Land Transport New Zealand Annual Report

for the year ending 30 June 2006

Statement of service performance

Land Transport NZ's output classes fall into two distinct categories:

• Those delivered directly by Land Transport NZ (or contracted agents).
• Those delivered by approved organisations (with Land Transport NZ funding support).

The performance measures contained in this report have been assembled from those for the two pre-existing organisations, Transfund NZ and the Land Transport Safety Authority, with some revision. Land Transport NZ has been working with the Ministry of Transport over 2005/06 to further review and refine the set of performance measures.

Where necessary, comparative figures with the previous year have been adjusted to correspond to changes in output classes, and presentation and classifications adopted in the financial statements during this current year.

A large number of measures this year are new, as a result of the introduction of new output classes as agreed with Treasury.

Output class | Research and performance monitoring

Description

This output class is delivered directly by Land Transport NZ (or contracted agents) and involves:

• organising and publishing research
• coordinating and reporting performance monitoring of the land transport system.

Output objectives

Improved formulation and delivery of strategies and programmes through effective and efficient:

• organisation and publication of research
• monitoring of land transport inputs, outputs, impacts and consequences.

Key performance measures

Performance measure	Actual 7 months	Estimate	Actual
Quantity	2004/05	2005/06	2005/06
Publication of research findings in Land Transport Research (previously Transearch)	1 issue	4 issues	4
Publication of performance information	New	1 issue	1
Percentage funding allocation (by theme):	New
Asset management		30-40%	37%
Natural hazard risk management		1-5%	2%
Safety and personal security		5-15%	16%
Environmental effects		15-20%	17%
Travel behaviour change		10-25%	14%
Traffic management		5-15%	5%
Sustainable land transport		10-25%	9%
Performance measure	Actual 7 months	Target	Actual
Quality	2004/05	2005/06	2005/06
% of approved organisations and relevant transport industry representatives that agree that Land Transport NZ's research programme adds value to the land transport industry	New	≥80%	81%
% of research projects completed on time	70%	≥75%	49%1
% of approved organisations and relevant transport industry representatives that agree that performance monitoring adds value to the land transport industry	New	≥80%	72%
% of approved organisations and land transport industry representatives that agree that Land Transport NZ's industry training adds value to the land transport industry	81%	≥80%	72%

Notes
¹ A number of research projects had a target completion date of 30 June. Researchers have sought time extensions during the course of undertaking the research. These extensions have been approved with the resulting outcome in the performance measure that measures against the original completion date.

	Actual	Budget	Actual
	7 months	12 months	12 months
	2004/05	2005/06	2005/06
Research and performance monitoring	$000	$000	$000
NLTP funding from NLTF	2,707	4,953	4,953
Total revenue	2,707	4,953	4,953
Expenditure	2,707	4,953	5,563
Output class net surplus (deficit)	0	0	(610)

Output class | Promotion, information and education activities

Description
Under this output class, Land Transport NZ (or contracted agents) delivers transport safety information and promotion under the following outputs:

• Land transport sustainability.
• Safe land transport.
• Information and advice to government and stakeholders on issues relating to Land Transport NZ functions.
• Road Safety Trust.

Output objectives
Progress towards a safer, more sustainable land transport system through effective and efficient:

• promotion of land transport sustainability
• promotion of safe land transport
• provision of information and advice.

Performance measure	Actual 7 months	Estimate	Actual
Quantity	2004/05	2005/06	2005/06
Number of contracts for delivery of the Community Road Safety Programme (CRSP)	37	150-180	181
Number of schools participating in the Road Safety Education Programme	1,115	1,000	1,257
Number of issues of Land Transport News	6	11	11
Number of road codes reviewed and updated	3	3	3
Number of manuals and standards issued	5	4	9
Road safety data and issues reports	0	74	74
General land transport publications	66	40	44
National Community Road Safety Conference or Symposium	NA	1	1
Number of Australasian New Car Assessment Programme (ANCAP) advertising initiatives completed	1	1	1
Number of road safety advertising campaigns for Maori and Pacific peoples	2	2	2
Road Safety advertising package
> number of themed flights (flights)	11.5	18	22
> average number of targeted audience rating points (TARPs) purchased1	757	666	895
% of media spend on television	64%	65%-75%	67%

Notes
¹ This a monthly target. The monthly average was higher than the Statement of Intent target of 666 per month. The purchasing arrangements for 2005/06 enabled significantly more TARPS to be achieved within the available budget.

