Land Transport New Zealand annual report

Statement of service performance

for the year ending 30 June 2006

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 statement of forecast service performance is formatted according to the output class structure contained in the 2006/07 Estimates of appropriations. As an organisation, we work more directly with activity classes, but the alignment between the two is quite close.

The major difference occurs with respect to regionally distributed funds, as the output class structure shows these funds aggregated into regional output classes, whereas data presented by activity class will show these funds allocated into the appropriate activity class

Output class | Research and performance monitoring

Description

Under this output class Land Transport NZ will:

• commission and publish research
• monitor and report on the performance of the land transport system.

Results sought

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

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

Delivery

The research output is contracted out contestably to researchers.

Performance monitoring is delivered directly by Land Transport NZ.

PERFORMANCE MEASURE	ACTUAL 2005/06	TARGET 2006/07	ACTUAL 2006/07
Quantity
Delivery of a land transport statistics report	New	1	1
Delivery of a published research programme with percentage funding allocation (by theme):	New	1	1
> Asset management	37%	No change	32%
> Natural hazard risk management	2%	Decrease	2%
> Safety and personal security	16%	No change	10%
> Environmental effects	17%	No change	14%
> Travel behaviour change	14%	Increase	20%
> Traffic management	5%	No change	7%
> Sustainable land transport	9%	Increase	14%
Delivery of a performance monitoring programme	1	1	1
PERFORMANCE MEASURE	ACTUAL 2005/06	TARGET 2006/07	ACTUAL 2006/07
Quality
Percentage of approved organisations and relevant transport industry representatives that agree that Land Transport NZ’s research programme adds value to the land transport industry	81%	≥80%	87%
Percentage of approved organisations and relevant transport industry representatives that agree that performance monitoring adds value to the land transport industry	72%	≥80%	79%
Percentage of research projects completed on time	49%	≥75%	46%1

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.

RESEARCH AND PERFORMANCE MONITORING	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National land transport fund	4,953	4,244	4,244
Total revenue	4,953	4,244	4,244
Expenditure
Research external	4,000	4,000	3,843
Costs and expenses (detail below)	1,563	2,058	2,061
Total expenditure	5,563	6,058	5,904
Output class net surplus (deficit)	-610	-1,814	-1,660
Cost and expenses
Research	526	429	106
Performance monitoring	1,037	1,629	1,955
	1,563	2,058	2,061

Output class | Promotion, information and education activities

Description

Under this output class Land Transport NZ will:

• commission national advertising on land transport related issues
• commission national promotion of walking and cycling
• commission nationally managed school road safety education
• provide funding for the Community Road Safety Programme (CRSP)
• manage the Crash Analysis System (CAS)
• provide information and education for drivers, operators, vehicles, road controlling authorities, and others
• provide administration services to the Road Safety Trust.

Results sought

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.

Delivery

The first four outputs are contracted out.

Other outputs are delivered directly by Land Transport NZ.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quantity
Number of contracts for delivery of the Community Road Safety Programme (CRSP)	181	150–180	161
Number of schools participating in the Road Safety Education Programme	1,257	930	5572
Number of publications issued or updated	New	132	142
Road safety advertising package – average number of targeted audience rating points (TARPs) purchased	8953	8,000	10,908

Notes
² An evaluation of the RoadSense Ata Haere strategy in 2006 led to redevelopment. All contracts with schools ended December 2006 enabling a trial from January to June 2007 with 158 schools. The original targets were therefore not achieved due to undertaking the trial.
³ Was monthly target, now annual.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quality
% of Community Road Safety Programme providers who rate Land Transport NZ assistance and advice as ‘good or better’ in independent surveys against agreed criteria4	73%	≥75%	78%
Percentage of survey respondents who rate publications as useful or better	80%	≥75%	85%
Total unprompted recall by the target audience of road safety television commercials, tested quarterly and averaged over 12 months	77%	≥70%	83%
Relevance of road safety television commercials to the target audience, tested quarterly and averaged over 12 months	63%	≥60%	70%

