Land Transport New Zealand

Annual Report

for the year ending 30 June 2007

This document is also available in PDF (2.81 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
• Who we are
• What we do
• Achieving operational excellence
• The year in review by group
• 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

The New Zealand government transport sector

MINISTER OF TRANSPORT
MINISTER FOR TRANSPORT SAFETY

MINISTRY OF TRANSPORT
Develops and provides transport policy and advice for the government, develops legislation for Parliament to enact, drafts regulations and rules in association with the transport Crown entities and represents New Zealand’s transport interests internationally. The Ministry also coordinates the work of the Crown entities, acting as an agent for the Minister of Transport.

NEW ZEALAND POLICE
Road policing (including speed enforcement, enforcement of alcohol laws, seatbelt enforcement, Community Roadwatch, Commercial Vehicle Investigation and highway patrols) and maritime patrol units.

CROWN ENTITIES (report through Boards)

Aviation Security Service*
Provides aviation security services for international and domestic air operations, including airport security, passenger and baggage screening.

Civil Aviation Authority*
Establishes and monitors civil aviation safety and security standards, carries out air accident and incident investigations, and promotes aviation safety and personal security.

Land Transport New Zealand
Allocates and manages funding for land transport infrastructure and services through the National Land Transport Programme, including assisting approved organisations. Manages access to the land transport system through driver and vehicle licensing, vehicle inspections, and rules development. Provides land transport safety and sustainability information and education. Supports tolling and charging policies and operations.

Maritime New Zealand*
Promotes maritime safety, environmental protection and security through standard setting; monitoring; education; compliance; safety services (navaids, radio) and oil pollution response.

Transit New Zealand
Operates New Zealand’s state highway network, including maintenance, construction, safety and traffic management. It has responsibility for state highway strategies and design guidelines, economic and environmental planning for state highways, technical standards and quality assurance systems.

Transport Accident Investigation Commission*
Investigates significant air, maritime and rail accidents and incidents to determine their cause and circumstances, with a view to avoiding similar occurrences in future.

THREE STATE-OWNED ENTITIES WITH TRANSPORT FUNCTIONS

Airways Corporation of New Zealand Limited – Provides air traffic management services and provides the Ministry with Milford Sound/ Piopiotahi Aerodrome landing and take-off data.

Meteorological Service of New Zealand Limited* – Provides public weather forecasting services and provides meteorological information for international air navigation under contract to the CAA.

ONTRACK – Manages Crown railway land and the national rail network. Legislation is currently before Parliament to transform ONTRACK into a Crown entity, similar to Transit New Zealand.

CROWN-ESTABLISHED TRUST

Road Safety Trust – This Crown-established trust provides funding for road safety projects and research with revenue received from the sale of personalised vehicle registration plates.

LOCAL GOVERNMENT

The sector works closely with local government. Local authorities own, maintain and develop New Zealand’s local road network and perform important regulatory transport functions. Regional councils (and unitary authorities) are required to develop regional land transport strategies that guide the transport decision making of local councils, and also fund public transport and Total Mobility schemes in conjunction with Land Transport New Zealand. In the Auckland region, the Auckland Regional Transport Authority carries out these functions. Some local authorities own seaports and airports, or share ownership with the Crown.

* Denotes an agency the Minister for Transport Safety oversees

Chair's report

I am pleased to present Land Transport New Zealand’s report for 2006/07.

This was Land Transport NZ’s second full year of operation.

In essence, 2006/07 was the ‘bedding in’ year for our safety and funding activities. It was also a year where we began to articulate the principles and action needed to develop a sustainable land transport system.

To assist our partners and stakeholders to understand our thinking around sustainability, we developed and published 13 trend statements that are being used to indicate progress towards a sustainable land transport system (see page 14 for the trend statements). These trends, which deal primarily with economic and environmental sustainability, cover infrastructure, user behaviour, vehicles, links with land use, legislation, the private vehicle fleet and the commercial and freight fleet. We will continue this work in 2007/08 by developing a framework that provides our staff with strategic guidance to aid the development and delivery of sustainability initiatives.

At the same time, the organisation has continued to assist and advise its partners, stakeholders and customers to ensure the smooth operation of the land transport system. Over the past 12 months we have:

• promoted sustainable and safe land transport
• allocated $2 billion to improve land transport
• regulated fairly to protect people and the environment
• engaged with communities, government and the transport industry.

Our partners and stakeholders have told us we’re on the right track. Our 2006/07 stakeholder survey results report 79 percent satisfaction with our service, a slight increase over 2005/06.