Performance measure	Actual 7 months	Target	Actual
Quality	2004/05	2005/06	2005/06
% of Community Road Safety Programme providers who rate Land Transport NZ assistance and advice as very good or better based on independent surveys against agreed criteria	82%	≥75%	73%
% of survey respondents who rate publications as useful or better	81%	≥75%	80%
Total unprompted recall by the target audience of road safety television commercials, tested quarterly and averaged over 12 months	73%	≥70%	77%
Relevance of road safety television commercials to the target audience, tested quarterly and averaged over 12 months	56%	≥60%	63%

	Actual	Budget	Actual
	7 months	12 months	12 months
	2004/05	2005/06	2005/06
Promotion, information and education activities	$000	$000	$000
Safety administration programme (SAP)	13,506	28,675	28,675
Third party revenue	2,546	2,871	4,011
Total revenue	16,052	31,546	32,686
Expenditure	21,846	31,601	32,976
Output class net surplus (deficit)	(5,794)	(55)	(290)

Output class | Regulatory implementation and enforcement

Description
This output class is directly delivered by Land Transport NZ (or contracted agents) to:

• develop rules
• provide regulatory services including enforcement in relation to vehicle certification, vehicle inspection and certifying organisations, driver licence administration, driver testing, driver licence course provision, border check processes, licensed transport service operations and transport operator vehicle fleet audits.

Output objectives
Progress towards a safer, more sustainable land transport system with reduced adverse impacts on the environment and public health, through effective and efficient:

• rules development
• delivery of regulatory services and enforcement.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
Number of rules signed	New	5	15 (2 + 13 from Omnibus Rule)1
Number of rules underway	New	0	4
Number of rules to be started	New	7	3
Reviews of vehicle inspectors and inspecting organisations	1,622	1,800-2,200	2,307
Audits of driver licence administration	New	30	30
Audits of driver testing officers	21	30	25
Audits of driver licence course providers	113	140-160	154
Audits of licensed transport service operations	77	100-120	112
Audits of transport operator vehicle fleets	30	40-50	75
Random roadside audits of transport service vehicles	50	20-40	24
Reports on audits of border check agencies	4	4	4
Complaints investigated	246	200	310
Joint crash investigations	19	15-21	23
Road controlling authorities surveyed on 1-2 topics	30	30	32
Monitoring of rail operator's annual audits	53	65-85	76
Special focus rail audits	1	0-4	1
Number of Transport Accident Investigation Commission rail safety recommendations	New	0-2	0
% Transport Accident Investigation Commission recommendations actioned and reported	New	100%	100%
New safety management systems adopted by road controlling authorities	16	5	5
Safety management system implementation trials undertaken	13	20	10
Draft responses to ministerial correspondence	182	300-400	345
Draft responses to parliamentary questions	49	90-120	67
Direct responses to ministerial correspondence	20	200-400	82

Notes

¹ The draft Omnibus Rule was separated into 13 Amendment Rules (this had been counted as one in the target estimates).

² Far fewer requests requiring direct responses to ministerial correspondence were received in 2005/06 than was estimated in the Statement of Intent targets.

Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
% of safety-critical non-compliances rectified to the satisfaction of the Chief Executive within 30 days	New	100%	95%
% of driver tests that comply with the Land Transport NZ Driver testing officers manual (as determined by audit)	99%	95%	100%
% draft responses to Ministerial correspondence and parliamentary questions accepted by the Minister	98%	≥95%	96%
% Ministerial correspondence responded to within 12 working days	100%	100%	71%
% parliamentary questions delivered within agreed timeframes	100%	100%	100%

Regulatory implementation and enforcement	Actual 7 months 2004/05 $000	Budget 12 months 2005/06 $000	Actual 12 months 2005/06 $000
Crown	320	548	548
Safety administration programme (SAP)	995	1,335	1,335
Contract services	591	1,013	1,013
Third party revenue	10,477	15,503	19,476
Total revenue	12,383	18,399	22,372
Expenditure	13,757	19,636	20,439
Output class net surplus (deficit)	(1,374)	(1,237)	1,933

Output class | Licensing activities

Description
This output class is delivered directly by Land Transport NZ (using Crown and third party funding) to:

• provide driver licensing and testing services for the land transport sector
• pay fees to storage providers for unclaimed vehicles impounded by the NZ Police
• pay drug and alcohol assessment fees.