PROMOTION, INFORMATION AND EDUCATION ACTIVITIES	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National Land Transport Fund	28,675	33,826	33,826
Third party revenue	4,011	2,077	4,476
Total revenue	32,686	35,903	38,302
Expenditure
Bike wise	900	1,000	1,015
RoadSense	2,346	2,100	2,074
Community Road Safety Programme	7,595	6,985	5,635
Advertising	14,790	13,082	12,547
Costs and expenses (detail below)	7,345	10,769	9,662
Total expenditure	32,976	33,936	30,933
Output class net surplus (deficit)	-290	1,967	7,369
Cost and expenses
Road Safety Trust	179	187	140
Bike wise	0	388	218
RoadSense	0	580	180
Community Road Safety Programme	39	1,787	912
Advertising	0	1,900	2,307
Crash Analysis System	2,207	2,021	2,106
Education	4,920	3,906	3,799
	7,345	10,769	9,662

Output class | Regulatory implementation and enforcement

Description

Under this output class Land Transport NZ will:

• develop standards and procedures, monitor and audit:
  • vehicle certification and testing
  • transport service operators
  • driver licenses
  • rail operators
  • road networks
• provide ministerial advice
• develop land transport Rules under contract to the Ministry of Transport.

Results sought

Rules development and compliance monitoring activities contribute positively to safety and sustainability outcomes for land transport.

Delivery

This output class is delivered directly by Land Transport NZ and agents.

PERFORMANCE MEASURE	ACTUAL 2005/06	TARGET 2006/07	ACTUAL 2006/07
Quantity
Delivery of an agreed Rules development programme	New	1	1
Delivery of an agreed audit programme covering:
> regulatory compliance of rail licence holders and licensed transport operators, eg passenger services (including taxis) and goods services; and
> agent service delivery (including driver testing, licence administration, and vehicle certification services)	New	1	1
Rules programme will meet the quality and timeliness requirements in the 2006/07 agreement for Rules development services	New	Yes	Yes
Percentage of audits of regulatory compliance and agent service delivery will be carried out according to agreed standards	New	≥95%	100%
Driver tests that comply with the Land Transport NZ Driver testing officers manual (as determined by audit)	100%	≥95%	99.7%
Standard of service supplied by agents providing vehicle certification services as measured via the certification performance indicator (scale 0–3)	New	≥2.5	2.62
Reported rail accidents and incidents are addressed in accordance with the Railways Act 2005 and Land Transport NZ procedures	New	100%	100%

REGULATORY IMPLEMENTATION AND ENFORCEMENT	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – annual	548	548	548
Crown – National Land Transport Fund	1,335	1,335	1,985
Contract services	1,013	1,013	1,013
Third party revenue	19,476	20,386	22,097
Total revenue	22,372	23,282	25,643
Expenditure
Ministerial advice	118	308	257
Rail audit and monitoring	656	971	735
Driver licence audit and monitoring	1,167	1,487	1,314
Rules development	1,049	1,808	1,059
Roading network audit and monitoring	2,550	3,556	2,094
Transport service operator audit and monitoring	3,867	6,892	7,887
Vehicle audit and monitoring	11,032	10,383	10,560
Total cost and expenses	20,439	25,405	23,906
Output class net surplus (deficit)	1,933	-2,123	1,737

Output class | Licensing activities

Description

Under this output class Land Transport NZ will:

• commission licensing and testing services for drivers
• provide licensing services for transport service operators
• provide licensing services for rail operators
• maintain the currency and integrity of licence-related data in statutory registers
• provide accurate, timely and relevant licensing information and advice to members of the public and service delivery agents
• pay fees to storage providers for unclaimed vehicles impounded by the NZ Police
• commission drug and alcohol assessments.

Results sought

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

Delivery

This output class is delivered directly by Land Transport NZ (or contracted agents).