Board members have continued to guide the organisation with expertise and energy. The Board has changed considerably this year, with four new faces on the team of seven.

It is with regret that we farewelled Chair Dr Jan Wright in February. Jan, who was Chair of Land Transport NZ when the agency was established in 2004, led the organisation with much skill and care through a time of considerable transition. She is now our country’s Parliamentary Commissioner for the Environment. We thank Jan for her vision and enthusiasm and wish her well in her new role.

We also farewelled original Board members Gerry Te Kapa Coates and Bryan Jackson, and thank them for their service to Land Transport NZ.

We welcomed to the Board this year Dr Murray King, Gary McIver, Mayor Garry Moore and John Rutledge. Together with continuing Board members Greg Presland and Dr Janet Stephenson, they provide a wealth of knowledge and experience in the motor industry and transport and local government sectors. We look forward to their contributions over the next year.

During the year, the Minister of Transport announced the findings of the Next Steps transport sector review. The goal of the review was to identify if changes in investment planning, funding and structure could enhance the responsiveness, performance, capability and value for money achieved by all agencies in the sector. Many of the review’s recommendations will have an impact on Land Transport NZ, not least that our organisation and Transit New Zealand will merge to form a single transport entity.

Work is well underway to progress the merger, with the new entity expected to be established by 1 July 2008. The current Board sees as one of its key roles the maintenance of the momentum that has built up since the establishment of Land Transport NZ. We wish to ensure our customers and partners that we will maintain this ‘business as usual’ until the new entity is established.

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

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

Paul Fitzharris
Acting Chair
Land Transport New Zealand

Chief Executive's report

The period 2006/07 was Land Transport NZ’s second full year of operation. During that time it has been pleasing to see the efforts of staff in creating a sense of belonging and purpose. As a result we have seen increasingly high levels of competence and excellence in service delivery across our broad range of functions and our customer base. Both our customer and stakeholder surveys show good gains. This annual report describes that performance, along with the year’s highlights and achievements. Some of these are noted below.

Last December, the mandatory driving test for New Zealanders aged 80 and over was abolished, and a new licensing system based on older drivers presenting medical certificates has been introduced. The popular Safe with Age driver refresher course has been expanded so that anyone who attends the course is eligible for a subsidised private on-road driving refresher session.

We have continued our work to regulate fairly to protect people. Work has continued on the development of the Operator Rating System, which aims to improve the performance of commercial road transport operators against transport regulations and standards. The design of the mechanism that will generate operator ratings was finalised during the year. New safety requirements for heavy vehicles, including internationally approved standards and a new brake test, came into force in March 2007. Several months later, a new taxi enforcement team hit the streets in Wellington and Auckland, charged with monitoring companies and drivers and following up on public complaints.

In 2006/07 Land Transport NZ allocated over $2.3 billion to activities to improve the land transport system through the National Land Transport Programme (NLTP). In June 2007, we announced a record $2.4 billion of spending for land transport infrastructure and services in the 2007/08 NLTP.

During the year, two government reports on the performance of the land transport sector concluded that improvements could be made in terms of the sector’s strategic alignment, clarity of roles and value for money. This reflected our own view, which we presented to the Next Steps review on the land transport sector. Among the outcomes of the Next Steps review is the requirement that Land Transport NZ merge with Transit New Zealand to make a new transport entity. Land Transport NZ’s Board and staff will continue to put the needs of our partners and customers first as we work on rearranging ourselves.

We now have a Board of seven members, four of whom joined us in 2006/07. We are particularly proud that our inaugural chair, Dr Jan Wright, was appointed Parliamentary Commissioner for the Environment and we wish her well. We were also sorry to lose the guiding hands of outgoing Board members Gerry Te Kapa Coates and Bryan Jackson.

I would like to express my thanks to our Board members for their constant dedication and expertise throughout the year, and particularly our Acting Chair, Paul Fitzharris, who has been outstanding with his care for the organisation since the announcement of the review in February.

I commend Land Transport NZ staff for their professionalism and service during the year and I have no doubt they will continue this dedication into 2007/08.

We look forward to working with our colleagues from Transit and the Secretary for Transport and his team as the new government land transport sector takes shape over the next year. Finally, I wish to acknowledge the contribution made by our partners in the wider transport sector to our progress and achievements in 2006/07.

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.

Paul Fitzharris ONZM | Acting Chair

Paul retired from the NZ Police in 2001 as an Assistant Commissioner. During the latter part of his career, he was Acting Deputy Commissioner and represented the NZ Police on the National Road Safety Committee. He is currently Chair of the Prostitution Law Review Committee, a Board member of Orana Park Wildlife Park in Christchurch and the Patron of Neighbourhood Support NZ.