Output objectives
Progress towards a safer, more secure land transport system through effective and efficient delivery of licensing activities.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
Driver licences issued (new, renewals, endorsements, overseas conversions and conversions/upgrades)	395,305	700,000	565,000
Transport services licences issued	2,016	2,500-3,500	3,721
Overdimension permits issued	4,219	7,500-8,000	7,277
Theory, practical and older driver tests	219,931	410,000	375,000
Number of vehicle impoundment payments	1,480	4,800-5,000	2,735
Number of drug and alcohol assessments	514	1,400	967

Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
Appeals on points of law or procedural matters sustained regarding the Chief Executive's decisions	Nil	Nil	Nil
% of licences issued within specified timeframes	100%	100%	100%
% of ordinary and special over dimension permits issued within specified timeframes	100%	≥98%	100%
% of driver tests delivered within timeliness guidelines	95%	≥95%	96.9%

Licensing activities	Actual 7 months 2004/05 $000	Budget 12 months 2005/06 $000	Actual 12 months 2005/06 $000
Crown	965	1,655	1,655
Safety administration programme (SAP)	393	444	444
Third party revenue	25,317	45,910	42,771
Total revenue	26,675	48,009	44,870
Expenditure	26,156	47,939	43,268
Output class net surplus (deficit)	519	70	1,602

Output class | Management of the funding allocation system

Description
This output class is delivered directly by Land Transport NZ (or contracted agents) to:

• manage the National Land Transport Account, including the development and administration of:
  • the National Land Transport Programme (NLTP) funded from the National Land Transport Fund
  • procurement procedures, policies and guidelines
  • performance agreements with approved organisations, as service providers, to record the arrangements between the parties for the implementation of the NLTP
• audit approved organisations in relation to activities approved by Land Transport NZ, and the operation of the organisation's land transport disbursement account
• assist and advise approved organisations with their contribution towards an affordable, integrated, safe, responsive and sustainable land transport system.

Output objectives
Progress towards a safer, more integrated, responsive and sustainable land transport system through effective and efficient management of the funding allocation system.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
Number of approved organisations audited	New	29	40
Number of activities subject to post-implementation audits	New	9	12
Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
Generally applied funding priority threshold (seriousness and urgency of the problem, effectiveness of the solution, efficiency of the solution)	New	Medium Medium High	Medium High
% of all activities that delivered the forecast benefits (as determined by post-implementation reviews/audits)	New	100%	83%1
% of all activities delivered at forecast cost (as determined by post-implementation reviews/audits)	New	100%	75%2
% of relevant stakeholders who rate the way in which Land Transport NZ assists and advises stakeholders to formulate proposed activities and procurement procedures as 'very good' or better based on independent surveys against agreed criteria	New	>75%	59%3
% of relevant stakeholders who rate the way in which Land Transport NZ processes and administers funding applications and procurement procedures as 'very good' or better based on independent surveys against agreed criteria	New	>75%	60%3
% of relevant stakeholders who rate the way in which Land Transport NZ undertakes its auditing activities as 'very good' or better based on independent surveys against agreed criteria	New	>75%	78%3

Notes
¹ Two out of 12 projects had high negative safety benefits from turning movements at intersections.
² Three projects out of 12 cost more than the forecast cost. Two projects were well under.
³ The Statement of Intent targets were set with the understanding that 'very good' was the second to best rating. However, in the survey 'very good' was the top rating. To keep the scores for these measures relevant and meaningful, they have been reported against 'good or better'.