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quantity
Driver licences issued (new, renewals, endorsements, overseas conversions and conversions/upgrades)	565,000	600,000	564,000
Transport services licences issued	3,721	2,500–3,500	3,751
Theory, practical and older driver tests	375,000	380,000	339,000
Number of vehicle impoundment payments	2,735	4,800–5,000	3,051
Number of drug and alcohol assessments	967	1,400	895
PERFORMANCE MEASURE	ACTUAL 2005/06	TARGET 2006/07	ACTUAL 2006/07
Quality
Call centre grade of service for driver licensing activities and/or enquiries:
> Percentage calls answered within 30 seconds	New	≥80%	86.7%
> Quality assurance of customer service representatives’ performance	New	≥97%	98.5%
Customer satisfaction (ie % customers who rate call centre and/or agents’ service for driver licensing activities and/or services as ‘good or better’) based on independent surveys	New	≥90%	93%

REGULATORY IMPLEMENTATION AND ENFORCEMENT	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – annual	548	548	548
Crown – National Land Transport Fund	1,335	1,335	1,985
Contract services	1,013	1,013	1,013
Third party revenue	19,476	20,386	22,097
Total revenue	22,372	23,282	25,643
Expenditure
Ministerial advice	118	308	257
Rail audit and monitoring	656	971	735
Driver licence audit and monitoring	1,167	1,487	1,314
Rules development	1,049	1,808	1,059
Roading network audit and monitoring	2,550	3,556	2,094
Transport service operator audit and monitoring	3,867	6,892	7,887
Vehicle audit and monitoring	11,032	10,383	10,560
Total cost and expenses	20,439	25,405	23,906
Output class net surplus (deficit)	1,933	-2,123	1,737

Output class | Licensing activities

Description

Under this output class Land Transport NZ will:

• commission licensing and testing services for drivers
• provide licensing services for transport service operators
• provide licensing services for rail operators
• maintain the currency and integrity of licence-related data in statutory registers
• provide accurate, timely and relevant licensing information and advice to members of the public and service delivery agents
• pay fees to storage providers for unclaimed vehicles impounded by the NZ Police
• commission drug and alcohol assessments.

Results sought

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

Delivery

This output class is delivered directly by Land Transport NZ (or contracted agents).

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quantity
Driver licences issued (new, renewals, endorsements, overseas conversions and conversions/upgrades)	565,000	600,000	564,000
Transport services licences issued	3,721	2,500–3,500	3,751
Theory, practical and older driver tests	375,000	380,000	339,000
Number of vehicle impoundment payments	2,735	4,800–5,000	3,051
Number of drug and alcohol assessments	967	1,400	895
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quality
Call centre grade of service for driver licensing activities and/or enquiries:
> Percentage calls answered within 30 seconds	New	≥80%	86.7%
> Quality assurance of customer service representatives’ performance	New	≥97%	98.5%
Customer satisfaction (ie % customers who rate call centre and/or agents’ service for driver licensing activities and/or services as ‘good or better’) based on independent surveys	New	≥90%	93%

LICENSING ACTIVITIES	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – annual	1,655	1,655	1,655
Crown – National Land Transport Fund	444	0	0
Third party revenue	42,771	45,665	38,566
Total revenue	44,870	47,320	40,221
Expenditure
Rail operator licences	367	273	619
Transport service operator licences	1,008	1,459	1,831
Driver licences and testing	41,536	47,021	43,276
Other licensing	357	423	255
Total costs and expenses	43,268	49,176	45,981
Output class net surplus (deficit)	1,602	-1,856	-5,760

Output class | Management of funding allocation system

Description

Under this output class Land Transport NZ will:

1. Programme management
   • Manage the National Land Transport Account, including the development and administration of:
     • the National Land Transport Programme (NLTP)
     • Land Transport NZ’s land transport programme
     • procurement procedures, policies and guidelines
     • funding agreements with approved organisations for the implementation of the National Land Transport Programme
   • audit approved organisations in relation to activities approved by Land Transport NZ, and the operation
     of the approved organisation’s land transport disbursement account.
2. Administration and project control by approved organisations
   • Provide funding for administration of land transport activities by Transit and local authorities.
   • Assist and advise approved organisations with their contribution towards an affordable, integrated, safe, responsive and sustainable land transport system.

Results sought

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

Delivery

Output 1 is delivered directly by Land Transport NZ.

Output 2 provides funding to approved organisations.