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Board members

Dr Murray King

Based in Wellington, Murray is an independent consultant specialising in transport. He has had over 35 years’ experience in land transport, including rail, trucking and buses, mainly as an executive with Tranz Rail Ltd and its predecessors. Murray has had active involvement (including membership) with regional councils’ transport committees since the mid 1980s. He is particularly interested in rail and road law, economics, safety, heritage and environmental impact. Murray is a Chartered Fellow of the Chartered Institute of Logistics and Transport.

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Gary McIver

Based in Hastings, Gary has an extensive background in commercial and general management, mainly in the motor industry. He is a former member of the Transit Board.

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Garry Moore

Garry trained as an accountant and has worked in both the public and private sectors. He is married to Pam Sharpe and has four children. In the 1980s, Garry worked for a number of employment programmes and was part of the founding group that formed Whalewatch Ltd, Kaikoura. He has had 15 years’ involvement in local body politics, starting in 1989 when he was elected as a member of the Area Health Board. Garry then served two terms as a councillor for the Christchurch City Council and was elected Mayor of Christchurch in 1998. He was the founding Chair of the Mayor’s Taskforce for Jobs and is Chair of Safer Christchurch.

Garry is a member of the Institute of Chartered Accountants of New Zealand and of the Institute of Directors. He is a Board member of Christchurch City Holdings Ltd, Canterbury Development Corporation and Whalewatch Ltd.

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Greg Presland

Based in Auckland, Greg is the principal of Presland & 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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John Rutledge

John is a civil engineer by profession and was Chief Executive of Opus International Consultants from its incorporation in 1991. He has experience in New Zealand and overseas on a wide range of projects, including highway and mass transit works. John’s previous career has included positions such as: Deputy Head of the Geotechnical Engineering Office in Hong Kong, Chief Designing Engineer and then Assistant Commissioner of Works (Engineering Services) at the Ministry of Works & Development (MWD) and, from 1988 when the state owned enterprise (SOE) Works and Development Corporation was incorporated, he was the General Manager of Consultancy Services.

John played a major role in the corporatisation of the MWD and in the consultancy activities becoming a SOE and then a private company, Opus. He was made a Distinguished Fellow of IPENZ in recognition of managing that change. John has been a Board member of the Centre for Advanced Engineering at Canterbury University, Polytechnics International NZ Ltd and was Chairman of the Structures Committee of the NRB’s Road Research Unit. At present, he is on the Board of the Wellington Cable Car Company.

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Dr Janet Stephenson

Janet lectures in planning and environmental studies at Otago University, and also coordinates an energy research initiative. She was previously a planner with 16 years’ experience working for local authorities and the NZ Historic Places Trust and as a planning consultant. Janet has a particular interest in sustainability, culture, energy and the environment.

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Board members farewelled in 2006/07

Dr Jan Wright | Chair (to 28 February 2007)

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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Gerry Te Kapa Coates (to 31 March, 2007)

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 (to 30 September 2006)

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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Who we are

Land Transport NZ’s statutory objective is to:

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

Land Transport NZ has 16 statutory functions (see 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, 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 and mission

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:

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:

What we do

Introduction

Land Transport NZ is a vital player in the land transport system. Every person or organisation wishing to develop, operate or participate in land transport has regular transactions with Land Transport NZ.

Land Transport NZ operates through five key interventions: funding; managing access to the land transport system; enabling; information and education; and charging. Land Transport NZ’s roles and activities are shown in Figure 2.

Figure 2 | Land Transport NZ's interaction with the land transport system

Land transport sustainability and safe transport on land

Land Transport NZ’s statutory functions include the promotion of land transport sustainability and safe transport on land in New Zealand. Land Transport NZ interprets this ‘promotion’ function as an interactive process with transport providers and users of the land transport system that result in trends ‘understood to be sustainable’ and represent safer transport on land. Land Transport NZ accepts that what is ‘understood as sustainable’ will need to be reviewed over time.

In 2006/07, Land Transport NZ identified a number of trends that need to be addressed for the sector to progress towards land transport sustainability and safer transport on land. These are set out below:

• New urban development patterns reduce the need for people to travel.
• Urban development and network design provide a safe and convenient environment for walking, cycling and other mobility options.
• Business and household expenditure on transport reduces in relative terms.
• The availability and use of public transport increases.
• More freight is carried on non-road modes, such as rail and coastal shipping.
• More people choose to walk, cycle, use public transport and reduce use of cars particularly at congested times.
• Mean travel speeds continue to decline and fatal and serious injury crashes reduce.
• People drive in ways that use less fuel and are safe for the conditions.
• The New Zealand vehicle fleet is more fuel efficient, safer and has improved environmental performance.
• Vehicles are well maintained and perform closer to new standards for longer.
• Commercial transport operators adopt management practices that promote safer and more sustainable performance.
• Business select transport operators with high safety and environmental standards.
• Traffic flows more efficiently on the road network.