Performance measure continued	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality continued
% of issues raised in audits of approved organisations that are resolved within agreed time-frames	100%	100%	66%4
Publication of the NLTP for the following financial year no later than 30 June	Yes	Yes	Yes
% of agreements with approved organisations that are in place by 31 July	New	100%	72%
Efficiency of new works in the NLTP as measured by benefit/cost ratio (average for applicable approved activities)	New	>2	3.6
Land Transport NZ costs for management of the funding allocation system as a % of the total cost of the National Land Transport Programme	New	<1%	0.8%

Management of the funding allocation system	Actual 7 months 2004/05 $000	Budget 12 months 2005/06 $000	Actual 12 months 2005/06 $000
NLTP funding from NLTF	5,198	13,287	13,287
Total revenue	5,198	13,287	13,287
Expenditure	5,198	13,287	12,078
Output class net surplus (deficit)	0	0	1,209

Notes
⁴ Recommendations not taken up relate to the Road Assessment Maintenance and Management system (RAMM) and technical reviews which can take longer than 12 months to resolve.

Output class | Motor vehicle registry and revenue management

Description
Under this output class, Land Transport NZ is contracted to provide the following services under an agreement with the Secretary for Transport:

• Provide an administrative and accounting service for the collection and refund of motor vehicle registration and licensing fees and ACC levies; road user distance/weight and time licences; and fuel excise duty credited to the National Land Transport Fund.

Output objectives
Improved planning, maintenance, management and development of the land transport system through effective and efficient management of the motor vehicle registry and revenue collection.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
Collection and refund of revenue > Motor vehicle new registration > Motor vehicle licences > Motor vehicle change of ownership > Other licensing transactions > Road user charge licences > Road user charge refunds > Fuel excise duty refunds	190,112 2,950,297 573,171 396,172 1,170,841 172,999 11,752	340,000 5,300,000 1,050,000 870,000 2,000,000 290,000 14,000	327,000 5,080,000 1,002,000 1,290,000 1,962,000 310,000 25,000
Motor vehicle information > Number of motor vehicle information requests	4.4m	10.0m	10.9m
Evasion detection and enforcement > Number of road user charge investigations > Number of road user charge audits > Number of road user charge surveys > Number of light vehicle audits	76 1,523 26 8,713	90-110 3,000-4,500 60-80 10,000-12,000	109 2,806 82 15,161

Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
Collection and refund of revenue
> Unplanned outage of LANDATA1 computer system	0.36hrs	<48hrs	3.5hrs
> Accuracy of LANDATA computer system records (by random sample)	98%	≥95%	97.9%
> % of motor vehicle registry and road user charge licence customers who rate the services provided as 'good' or better based on independent survey	97%	≥90%	96%
> Road user charge and motor vehicle registry total costs per transaction	$5.86	$6.11	$5.83
Motor vehicle information
> % of users who rank motor vehicle registry supplied data as meeting their expectations, based on independent survey	83%	≥90%	86%
Evasion detection and enforcement
> Amount of identified and proven road user charge revenue evasion	$7.3m	$8-10m	$12.78m
> Amount of revenue recovered from road user charge evasion	New	0	NA2
> Amount of revenue from road user charge and motor vehicle registry evasion written off as bad debt	New	0	NA2

Motor vehicle registry and revenue management	Actual 7 months 2004/05 $000	Budget 12 months 2005/06 $000	Actual 12 months 2005/06 $000
Contract services	23,677	48,886	45,886
Third party revenue	6,866	12,267	12,135
Total revenue	30,543	61,153	58,021
Expenditure	32,323	60,852	56,535
Output class net surplus (deficit)	(1,780)	301	1,486

Notes
¹ LANDATA is the register for motor vehicles, road user charges and the vehicle inspection system.
² New measures put in place for 2005/06 but the process was not put in place to measure the performance of set targets. The process has been put in place for 2006/07 year.

Output class | Rail and sea freight

Description
Under this output class, Land Transport NZ co-funds, with approved organisations, initiatives that encourage the movement of freight by rail and coastal shipping (including barging) instead of by road.

Output objectives
Progress towards a safer, more integrated and sustainable land transport system though effective and efficient use of alternatives to road freight.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
Freight diverted from road to rail (million tonne-km)	New	22.0	Nil1
Freight diverted from road to coastal shipping (million tonne-km)	New	8.4	5.6
Number of currently funded activities	New	5	6

Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
% of allocated funds actually spent	New	100%	18%2
Forecast efficiency ratio (average for approved new activities)	New	>1	Nil
% of activities that delivered the forecast benefits (as determined by post-implementation reviews/audits)	New	100%	NA3
Total cost ($000)	New	2,065	371

Notes
¹ No new funding applications were received.
² Regions are still developing their priorities for funding, hence there have been very few projects developed sufficiently to enable funding applications to be made.
³ No activities reviewed this year.