PERFORMANCE MEASURE	ACTUAL 2005/06	TARGET 2006/07	ACTUAL 2006/07
Quantity
Development and delivery of the National Land Transport Programme (incorporating the Authority’s Land Transport Programme)	New	1	1
Delivery of a performance monitoring audit programme	New	1	1

PERFORMANCE MEASURE	ACTUAL 2005/06	TARGET 2006/07	ACTUAL 2006/07
Quality
Generally applied funding priority threshold:	New
> Seriousness and urgency		Medium	Medium
> Effectiveness		Medium	Medium
> Economic efficiency		High	High
% of relevant stakeholders who rate the way in which Land Transport NZ assists and advises stakeholders to formulate proposed activities and procurement procedures as ‘good or better’ based on independent surveys against agreed criteria	59%5	>75%	78%
% of relevant stakeholders who rate the way in which Land Transport NZ processes and administers funding applications and procurement procedures as ‘good or better’ based on independent surveys against agreed criteria	60%5	>75%	83%
% of relevant stakeholders who rate the way in which Land Transport NZ undertakes its auditing activities as ‘good or better’ based on independent surveys against agreed criteria	78%5	>75%	85%
Publication of the NLTP for the following financial year no later than 30 June	Yes	Yes	Yes
Percentage of agreements with approved organisations that are in place by 31 July	72%	100%	44%6
Efficiency of the National Land Transport Programme as measured by benefit/cost ratio (average for applicable approved activities)	3.6	>2	4.0
Land Transport NZ costs for management of the funding allocation system as a % of the total cost of the National Land Transport Programme	0.8%	<1%	0.7%

MANAGEMENT OF FUNDING ALLOCATION SYSTEM	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National Land Transport Fund (NLTF)	13,287	11,102	11,102
Crown – NLTF (included in the NLTP)	0	57,499	57,499
Total revenue	13,287	68,601	68,601
Expenditure
Costs and expenses (Land Transport NZ)	12,078	11,668	12,777
Administration and project control (included in the NLTP)	0	72,690	70,341
Total expenditure	12,078	84,358	83,118
Output class net surplus (deficit)	1,209	-15,757	-14,517

⁵ 2005/06 results based on survey rating of ‘very good or better’.
⁶ This measure is subject to approved organisations returning the agreements on time. Because the 2006/07 agreement was changed from previous years, a number of approved organisations required further time to consider the new agreements prior to signing them.

Output class | Motor vehicle registry and revenue management

(Ministry of Transport output class delivered by Land Transport NZ)

Description

The provision of 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.

Land Transport NZ is contracted to provide these services under an agreement with the Secretary for Transport.

Results sought

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

Delivery

This output class is delivered directly by Land Transport NZ (or contracted agents).

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quantity
Motor vehicle register (MVR) transactions		8,050,000	7,988,000
> MVR licensing compliance (proportion of licensed vehicles in the MVR)	New	≥88.5%	88.2%
> MVR revenue compliance (proportion of vehicles re-licensed within 12 months of licence expiry)	New	≥98.5%	98.4%
Road user charges (RUC) transactions	2,272,000	2,245,000	2,139,000
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quality7
Accuracy of data on the MVR	New	≥95%	96.3%
Identified RUC evasion	$12.78m	$6m	$10.0m
Identified RUC evasion revenue recovered	Nil	30%	53.7%
RUC and MVR revenue written off as bad debt	Nil	$5m	$11.1m
Call centre grade of service for MVR and RUC activities and/or enquiries:
> percentage calls answered within 30 seconds	New	≥80%	85.9%
> quality assurance of customer service representatives’ performance	New	≥97%	97.9%
Customer satisfaction (ie % customers who rate call centre and/ agents’ service for MVR and RUC activities and/or services as good or better) based on independent surveys	New	≥90%	96%
Costs per MVR transaction	$5.83	$5.51	$5.42

MOTOR VEHICLE REGISTRY AND REVENUE MANAGEMENT	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National Land Transport Fund	0	444	444
Contract services	45,886	48,943	48,441
Third party revenue	12,135	12,001	12,491
Total revenue	58,021	61,388	61,376
Costs and expenses	56,535	60,938	60,186
Output class net surplus (deficit)	1,486	450	1,190

Output class | Rail and sea freight

Description

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

Results sought

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

Delivery

This output class is delivered directly by approved organisations.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quantity
Number of currently funded activities	6	5	6
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quality
Forecast efficiency ratio (average for approved new activities)	Nil8	>1	>19

RAIL AND SEA FREIGHT	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National Land Transport Fund	2,000	2,000	2,000
Total revenue	2,000	2,000	2,000
Expenditure	371	1,500	94
Output class net surplus (deficit)	1,629	500	1,906

⁸ No activities reviewed 2005/06.
⁹ There is only one project in this category and it has a BCR of 99, which is the default value when the net cost saving of the project is infinite.

