcodes and address standards in line with NZ Post changes.
• Minimise fraudulent activities on the driver licence register.
• Progress a joint project with Transit New Zealand to introduce a tolling system to collect revenue.

Corporate Services Group

Noel Lee | General Manager

The Group is responsible for providing excellence in service to internal customers in the areas of finance, information systems and technology, information management and business services.

Highlights and achievements 2005/06

• Began the rollout of the electronic documents and records management system, which manages and stores documents and records generated by staff across the organisation.
• Opened the new Midland Regional Office in Tauranga.
• Selected a site - Chews Lane in Wellington - and developed the lease agreement for the national office's new location.
• Re-tendered and renegotiated the Unisys outsourcing contract for information systems and technology services.
• Completed a restructure of the Corporate Services Group, which included the integration of information systems across the organisation.
• Developed new corporate policies for travel and purchasing.
• Began the development of a risk management framework to address policy and funding issues.

Intentions for 2006/07

• Complete the rollout of the electronic documents and records management system.
• Undertake further work in the regional offices to identify workspace requirements.
• Develop a data architecture that will integrate and centralise corporate data, which will enable greater use and sharing of this information.
• Redevelop the website and intranet.
• Develop a financial strategy for Land Transport NZ.

What we do

Land Transport NZ's statutory objective is to:

allocate resources and to undertake its functions in a way that contributes to an integrated, safe, responsive and sustainable land transport system.

In doing so, we must also exhibit a sense of social and environmental responsibility and operate in close partnership with key transport sector stakeholders.

Land Transport NZ has 16 statutory functions (see the appendix for details). These functions can be grouped into a number of broad categories:

• Providing registration, licensing and compliance services for our commercial and private customers.
• Assisting and funding our land transport sector partners.
• Monitoring and informing our partners and stakeholders.
• Promoting sustainable and safe land transport to customers, partners, stakeholders and communities.
• Assisting and advising government and collecting revenue.

The Land Transport Management Act 2003 charges Land Transport NZ with the twin responsibilities of promoting land transport sustainability and safe transport on land. In pursuing these responsibilities, we will:

encourage our partners to develop, maintain and operate land transport in a way that makes land transport more sustainable and more safe, and

encourage businesses and people to use land transport in a way that makes land transport more sustainable and more safe.

In carrying out our functions, we contribute to the five objectives of the New Zealand Transport Strategy:

• Assisting economic development.
• Assisting safety and personal security.
• Improving access and personal mobility.
• Protecting and promoting public health.
• Ensuring environmental sustainability.

Land Transport NZ also supports the New Zealand Transport Strategy by encouraging the governance, management and funding of the land transport system to be:

• forward looking
• collaborative
• accountable
• evidence-based.

The Crown's responsibility to take appropriate account of the principles of the Treaty of Waitangi is recognised in specific provisions in the Land Transport Management Act 2003 that govern our practices with respect to Maori.

Land Transport NZ's role in the transport sector

Land Transport NZ is a Crown entity governed by a Board appointed by the Minister of Transport.

Land Transport NZ provides a vital connection between transport policy-making and the operation of the transport sector. Close working relationships are maintained with the Ministry of Transport, which is responsible for leading the development of strategic transport policy; NZ Police, which enforces and promotes safety regulations; and with 'approved organisations' including Transit New Zealand, regional councils and territorial local authorities, which are responsible for implementing transport projects and other activities. We also have direct links to the public, who use and interact with land transport.

Figure 1 Land Transport NZ's role in the transport sector

Vision, mission and values

Vision

Land transport is a means to the economic, social and environmental well-being of New Zealand. Land Transport NZ's vision for land transport accordingly is:

Land transport that leads to a better New Zealand

Mission

The mission describes the business of Land Transport NZ. It needs to span activities focused on government policy, those integrated with other transport authorities and those that meet the needs of individual customers. It needs to extend from activities that meet straight-forward service demands to those directed at wider influencing roles.

The mission for Land Transport NZ drives us to add value to New Zealanders as we carry out our functions.

Land Transport NZ's mission is:

We improve land transport for all New Zealanders

Our functions

The functions of Land Transport NZ can be summarised, as shown in Figure 2, into a high level description of the way in which Land Transport NZ and its partners contribute to the land transport system. All activities are carried out in a way that promotes land transport sustainability and safety.

Within each of the four segments of the diagram, Land Transport NZ has a close involvement with the land transport system. This is either direct - through provision of services, communication and education activities and management of the land transport funding allocation process, or indirect - through funding assistance for maintenance and improvement of transport related infrastructure and services.

Figure 2 - How Land Transport NZ and partners contribute to land transport

Planning
In order to deliver its key outcomes, Land Transport NZ relies on its stakeholders to successfully plan and deliver their individual land transport activities. Success in this context requires alignment between local government long-term council community and annual plans, regional land transport strategies, and the purpose and objectives of the Land Transport Management Act 2003.

These local, regional and central government planning processes, informed by what is happening in the community, provide a major opportunity to integrate land use and transport planning for a sustainable and safe land transport system.

Over 2005/06, Land Transport NZ has worked to integrate the National Land Transport Programme (NLTP) and the Safety Administration Programme (SAP) to provide greater integration of safety and engineering initiatives. Over time, community safety programmes will broaden to include programmes designed to encourage long-term transport sustainability.