Land Transport NZ goals

Land Transport NZ has six strategic goals – three strategic goals for land transport (goals 1–3) and three operational excellence goals (goals 4–6). These are, however, interdependent. The goals have been chosen in the belief that, if effectively deployed, they will generate a pattern of actions and choices by stakeholders which, sustained over time, will achieve Land Transport NZ’s vision and mission and contribute to the sustainable development goal for New Zealand and the vision and objectives of the New Zealand transport strategy.

Goal 1 – Use of land transport is sustainable and safe

Progress towards the broad outcomes promoted by the New Zealand transport strategy and the Land Transport Management Act is very much dependent on the choices and actions of people and businesses when they use land transport.

Choices and actions that support such progress come from people and businesses being well informed about the contributions they can make, from the standards that apply to transport networks, vehicles and fuels, and from the effectiveness and acceptability of enforcement.

Progress could be enhanced by providing incentives for good practice as well as applying penalties for illegal practices.

Facilitating informed choices

Land Transport NZ delivers a road safety advertising campaign that supports Police enforcement and contributes to the reduction of road trauma by undertaking publicity campaigns that increase public awareness and change behaviour relating to:

• excessive speed, drink-driving, safety belts and failure to give way
• identified road safety risks specific to Maori and Pacific Island people.

Land Transport NZ also operates a voluntary incentive-based initiative to encourage New Zealand drivers to improve and maintain their knowledge of the road rules and road safety and commissions research into road safety problems.

Rules and standards

Land Transport NZ is funded by the Ministry of Transport to provide Rules development services for the Minister for Transport Safety. Rules are tertiary legislation that, in conjunction with associated regulations, enable the aims of primary legislation and many of the functions of Land Transport NZ to be achieved. The development of Rules is subject to an extensive process of consultation with other government sector entities, the transport industry, and the wider public.

Compliance and registry services

Land Transport NZ has a substantial land transport regulatory and 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 road-related revenue. A large number of individual transactions are conducted in providing these delivery services, eg 564,000 driver licences and 3,751,000 vehicle licences were issued in the 2006/07 financial year.

Key regulation and service delivery areas include:

• licensing drivers
• licensing transport operators, including taxi, truck and bus companies
• auditing road and rail operators
• administering the licensing and registration of vehicles
• monitoring the safety of vehicles through entry-level certification and in-service inspections through warrant of fitness and certificate of fitness systems
• overseeing the safety of the rail system.

Goal 2 – Greater synergy within the land transport sector

Progress towards the broad outcomes of the New Zealand transport strategy and the Land Transport Management Act 2003 is enhanced if the decisions and actions of public and private sector transport stakeholders support each other.

Decisions and actions that support such progress will come from:

• Well coordinated land use and transport planning by those who develop and operate the land transport system. To deliver key results, Land Transport NZ relies on 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, the Regional Land Transport Strategy, and the purpose and objectives of the Land Transport Management Act 2003.
• Facilitating the participation and cooperation of sector players by encouraging improved alignment between national policy goals, regional strategies, sub-regional and district planning and local activities. Building effective relationships will enable us to strengthen the alignment with the statutory frameworks for funding land transport and using the land transport system, improve performance and synergies between asset management and investments in how those assets are used, and ensure accurate identification of problems and the development and implementation of integrated and sustainable solutions.

Goal 3 – Improved performance of land transport networks

Progress towards the broad outcomes of the New Zealand transport strategy and the Land Transport Management Act 2003 is very much dependent on the quality of activities carried out by those organisations that develop and operate land transport networks. Land Transport NZ’s partners, who plan for, develop and operate different components of land transport networks, are responsible for their own specific functions.

The challenge for Land Transport NZ, particularly through our funding function, is to bring about an optimum balance between the needs of different modes and users, and between existing and new infrastructure and services that make up land transport networks. We do this through:

Ensuring sustainable management of networks: Under the provisions of the Land Transport Management Act 2003, 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.