Output class | Transport demand management and walking and cycling

Description

Under this output class Land Transport NZ will co-fund 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.

Results sought

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.

Delivery

This output class is delivered by approved organisations.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Number of school travel plans funded	55	120	8610
Number of work place travel plans funded	41	80	3111
Length of new walkway/cycleway funded (km)	36.7	120	106
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quality
Forecast benefit/cost ratio (average for approved new activities)	2.1	>1	3.312

TRANSPORT DEMAND MANAGEMENT AND WALKING AND CYCLING	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National Land Transport Fund	10,042	19,801	19,801
Total revenue	10,042	19,801	19,801
Expenditure	8,216	18,550	8,884
Output class net surplus (deficit)	1,826	1,251	10,917

¹⁰ Fewer than expected school travel plan funding requests were received this year. It should be noted that the total school population impacted by school travel plans is ahead of target in the Auckland area.
¹¹ There were fewer than expected funding requests for workplace travel plans this year.
¹² Excludes projects which reduce ongoing maintenance and renewal costs.

Output class | Passenger transport services

Description

Under this output class Land Transport NZ will co-fund with regional authorities non-commercial road, rail and ferry infrastructure and services.

Results sought

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.

Delivery

This output class is delivered by regional authorities.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quantity
Total boardings on buses (million)	89.9	101	89.7
Total boardings on ferries (million)	4.2	4.2	4.2
Total boardings on rail (million)	16.3	17	16.9
Total mobility boardings (million)	1.9	1.8	1.7
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quality
User satisfaction, as measured by the percentage of users who rate passenger transport services as good or better by an annual independent survey	88%	≥75%	85%
User satisfaction, as measured by the percentage of users who rate total mobility services as good or better by an annual independent survey	90%	≥75%	98%
Land Transport NZ subsidy per passenger boarding on buses	$1.05	$0.93	$1.19
Land Transport NZ subsidy per passenger boarding on ferries	$1.55	$0.4613	$2.03
Land Transport NZ subsidy per passenger boarding on rail	$2.02	$2.66	$1.94

PASSENGER TRANSPORT SERVICES	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National Land Transport Fund	189,000	235,753	235,753
Total revenue	189,000	235,753	235,753
Expenditure	211,789	270,920	222,08914
Output class net surplus (deficit)	-22,789	-35,167	13,664

¹³ The original estimate in 2005/06 at $0.46 per passenger boarding was set too low. This figure will need to be revised upwards for future years.
¹⁴ Underexpenditure in passenger transport due to some Wellington rail projects being insufficiently developed to the stage where funding applications could be made.

Output class | Regional land transport

Description

Under this output Land Transport NZ will fund regional priority land transport activities.

This output class is funded through regional funds generated from increases in petrol excise and light vehicle road user charges.

Delivery

This output class is delivered by approved organisations.

Results sought

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 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quantity
Percentage of funds allocated to output classes:
> transport demand management, walking and cycling	4%	10%	5.8%15
> passenger transport services	40%	26%	9.6%15
> new and improved state highways	Nil	48%	54.2%15
> new and improved local roads	56%	16%	30.4%15
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quality
Note: Specifics of performance reported within other output classes

REGIONAL LAND TRANSPORT	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National Land Transport Fund	201,000	205,500	205,500
Total revenue	201,000	205,500	205,500
Expenditure	6,104	60,960	19,78416
Output class net surplus (deficit)	194,896	144,540	185,716

¹⁵ This figure is a percentage of actual 2006/07 expenditure in this output class, not a percentage of the budgeted estimate for 2006/07.
¹⁶ The full budgeted estimate for 2006/07 was not allocated because fewer than expected applications were received from approved organisations.

Output class | Auckland land transport

Description

Under this output class, Land Transport NZ will fund activities that support the increased integration of transport and land use in the Auckland region.

This output class is funded by the Crown through specific allocation to the Auckland region.