As well as publishing a yearly NLTP, Land Transport NZ also undertakes a forecast of its anticipated revenue and expenditure for the current financial year and the nine following years. Over 2005/06, this forecasting exercise has been impacted by projected revenues being less than anticipated, costs across the sector rising faster than anticipated, and a government decision in the 2006 Budget to increase spending through Crown appropriation to restore previously forecast available funds as well as accelerating the state highway building programme by guaranteeing funding availability for a selected list of high priority projects.

Operating
Land Transport NZ assists the operation of the land transport system by financially assisting transport operations and services, managing access to the system, regulation, and working with NZ Police to deliver effective road policing.

Land Transport NZ has a substantial service delivery role, including providing driver testing services, issuing driver and transport service licences, undertaking vehicle certification, registration and licensing activities, and collecting road user charges and other roading revenue.

Developing
Although Land Transport NZ has placed a new emphasis on better managing existing transport networks and encouraging different travel choices as key ways to reduce pressure on the transport system, adding new infrastructure and improving passenger transport services continues to be necessary and this is being achieved within a new long-term planning context.

Land Transport NZ's funding allocation process is central to government investment in the land transport system. Project proposals take into account the size and nature of the transport problem, the effectiveness of the proposed solution, the efficiency of the proposed solution and other factors specific to individual situations.

Maintaining
Over half of the National Land Transport Fund is used to maintain or operate the existing land transport system.

Land Transport NZ continues to work on improving its approach to road maintenance through promotion of robust decision-making processes based on accurate inventory data management, regular condition monitoring and sound asset management planning.

Achieving operational excellence

Every person at Land Transport NZ has a leadership role to play in the organisation. Over the last year, the challenge has been to create an organisational culture that encourages productivity, creativity and loyalty. Our operational excellence goals are directed at enabling our staff to carry out their duties to the best of their ability and to the level of performance required.

At Land Transport NZ, we are building an organisation that exhibits:

• commitment, leadership and integrity
• teamwork and partnership
• a professional approach
• being knowledgeable and informative
• staff competence and empowerment
• quality service and adding value
• effectiveness and efficiency.

In order to achieve these goals, we need to focus on developing our skills and providing a supportive environment where staff feel valued and are motivated to achieve. This requires Land Transport NZ managers to provide the right kind of leadership, including recognising and rewarding excellent performance.

Leadership development

A large and diverse business like that operated by Land Transport NZ requires good leadership at management level, but also promotion and development of leadership qualities throughout the organisation. Leadership should be witnessed at all levels and should support people in their roles so that they can achieve what is expected of them.

Land Transport NZ has developed a set of priority leadership protocols that will be promulgated throughout the organisation. Managers will be held to account for demonstrating these in the day-to-day management of people and resources.

Equal employment opportunities

Land Transport NZ is currently in the process of developing its equal employment opportunities (EEO) policy. Three sub-projects are being developed under the EEO umbrella:

• Work-life balance strategy and guideline.
• Cultural relationship capability strategy and guideline.
• EEO policy strategy and guideline.

Induction

Land Transport NZ has introduced a monthly induction programme that welcomes employees to their new positions in the organisation. Induction provides a critical opportunity to communicate Land Transport NZ's values and to help familiarise employees with their new roles, and to help them learn their role and become part of the team as quickly and smoothly as possible. A positive induction experience can influence how well employees settle into their roles and how long they stay.

Corporate learning and development

The leadership team has approved a process for managers to submit bids for learning and development training, which will benefit Land Transport NZ as an organisation. A centralised learning and development fund was established primarily to provide for organisation-wide learning and development opportunities. A committee with representatives from each business group meets regularly to decide on funding allocation, using the criteria agreed by the Leadership Team to ensure transparency.

Health and safety within Land Transport NZ

Land Transport NZ is committed to:

• improving health and safety practices within our organisation and implementing the health and safety management system in accordance with NZS4801 (Int): 1999 Occupation health and safety management systems
• complying with all health and safety legislation, regulations, codes of practice and safe operating procedures that impact upon our operation
• promoting safe and healthy workplace procedures and environments for all staff, contractors and visitors
• ensuring that all employees are consulted with and responded to on issues relating to health and safety management
• requiring from employees a commitment to personal safety and health practices at all times
• ensuring that all contractors we employ have adequate health and safety systems, are aware of the hazards they might encounter and that they adequately advise us of and control any hazards associated with their activities
• following best practice in the management of safety, health and rehabilitation in the workplace, so that:
  • all employees and contractors are assigned health and safety responsibilities and held accountable for these actions
  • health and safety objectives are reviewed annually
  • resources are provided to ensure continual improvement within the organisation
  • all managers are required to show competence in health and safety management through adherence to the health and safety management system, and are trained in health and safety best practice
  • reporting and recording is accurate
• ensuring that our health and safety policy is reviewed every two years through the Corporate Health and Safety Committee and in consultation with local committees and employee representatives.

Land Transport New Zealand statement of responsibility

The Chair, Chief Executive, Board and management of Land Transport NZ acknowledge responsibility for the preparation of the financial statements and the judgements used therein, and for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of financial and non-financial reporting.

The financial statements have been prepared in accordance with generally accepted accounting practice.

In the opinion of the Chair, Chief Executive, Board and management of Land Transport NZ, the financial statements fairly reflect the financial position and operations of Land Transport NZ for the year to 30 June 2006.

Dr Jan Wright
Chair
19 October 2006

Wayne Donnelly
Chief Executive
19 October 2006

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