Ensuring connectivity between transport modes: Land Transport NZ is becoming actively involved in transport demand management activities, including assisting development and promotion of travel behaviour change initiatives, such as travel plans and safer pedestrian and cycling routes in at-risk urban areas. Land Transport NZ has also taken a leadership role in managing the implementation of the Government’s Getting there – on foot, by cycle strategy.

Improving accessibility for all users: Land Transport NZ financially assists the provision of passenger transport services in order to provide people with alternative modes of transport and improve overall system integration. This is achieved through funding of subsidies on contracted regional council bus, ferry and rail services, financially assisting some capital expenditure by regional councils and territorial local authorities and financially assisting regions for the operation of the Total Mobility scheme (a taxi-based transport service for people with disabilities).

Funding development of infrastructure and services: Around 40 percent of the NLTP is allocated to the maintenance of the roading network. Land Transport NZ’s policy is to fund the most cost-effective maintenance strategy for each section of road over the medium to long term. 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 continues to be essential.

Goal 4 – Confident, capable, motivated people

Our ability to carry out our functions effectively and efficiently, while promoting land transport sustainability and safe transport on land, depends on the quality of our people and their ability to deliver what our customers need.

Land Transport NZ’s 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.

In order to achieve this, we focus on developing our skills. Our aim is to provide 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. Developing and nurturing our desired organisational culture is a significant and critical component in having people who are confident, capable and motivated.

Goal 5 – Effective information and business systems

Land Transport NZ is a large business with a high dependency on large-scale information systems, such as the motor vehicle and the driver licence registers. We also depend on efficient business systems to function effectively internally and through our 4000 agency outlets.

Access to and use of high quality information is becoming increasingly important as we develop capability in revenue management and more closely monitor the performance of the land transport system as an aid to decision-making by Land Transport NZ and our partner organisations.

Goal 6 – Leadership that enables

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 seen at all levels and should support people in their roles so that they can achieve what is expected of them – this is what leadership that enables does.

To this end, Land Transport NZ has developed a set of priority leadership protocols that are being promulgated throughout the organisation and managers are charged with demonstrating these in the day-to-day management of people and resources.

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, customer focus and improved capability. 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.

Leadership development

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. An organisation as large and diverse as Land Transport NZ requires not only good leadership at management level, but also the promotion and development of leadership qualities throughout the organisation to ensure our people have the confidence, capability and motivation to perform.

In 2006, Land Transport NZ focused on building a common language and culture of leadership in the Emerging Leaders programme. In 2007, we have continued to build on the success of Emerging Leaders offering a customised and expanded programme aligned to the State Services Commission’s development goals and the leadership capability profile. This involves various leadership development programmes suitable for leaders and managers at all levels, as well as a Technical Leaders programme which provides an opportunity for aspiring leaders and people who lead and influence change in the organisation, but do not have people reporting to them in their current role.

Induction

Land Transport NZ continues to provide the monthly induction programme which was introduced in 2006. The induction process provides a critical opportunity to communicate Land Transport NZ’s values, to help familiarise employees with their new roles, to help them settle in to the organisation and become part of their team as quickly and smoothly as possible. The programme has now been expanded to include visits to our contact centre and a regional office, and has welcomed more than 150 people to the organisation in the last 12 months.

Corporate learning and development

During the 2005/06 year the Leadership Team approved a process for managers to submit bids for learning and development training which benefit Land Transport NZ as an organisation. A centralised learning and development fund was established to provide for organisation-wide learning and development opportunities. The Corporate Learning and Development Committee has now approved funding towards a number of initiatives supporting staff development for 210 people in project management, personal efficiency, the machinery of government and enterprise data reporting tools.

Competency framework

Land Transport NZ is developing 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. A pilot of the framework was run with one business group from March to the end of July 2007. In 2008 this will be consolidated and extended to the rest of the organisation.

Diversity and fairness programme

Land Transport NZ has built a diversity and fairness programme that is about fostering a supportive and understanding working environment in which we treat our employees, stakeholders, and customers with respect and dignity. To help us achieve this, we have developed a diversity and fairness strategy that will add value to policies, practices and processes relating to:

• Cultural relationship capability – designed to ensure individuals have the skills to engage and work with Maori and other ethnic groups, define our position relating to the Treaty of Waitangi and develop the capability of our staff to better understand the culture, language and customs of Maori and other ethnic groups.
• Equal employment opportunity (EEO) – this project will produce the EEO strategy, policy and toolkits that will assist Land Transport NZ to be recognised as a ‘good employer and preferred place of work’. It is aimed at preventing and eliminating workplace discrimination and will ensure that all employees are considered for the employment of their choice and have the chance to perform to their maximum potential, enabling us to develop a workplace that attracts, retains and values our diverse staff.
• Work life balance – this project will include the development of flexible work options to allow staff to achieve satisfaction in their workplace environment, while ensuring that the organisation remains both productive and efficient.