Results sought

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 roads

Delivery

This output class is delivered by approved organisations.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quantity
Percentage of funds allocated to output classes:
> transport demand management, walking and cycling	Nil	Nil	Nil
> passenger transport services	100%	100%	100%17
> new and improved state highways	Nil	Nil	Nil
> new and improved local roads	Nil	Nil	Nil
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quality
Note: Specifics of performance reported within other output classes

AUCKLAND LAND TRANSPORT	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – annual	50,667	50,000	20,550
Total revenue	50,667	50,000	20,550
Expenditure	4,947	20,550	7,99018
Output class net surplus (deficit)	45,720	29,450	12,560

¹⁷ This figure is a percentage of actual 2006/07 expenditure in this output class, not a percentage of the budgeted estimate for 2006/07.
¹⁸ The full budgeted expenditure for 2006/07 was not allocated as fewer than expected applications were received from the Auckland region.

Output class | Wellington land transport

Description

Under this output class, Land Transport NZ will fund activities that retain passenger transport mode share, address congestion and improve access to the Wellington region.

This output class is funded by the Crown through specific allocation to the Wellington region.

Results sought

Progress towards a safer, more integrated, responsive and sustainable land transport system in Wellington, through 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 roads.

Delivery

This output class is delivered by approved organisations.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quantity
Percentage of funds allocated to output classes:
> transport demand management, walking and cycling	100%	13%	13%19
> passenger transport services	Nil	42%	87%19
> new and improved state highways	Nil	30%	Nil20
> new and improved local roads	Nil	15%	Nil20
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quality
Note: Specifics of performance reported within other output classes

WELLINGTON LAND TRANSPORT	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – annual	9,889	15,000	12,010
Total revenue	9,889	15,000	12,010
Expenditure	93	12,010	6221
Output class net surplus (deficit)	9,796	2,990	11,948

¹⁹ This figure is a percentage of actual 2006/07 expenditure in this output class, not a percentage of the full budgeted estimate for 2006/07.
²⁰ No funding requests received for state highways or local roads in the Wellington region for this output class.
²¹ The full budgeted estimate for 2006/07 was not allocated because fewer than expected applications were received from the Wellington region.

Output class | Bay of Plenty land transport

Description

Under this output class, Land Transport NZ will fund activities that address strategic transport issues in the Bay of Plenty region.

This output class is funded by the Crown through specific allocation to the Bay of Plenty region.

Results sought

Progress towards a safer, more integrated, responsive and sustainable land transport system in the Bay of Plenty region.

Delivery

This output class is delivered by approved organisations.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quantity
Percentage of funds allocated to output classes:	New
> transport demand management, walking and cycling		Nil	Nil
> passenger transport services		Nil	Nil
> new and improved state highways		50%	100%22
> new and improved local roads		50%	Nil23
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE 2006/07	ACTUAL 2006/07
Quality
Note: Specifics of performance reported within other output classes

BAY OF PLENTY LAND TRANSPORT	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – annual	0	55,000	55,000
Total revenue	0	55,000	55,000
Expenditure
Transport strategy	0	5,000	0
Tauranga harbour link project	0	50,000	29,367
Total expenditure	0	55,000	29,367
Output class net surplus (deficit)	0	0	25,633

²² This figure is a percentage of actual 2006/07 expenditure in this output class, not a percentage of the full budgeted estimate for 2006/07.
²³ No requests for funding received for local roads in the Bay of Plenty region for this output class.

Output class | New and improved infrastructure for state highways

Description

Under this capital appropriation Land Transport NZ will fund state highway capital improvements.

Results sought

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

Delivery

This output class is delivered by Transit.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quantity
Delivery of a state highway improvement programme24	New	1	1
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quality
Cost of new urban roads ($/m2 of new road)	$2,800/m2–$4,000/m2	(steady)	$1,75025
Cost of new rural roads ($/m2 of new road)	$200/m2–$500/m2	(steady)	Nil26
Forecast benefit/cost ratio (average for approved activities)	4.0	≥4	3.727

NEW AND IMPROVED INFRASTRUCTURE FOR STATE HIGHWAYS	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – annual	498	225,222	225,222
Crown – National Land Transport Fund	420,812	525,255	543,698
Third party revenue	14,222	10,000	10,881
Total revenue	435,532	760,477	779,801
Expenditure	702,047	762,470	750,124
Output class net surplus (deficit)	-266,515	-1,993	29,667

²⁴ The details of the approved activities are contained in the National Land Transport Programme published in June 2006.
²⁵ Only one new urban road project reached substantial completion during the year.
²⁶ There were no new rural road projects that reached substantial completion during the year.
²⁷ Excludes projects which reduce ongoing maintenance and renewal costs.