Output class | Transport demand management, walking and cycling

Description
Under this output class, Land Transport NZ co-funds, with approved organisations:

• initiatives to improve the management and use of land transport networks
• travel behaviour change initiatives
• new and improved walking and cycling infrastructure.

Output objectives
Progress towards a safer, more integrated, responsive and sustainable land transport system through effective and efficient activities that:

• improve the management and use of land transport networks
• reduce dependence on private motor vehicles
• develop new and improved walking and cycling infrastructure.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
Number of school travel plans funded	New	100	551
Number of workplace travel plans funded	New	40	411
Length of walkway/cycleway funded (km)	New	100	36.71

Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
% of allocated funds actually spent	New	100%	47%2
Forecast benefit/cost ratio (average for approved new activities)	New	>1	2.1
% of activities that delivered the forecast benefits (as determined by post-implementation reviews/audits)	New	100%	NA3
Total cost ($000)	New	17,607	8,216

Notes
¹ The target was new for 2005/06 and was set in the absence of historical information and detailed information from approved organisations on their funding applications.
² Regions are still developing their priorities for funding, hence few projects have been sufficiently developed to enable funding applications to be made.
³ No activities reviewed this year.

Output class | Passenger transport

Description
Under this output class, Land Transport NZ co-funds non-commercial road, rail and ferry infrastructure and services delivered by approved organisations.

Output objectives
Progress towards a safer, more integrated, responsive and sustainable land transport system through effective and efficient activities that increase access to and use of passenger transport services.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
Total boardings on buses (million)	No return	92.0	89.91
Total boardings on ferries (million)	No return	4.0	4.2
Total boardings on rail (million)	No return	15.0	16.32
Total mobility boardings (million)	No return	1.9	1.9
Total passenger-km on buses (million)	New	650.0	620.5
Total passenger-km on ferries (million)	New	39.0	47.7
Total passenger-km on rail (million)	New	330.0	352.0
Length of dedicated bus-lane funded (km)	New	4.0	16.03
Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
User satisfaction, as measured by the % of users who rate passenger transport services as 'good' or better by an annual independent survey	No return	≥75%	88%2
User satisfaction, as measured by the % of users who rate total mobility services as 'good' or better by an annual independent survey	No return	≥75%	90%
Land Transport NZ subsidy per passenger boarding on buses	New	$0.90	$1.05
Land Transport NZ subsidy per passenger boarding on ferries	New	$0.39	$1.554
Land Transport NZ subsidy per passenger boarding on rail	New	$2.73	$2.02
Land Transport NZ subsidy per passenger-km	No return	$0.12	$0.135
% of total costs recovered by fares on non-commercial services	No return		45.7%6
Forecast benefit / cost ratio (average for approved new activities)	New	>1	1.4
% of activities that delivered the forecast benefits (as determined by post-implementation reviews/audits)	New	100%	NA7
Total cost ($000)	65,069	181,581	211,789

Notes
¹ Boardings were 5% higher (4.2 million) than 2004/05. Bus patronage was lower than target, primarily due to lower growth rates than originally predicted.

² Actual rail patronage was 14.7% higher than 2004/05 and higher than target due to growth in passenger rail in Auckland.

³ Predominantly Northern busway.

⁴ New performance measure, the initial target took account of commercial as well as contracted passenger boardings. A revision will be required for 2006/07.

⁵ The higher subsidy per total passenger kilometre is primarily due to cost escalation of service provision outweighing the increase in overall passenger kilometres.

⁶ The lower farebox recovery reflects a greater contribution of the additional costs being met by subsidy payments. Regional fare increases in 2006/07 should go some way to keep this from dropping further.

⁷ No activities reviewed this year.

Output class | Regional land transport

Description
Under this output class, Land Transport NZ funds regional priority land transport activities and the improvement of roads for the regional development of Northland and Tairawhiti. These outputs are delivered by approved organisations (with Land Transport NZ funding support).