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 AS/NZS4801 (Int.) 2001, 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 Leadership Team and Corporate Health and Safety Committee
• maintaining tertiary level within ACC Workplace Safety Management Practices Programme, which shows the continuing commitment to best practices in health and safety within the workplace.

The year in review by group

Policy and Planning Group

General Manager | Simon Whiteley

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 2006/07

• Continued development of a passenger transport procurement framework.
• Advanced the review of procurement procedures for physical works and professional services.
• Completed the integration of Land Transport NZ’s land transport programme and the National Land Transport Programme.
• Completed and published the Economic evaluation manual Volume 1, containing guidelines and procedures for the evaluation of land transport infrastructure projects.
• Continued to develop and lead the introduction of travel behaviour change initiatives.
• Commenced work on the implementation of the Getting there – on foot, by cycle strategy. Considerable progress was made on four of the seven initiatives led by Land Transport NZ while business cases have been developed and funding approved for progressing the remaining three initiatives.
• Migrated the safer routes programme to neighbourhood accessibility plans. Reviewed and released programme guidelines.
• Consulted with regional authorities on progressing the second phase of improvements to the Total Mobility scheme.
• Commenced work with the transport industry to review and replace the Manual of traffic signs and markings. The project steering group was established and the drafting process commenced for two volumes of the document and one volume was released for public comment.
• Trained staff from Land Transport NZ and ONTRACK in the use of the Australian level crossing assessment model to assess levels of risk and prioritise corrective work at level crossings and undertook assessment surveys on level crossings in Auckland.
• Completed Rules on heavy vehicle brakes, vehicle emissions, operator licensing, driver hours and logbooks, and eight amendment Rules arising out of the Omnibus Amendment Rule.
• Consulted on proposed Rules on operator safety rating, frontal impact and vehicle noise and a revision of the rule on vehicle emissions.
• Assisted the Ministry for the Environment to scope development of national environmental
  standards.
• Contributed to a review of transport revenue options.

Intentions for 2007/08

• Introduce sustainability framework to guide business planning.
• Complete Rules on emissions, noise, frontal impact, and operator safety rating.
• Commence Rules on traction engines, and amendments to Rules on road users, traffic control devices, dangerous goods, fuel consumption information and driver licensing.
• Continue implementation of the walking and cycling strategy through building on current initiatives and delivery of the seven new strategic initiatives led by Land Transport NZ.
• Further develop a website to guide car buyers towards safer, more fuel-efficient and less-polluting vehicles.
• Continue network management initiatives (including rail crossing management, the manual of traffic signs and markings and network management systems).
• Assume a national role with respect to supporting workplace travel planning for core government departments and agencies.
• Continue to improve public transport procurement procedures, including development of guidelines for regional public transport plans.
• Review and update procurement procedures for physical works and professional services.
• Undertake a review of the funding allocation process.
• Continue development of road pricing and tolling policy.
• Progress the development of multi-modal evaluation procedures.
• Develop freight policy and continue the investigation into the roles of coastal shipping and rail.
• Continue urban design protocol activities and land use and transport planning activities, including integrated transport guidelines and transport impact guidelines.

Partnerships and Programmes Group

General Manager | Richard Braae

The Group is responsible for encouraging the development of land transport programmes that address safety and sustainability objectives. The Group develops the Road Policing Programme and is responsible for developing and managing the National Land Transport Programme. The group leads the development of education initiatives that encourage the safe and sustainable use of the land transport system.

Highlights and achievements

• Managed the 2006/07 National Land Transport Programme and the development of the 2007/08 National Land Transport Programme.
• Developed the 2007/08 and 2008/09 National Land Transport Programme guidelines and revised the Programme and funding manual, and created a training component for 2008/09 guidelines.
• Continued to develop LTP online as a one-stop site for partner and Land Transport NZ interaction about land transport programmes.
• Reviewed all asset management plans to ensure good processes and systems are in place for managing infrastructure assets.
• Transferred management of community focused land transport activities to approved organisations.
• Identified appropriate indicators that reflect on progress towards sustainable and safe land transport.
• Provided approved organisations with At a glance reports on the performance of the land transport system.
• Undertook the annual stakeholder survey.
• Developed a stakeholder engagement strategy to enable the organisation to communicate effectively with their stakeholders.
• Developed an education strategy that provides clear objectives and priorities for promoting transport safety and sustainability.
• Investigated further interventions into driver fatigue in conjunction with the Accident Compensation Corporation (ACC), NZ Police and the Ministry of Transport.