Output class | Maintenance of state highways

Description

Under this output class Land Transport NZ will fund the routine and periodic maintenance of state highways.

Results sought

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

Delivery

This output class is delivered by Transit.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quantity
Delivery of a state highway maintenance programme28	New	1	1
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quality
Cost of routine and periodic maintenance per network-km is within policy parameters set by Land Transport NZ	New	Yes	Yes
Cost of routine maintenance per lane-km29	$19.4	(steady)	$18.8
Cost of periodic maintenance per lane-km29	$13.6	(steady)	$15.3

MAINTENANCE OF STATE HIGHWAYS	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National Land Transport Fund	181,260	197,553	197,553
Total revenue	181,260	197,553	197,553
Expenditure	209,035	173,130	217,686
Output class net surplus (deficit)	-27,775	24,423	-20,133

²⁸ The details of the approved activities are contained in the National Land Transport Programme published in June 2006.
²⁹ The figures reported for 2005/06 and 2006/07 are measured in network metres, not lane-kms as the performance measure states.

Output class | New and improved infrastructure for local roads

Description

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

Results sought

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

Delivery

This output class is delivered by territorial local authorities and approved public organisations.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quantity
Delivery of a local road improvement programme30	New	1	1
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quality
Cost of new urban roads ($/m2 of new road)	$40 to $265	(steady)	$1,75031
Cost of new rural roads ($/m2 of new road)	$20 to $175	(steady)	Nil32
Forecast benefit/cost ratio (average for approved activities)	4.2	≥4	4.233

NEW AND IMPROVED INFRASTRUCTURE FOR LOCAL ROADS	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National Land Transport Fund	295,820	314,549	314,549
Total revenue	295,820	314,549	314,549
Expenditure	281,012	436,360	298,12834
Output class net surplus (deficit)	14,808	-121,811	16,421

³⁰ The details of the approved activities are contained in the National Land Transport Programme published in June 2006.
³¹ There was only one new urban road project that reached substantial completion during the 2006/07 year.
³² There were no new rural road projects that reached substantial completion during the 2006/07 year.
³³ Excludes projects that reduce ongoing maintenance and renewal costs.
³⁴ Underexpenditure due to fewer than expected funding requests being received from territorial authorities compared with what was indicated in their forward programmes.

Output class | Maintenance of local roads

Description

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

Results sought

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

Delivery

This output class is delivered by territorial local authorities and approved public organisations.

PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quantity
Delivery of a local road maintenance programme35	New	1	1
PERFORMANCE MEASURE	ACTUAL 2005/06	ESTIMATE/ TARGET 2006/07	ACTUAL 2006/07
Quality
Cost of routine and periodic maintenance per network-km is within policy parameters set by Land Transport NZ	New	Yes	Yes
Cost of routine maintenance per lane-km36	$2.6	(steady)	$2.1
Cost of periodic maintenance per lane-km36	$1.8	(steady)	$2.0

MAINTENANCE OF LOCAL ROADS	ACTUAL 2005/06 $000	BUDGET 2006/07 $000	ACTUAL 2006/07 $000
Revenue
Crown – National Land Transport Fund	162,180	171,911	171,911
Total revenue	162,180	171,911	171,911
Expenditure	225,401	175,990	224,14237
Output class net surplus (deficit)	-63,221	-4,079	-52,231

³⁵ The details of the approved activities are contained in the National Land Transport Programme published in June 2006.
³⁶ The figures reported for 2005/06 and 2006/07 are measured in network metres, not lane-kms as the performance measure states.
³⁷ Overexpenditure entirely in emergency work activity. This is always difficult to budget for as expenditure cannot be programmed and is dependent on the occurrence of random storm events.

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Page created: 14 November 2007