Regionally distributed land transport funds

Output objectives
Progress towards a safer, more integrated, responsive and sustainable land transport system in each region by contributing effectively and efficiently towards:

• promotion, information and education
• new and improved land transport infrastructure and services
• transport demand management.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
% of funds allocated to output classes:	New
> Transport demand management, walking and cycling		10%	4%
> Passenger transport services		26%	40%
> New and improved state highways		48%	Nil1
> New and improved local roads		16%	56%
Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
% of allocated funds actually spent	New	100%	9%2
Note: Specifics of performance reported within other output classes
Total cost ($000)	17,529	65,563	6,104

Notes
¹ No funding requests received for state highways.
² Most regions are still developing their priorities for funding, hence very few projects were sufficiently developed to enable funding applications to be made.

Regional development - Northland and Tairawhiti

Output objectives
Progress towards a more responsive land transport system by assisting regional economic development through effective and efficient improvements to land transport infrastructure.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
% of funds allocated to:	New
> new and improved state highways		0%	Nil
> new and improved local roads		100%	100%
Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
% of allocated funds actually spent ($15m allocated)	New	100%	101%2
Note: Specifics of performance reported within other output classes

Output class | Auckland land transport

Description
Under this output class, the Minister of Transport purchases activities that support the increased integration of transport and land use in the Auckland region, using Crown funding. This output is delivered by approved organisations (with Land Transport NZ funding support).

Output objectives
Progress towards a safer, more integrated, responsive and sustainable land transport system in Auckland, through effective and efficient activities, with priority given to:

• improvements to passenger transport services and infrastructure
• transport demand management
• improvements to strategic roading.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
% of funds allocated to output classes:	New
> Passenger transport services		100%	100%
Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
% of allocated funds actually spent	New	100%	8%1
Note: Specifics of performance reported within other output classes
Total cost ($000)	New	64,000	4,947

Notes
¹ The Auckland region is still developing their priorities for funding. Therefore, very few projects have been sufficiently developed to enable funding applications to be made.

Output class | Wellington land transport

Description
Under this output class, the Minister of Transport purchases activities that retain passenger transport mode share, address congestion and improve access to the Wellington region, using Crown funding. This output class is delivered by approved organisations (with Land Transport NZ funding support).

Output objectives
Progress towards a safer, more integrated, responsive and sustainable land transport system in Wellington, though effective and efficient activities, with priority given to:

• enhancing passenger transport services and infrastructure and retaining passenger transport mode share
• transport demand management
• walking and cycling
• strategic roading.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
% of funds allocated to output classes:	New
> Transport demand management, walking and cycling		13	100%1
> Passenger transport services		42	Nil
> New and improved state highways		30	Nil
> New and improved local roads		15	Nil
Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
% of allocated funds actually spent	New	100%	7%2
Note: Specifics of performance reported within other output classes
Total cost ($000)	New	1,250	93

Notes
¹ No funding applications were received for passenger transport services, new and improved state highways or new and improved local roads. 100% of funds allocated were to transport demand management, walking and cycling.
² The Wellington region is still developing their priorities for funding, hence there have been very few projects sufficiently developed to enable funding applications to be made.

Output class | New and improved infrastructure for state highways

Description
Under this capital appropriation Land Transport NZ purchases state highway capital improvements. This output class is delivered by approved organisations (with Land Transport NZ funding support).

Output objectives
Progress towards a safer, more integrated, responsive and sustainable land transport system through effective and efficient development of new and improved road infrastructure.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
New roads (lane-km)	New	6	3.61
New bridges (lane-m)	New	20	N/A2
Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
Cost of new urban roads ($/m2 of new road)	New		$2800/m2 to $4000/m2
Cost of new rural roads ($/m2 of new road)	New		$200/m2 to $500m2
Forecast benefit/cost ratio (average for approved new activities)	New	≥4	4.0
% of activities that delivered the forecast benefits (as determined by post-implementation reviews/audits)	New	100%	67%3
Total cost ($000)		679,559	714,470
Less cost funded by Transit New Zealand property sales		(15,000)	(12,423)
Total cost funded by NLTP ($000)	293,819	664,559	702,047

Notes
¹ Includes new infrastructure for roads.
² New bridges are no longer separately accounted for. They are now included in new roads.
³ Four out of six projects reviewed delivered the forecast benefits.