Intentions for 2007/08

• Manage the 2007/08 National Land Transport Programme (NLTP) and the development of the 2008/09 NLTP.
• Contribute to the Ministry of Transport led processes around the update of NLTP funding levels.
• Prepare for the implementation of new planning and funding policies as determined by the Next Steps process, including providing guidance on the funding allocation process.
• Develop and apply the methodology for assessing integrated transport strategies.
• Continue to develop a relationship strategy to ensure a close alignment between the organisation’s objectives and the objectives of the strategy for each key relationship.
• Develop the implementation plan for the education strategy.
• Undertake the annual stakeholder survey.
• Develop performance indicator sets for identifying current land transport trends and improvement opportunities in the areas of infrastructure, vehicles, services and travel demand.
• Continue to develop the performance indicator framework to inform central and local government decision makers about progress towards safe and sustainable land transport in New Zealand.

People and Culture Group

General Manager | Carolina Gartner

The Group is responsible for the development of business style and the implementation of people management and development strategies. These strategies enhance and support organisational capability and development, and drive the creation of a unique Land Transport NZ organisational culture

Highlights and achievements

• Completing an analysis of staff connectivity to the organisation (personal values shared with those of the organisation).
• In the last 12 months, employee turnover has reduced from 16.3 percent to 13.6 percent.
• Selected and began piloting an organisation-wide competency framework that identifies the key skills needed for each role in the organisation. The framework is also used to assess employees against skills and roles in order to provide personal development plans.
• Implemented four new leadership development programmes to higher than expected participation. As at 30 June, over 80 people had either completed a programme or were enrolled in one. Evaluation results were positive and the programme has been modified to account for the new Crown entity and the anticipated requirements of managers.
• Developed a single new remuneration system for employees replacing three legacy systems.
• Assisted in filling over 100 positions.
• Negotiated a new collective employment agreement for the Transport Registry Centre with the Engineering Printing and Manufacturing Union.
• Released 25 new or updated human resource policies after consultation with staff.
• Developed and implemented a new standard individual employment agreement after consultation with staff.
• Implemented a new managing for performance system to replace three legacy systems.
• Developed a diversity and fairness strategy which guides the way we want to treat our employees, stakeholders and customers.

Intentions for 2007/08

• Implement the diversity and fairness strategy.
• Continue to develop and implement the leadership and management development strategy.
• Implement the new remuneration system.
• Develop and implement a coaching and mentoring programme.
• Complete a new staff engagement survey and identify key issues to work on.
• Implement a system for recording personal development and training information.
• Improve the reporting of human resources information to management and the Board.
• Renegotiate the PSA collective employment agreement.
• Renegotiate the Engineering Printing and Manufacturing Union collective employment agreement.
• Work with Transit to help the integration to the new Crown entity.
• Support the move of Wellington-based staff into new premises located at Chews Lane.
• Implement the new State Services Commission Code of conduct.

Regulatory Services Group

General Manager | Ian Gordon

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 of Transport for the motor vehicle registry and revenue management activities.

Highlights and achievements

• Continued the development of the Operator Rating System, including:
  • engaging a supplier for the development of the rating engine software solution
  • securing Board approval for the development of the performance programme that will encourage licensed transport operators to improve performance
  • consulting on the Operator Safety Rating Rule
  • continuing with the implementation of the communications strategy.
• The Secretary for Transport and the Land Transport NZ Chief Executive accepted recommendations concerning the future governance arrangements for the provision of motor vehicle register and registry management services, progressing one of the outstanding recommendations from the 2004 transport review.
• Finalised the Heavy Vehicle Brake Rule implementation plan and formulated the detailed project plan for the roll-out of the brake testing requirements.
• Developed a competency framework for warrant of fitness inspectors that defines the process for ensuring inspectors remain competent throughout their career.
• Concluded a detailed review of operator licensing fees and charges regulations, with the development of a draft paper by the Ministry of Transport, seeking Cabinet Policy Committee approval for the current fees and charges to be increased.
• Presented to the Ministry of Transport recommendations for a review of the Road User Charges Act to address accessibility of operator records, processes for assessing evaded road user charges and related enforcement issues.
• Progressed the development of the intelligence capability for capturing and analysing data to enhance evidence-based decision-making and targeted enforcement.
• Progressed an assessment and evaluation of service delivery options in anticipation of renewal of transport service delivery agent contracts in 2009.
• Continued introducing the ‘requirements to operate’ under the new regime specified by the Railways Act 2005, including the approval of over 60 percent of rail licence holders’ new safety cases.
• Commenced development work on databases to ensure postcodes and address formats are aligned with NZ Post’s new standards.
• Commenced a joint project with Transit to develop a multi-lane free-flow electronic tolling system for the State Highway 1 extension, ALPURT B2.