Output class | Maintenance of state highways

Description
Under this output class, Land Transport NZ purchases the routine and periodic maintenance of state highways.

Output objectives
Progress towards a safer, more sustainable land transport system through effective and efficient preservation of roading infrastructure.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
Minor safety activities ($000)	New	26,133	21,298
Road reconstruction (lane-km)	New	40	82
Pavement smoothing (lane-km)	New	60	7
Area wide pavement treatment (lane-km)	New	360	170
Reseals (lane-km)	New	2,600	1,185
Bridge reconstruction (lane-m)	New	1,000	2,900
% of roads undergoing periodic maintenance	New		13%
Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
Ride quality (smooth travel exposure, STE)	New	Steady	Steady
Road condition index (CI)	New		Improving1
Road pavement integrity index (PII)	New		Improving1
Cost of routine maintenance per network-km	New		$19.4
Cost of periodic maintenance per network-km	New		$13.6
Total cost		186,570	227,166
Less cost funded by Transit New Zealand property sales		(12,100)	(18,131)
Total cost funded by NLTP ($000)	243,155	174,470	209,035

Notes
¹ Reflects trend over last five years.

Output class | New and improved infrastructure for local roads

Description
Under this output class, Land Transport NZ co-funds, with approved organisations, local roads capital improvements.

Output objectives
Progress towards a safer, more integrated, responsive and sustainable land transport system through effective and efficient development of new and improved road infrastructure.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
New roads (lane-km)	New	8	1441
Seal extensions (lane-km) New 280 209	New	280	209
New bridges (lane-m)	New	40	4131
Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
Cost of new urban roads ($/m2 of new road)	New		$40 to $265
Cost of new rural roads ($/m2 of new road)	New		$20 to $175
Forecast benefit / cost ratio (average for approved new activities)	New	≥4	4.2
% of activities that delivered the forecast benefits (as determined by post-implementation reviews/audits)	New	100%	100%
Total cost ($000)	84,503	312,410	281,012

Notes
¹ Target erroneously based on recent past achievement instead of projects submitted for 2005/06. Actual based on information provided through the Annual Achievement Returns collected from approved organisations.

Output class | Maintenance of local roads

Description
Under this output class, Land Transport NZ co-funds, with approved organisations, the routine and periodic maintenance of local roads infrastructure.

Output objectives
Progress towards a safer, more sustainable land transport system through effective and efficient preservation of roading infrastructure.

Performance measure	Actual 7 months 2004/05	Estimate 2005/06	Actual 2005/06
Quantity
Minor safety activities ($000)	New	26,708	25,814
Road reconstruction (lane-km)	New	360	282
Pavement smoothing (lane-km)	New	200	282
Area wide pavement treatment (lane-km)	New	900	704
Reseals (lane-km)	New	7,600	5,447
Bridge reconstruction (lane-m)	New	1,400	492
% of roads undergoing periodic maintenance	New	9%	8%
Performance measure	Actual 7 months 2004/05	Target 2005/06	Actual 2005/06
Quality
Ride quality (smooth travel exposure, STE)	New	Steady	Steady
Road condition index (CI)	New	Improving	Improving1
Road pavement integrity index (PII)	New	Steady	Improving1
Cost of routine maintenance per network-km	New		$2.6
Cost of periodic maintenance per network-km New $1.8	New		$1.8
Total cost ($000)	239,335	167,715	225,401

	Actual 7 months 2004/05	Budget 12 months 2005/06	Actual 12 months 2005/06
National Land Transport Programme	$000	$000	$000
Crown	48,301	60,498	61,054
NLTP funding from NLTF	783,739	1,462,827	1,462,114
Third party revenue	7,446	2,000	14,222
Total revenue	839,486	1,525,325	1,537,390
Expenditure	956,055	1,651,220	1,649,015
Output class net surplus (deficit)	(116,569)	(125,895)	(111,625)

Notes
¹ Reflects trend over the last five years.

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Page created: 13 February 2007