Intentions for 2007/08

• Further develop the Operator Rating System, including testing the trial rating engine software solution, engaging and progressing the performance programme concept in conjunction with industry.
• Improve the effectiveness of the commercial road transport engagement programme.
• Implement the changes to the governance arrangements for the delivery of the motor vehicle register and registry management services as directed by the Secretary for Transport.
• Conclude an assessment and evaluation of the service delivery options in anticipation of renewal of transport service delivery agent contracts in 2009.
• Implement enhancements to improve the quality of and access to information for evidence-based decision-making for the Regulatory Services Group.
• Implement the competency framework for warrant of fitness inspectors that defines the process for ensuring inspectors remain competent throughout their career.
• Continue the Heavy Vehicle Brake Rule implementation with commencement of agent site upgrades and formulating a regional roll-out plan for the brake testing requirements.
• Completion of the development and roll-out of the Rail Information System (RIS) electronic database.
• Commence work across the motor vehicle register to reduce the creation of multiple identities.
• Assess the profile and risk of driver licence enrolment processes against the whole-of-government Evidence of Identity standards.
• Procure and implement workforce management tools for the Contact Centre.
• Implement an on-line transaction facility for the purchase of road user charges aimed predominantly at light diesel vehicles.
• Implement a new internet transaction payment option allowing payment to be made via an internet banking transaction as an alternative to using a credit card.
• Progress changes to restrict access to personal information from the motor vehicle register once legislation is approved.

Corporate Services Group

General Manager | Noel Lee

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

• Completed the roll-out of the electronic documents and records management system.
• Developed a data architecture that will integrate and centralise corporate data, which will enable greater use and sharing of this information.
• Continued redevelopment of the website and intranet.
• Completed financial analysis for revised transport licensing fees.
• Began the first stage of developing a finance strategy for Land Transport NZ.
• Obtained additional office space in the Auckland, Hamilton and Christchurch regional offices.
• Continued work on the construction and relocation of staff to the new National Office at Chews Lane in Wellington, with completion due in April 2008.
• Began the development of a risk management framework system.
• Built a new link system for NZ Post and other agents conducting motor vehicle registration transactions.
• Continued to progress the design and implementation of components for the Operator Rating System.
• Began the tender process for negotiating a replacement telecommunications network supply contract.
• Undertook analysis and investigation for the information systems strategic plan.
• Undertook a review of the motor vehicle register, information technology support and strategy (in conjunction with the Ministry of Transport).

Intentions for 2007/08

• Continue to develop the finance strategy.
• Continue to develop the risk management framework – risk management system.
• Complete the Chews Lane National Office construction and relocation project.
• Continue implementing the recommendations made by the independent quality assessment of the internal audit section.
• Conduct a review of driver licensing fees.
• Enhance the National Land Transport Programme 2007/08 (NLTP) and financial reporting systems for the Board and management of Land Transport NZ.
• Undertake the implementation of the NZ International Financial Reporting Standards (NZIFRS).
• Provide support for the introduction of various transport legislation, including the Public Transport Management Bill and the Land Transport Amendment Bill.
• Develop a legislative compliance framework.
• Implement a new link system between Land Transport NZ and NZ Post for processing motor vehicle registration transactions.
• Implement components of the Operator Rating System.
• Implement a new postcode management system to update Transport Registry Centre transactions for taking advantage of NZ Post’s new postcodes.
• Implement a new telephone network voiceover internet protocol for Land Transport NZ’s National Office move to Chews Lane.
• Complete the information systems strategic plan.
• Create a business case for the motor vehicle and driver licensing registers’ strategy and future replacement.
• Implement a new system to support rail safety management services.
• Work with Transit on integrating business processes and systems for the new Crown entity.

Land Transport New Zealand statement of responsibility

Pursuant to the Crown Entities Act 2004, the Chair, Chief Executive, Board and management of Land Transport NZ acknowledge responsibility for the preparation of the financial statements, the statement of service performance 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 and statement of service performance fairly reflect the financial position and operations of Land Transport NZ for the year to 30 June 2007.

P Fitzharris
Acting Chair
11 October 2007

J Stephenson
Board Member
11 October 2007

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Page created: 14 November 2007