Three-year National Land Transport Programme (2009-12)

NLTP - Key messages and questions & answers for RTCs, RAGS and AOs

Key messages

1. The government has signalled a change of priorities, which may impact on the prioritisation of some draft regional land transport programmes (RLTP). The NZ Transport Agency (NZTA) does not think these changes will require radical changes to RLTPs before their approval by regional councils (or ARTA in Auckland).
2. The NZTA will assist each RTC to update its draft RLTP to ensure it is consistent with the amended GPS, released on 19 May 2009.
3. The Ministry of Transport (MoT) acknowledged at the start of the process to develop New Zealand’s first three-year National Land Transport Programme (NLTP) that the first three years won't be ‘perfect’. However, a lot has already been achieved by all through robust collaboration between approved organisations and with the NZTA, and the NZTA’s support to the process.
4. The NZTA has been supporting approved organisations over the past nine months with the development of their three year regional land transport programmes by developing manuals and guidelines, presenting at workshops and offering personal assistance. This type of support will continue while all parties work through the impacts of the latest changes announced by the government and the revised Government Policy Statement (GPS). The support will be in response to needs at the time.

Questions/issues approved organisations (AOs) and NZTA regions are seeking guidance on

The Q&As below have been grouped as follows:

• New questions and answers
• New questions and answers pertaining to issues raised in LGNZ’s submission to the Minister of Transport
• Amendments to previously developed questions and answers
• Previously developed questions and answers

New questions and answers

1.   What are the key changes in the amended GPS?

The government's priority is to achieve economic growth and productivity in New Zealand. The GPS requires the NZTA to ensure that the use of land transport funding supports this goal. This will mean investing in high quality infrastructure projects that support efficient movement of freight and people. There will be a particular focus on the State highway network, which is critical to the efficient movement of freight and people. There will also be a strong emphasis on value for money, and the economic efficiency of projects.

2.   How has government signalled in the GPS the impacts it wishes to achieve from land transport through funding from the National Land Transport Fund (NLTF)?

The amended GPS replaces the outcome targets in the previous GPS with a list of impacts that the government wishes to achieve.

The short to medium-term impacts in the GPS are split into:

• Impacts that contribute to economic growth and productivity
  • Improvements in the provision of infrastructure and services that enhance transport efficiency and lower the cost of transportation through:
    • Improvements in journey time reliability
    • Easing of severe congestion
    • More efficient freight supply chains
    • Better use of existing transport capacity
  • Better access to markets, employment and areas that contribute to economic growth
  • A secure and resilient transport network
• Other impacts
  • Reductions in deaths and serious injuries as a result of road crashes
  • More transport choices, particularly for those with limited access to a car where appropriate
  • Reductions in adverse environmental effects from land transport
  • Contributions to positive health outcomes

3.   What does the amended GPS mean for assessment and prioritisation?

The NZTA has identified that most of the proposed transport priorities are contained within the existing assessment framework. One change is the replacement of the ‘seriousness and urgency’ factor with ‘strategic fit’. This signals a move to a more opportunities focused approach, and it is proposed that priority be given to the GPS impacts through the ‘strategic fit’ factor.

4.   How will greater emphasis be placed on economic efficiency?

During the prioritisation process, the NZTA will place the greatest weight on ‘strategic fit’, followed by ‘economic efficiency’ and then ‘effectiveness’. The assessment framework under the new transport priorities will continue to use the benefit cost ratio as the primary measure of economic efficiency. For improvement projects, this means that the ‘benefit cost ratio’ within the ‘economic efficiency’ will play a greater role in prioritising projects. The NZTA is proposing that the prioritisation places greater weight on the economic efficiency factor.

5.   What will the NZTA’s revised assessment criteria mean for draft RLTPs?

Where the transport priorities in RLTPs are consistent with the new GPS we do not think there will be much change to the relative priorities given to activities in a RLTP. However there may be a need to reconsider the allocation of R funds to activities.

6.   How will Roads of National Significance (RONs) be assessed?

The NZTA proposes to assess RONs in a similar way to other improvement projects. The strategic fit assessment factor in the draft revised assessment framework has been amended to include roads of national significance as a criteria, amongst others.

7.   Can existing unspent funds be transferred into the next three-year cycle?

The GPS activity class ranges take into account both the surplus funds and the anticipated year end outcome for 2008/09. Any further unspent funds at year end will be available to the NZTA Board to allocate to activity classes in the following cycle, to best contribute to giving effect to the GPS. The Board may not necessarily allocate funds unspent in an activity class to the same activity class in the next period. However, the allocation to activity classes will need to be consistent with the funding ranges set out in the GPS.

8.   How will the NZTA respond to the amended GPS?

The NZTA will give effect to the GPS when finalising the NLTP, and this is work in progress. In terms of formal communication to the sector, the NZTA has sent out a letter to all RTCs and AOs to explain the key changes and impacts, and will publish updated Q&As on the NZTA website. Additionally, the NZTA’s regional offices will be available to provide further advice and support.

New questions and answers pertaining to issues raised in LGNZ’s submission to the Minister of Transport

1.   How much influence – if any – does the NZTA have over the decision to expand the number of RONs?

Advancing the existing RONs - rather than expanding their number to include other routes - is the priority within the first three-year NLTP. Decisions about the selection of RONs are solely the prerogative of the Minister of Transport. The NZTA is not currently pursuing the inclusion of any additional routes.

2.   Why can’t an activity class be created for RONs?

This issue was raised with the Minister of Transport, who confirmed that activity classes are set by him through the GPS, and he has not created a separate activity class for RONs in the amended GPS.

3.   Given the tight timeframes involved in the start-up to state highway projects, would the NZTA be able to deliver the required outputs within the timeframes envisaged?

The NZTA is confident that the required outputs will be delivered within the timeframes envisaged.

4.   How would the NZTA accelerate the procurement of transport activities?

The NZTA is investigating a range of procurement options to quickly deliver on transport projects to provide an economic stimulus.

5.   How will the NZTA achieve an overall balance within the NLTP?

The NZTA will be seeking to maximise the NLTP towards the proposed GPS impacts and will be operating within the activity class ranges set by the Minister.

6.   How will the transfer of Auckland and Wellington rail capital funding be effected?

The Minister has stated in a press release that the government’s railway investments will be made largely separate from the NLTF. The NZTA, Ministry of Transport and the Treasury department are currently working with the affected regions to determine the details around what will be funded and funding sources within the NLTP and outside the NLTP.

Amendments to previously developed questions and answers

1.   Will the R funding process be changing?

The R funding process has not changed as a result of the changes to the GPS. It is proposed that the amended GPS will not affect other funding policies.

2.   Will the NZTA allocate funding differently under new GPS?

The NZTA is developing a new process for assessing projects and prioritising funding so that it can give effect to the new GPS. This process will reflect the greater priority for roads of national significance, the priorities for transport and the greater emphasis on economic efficiency signalled in the GPS. A proposed investment strategy and revised assessment framework is being developed based on the amended GPS issued by the Minister. This framework will remain in draft form until the NLTP is finalised and will then be issued as an amendment to the PPFM.

3.   How will projects on roads of national significance (RONs) be funded from the NLTP?

RONs will be funded in a similar way to any other activity. To be considered for funding from the NLTP they will need to have been both included in an adopted RLTP and in the adopted NLTP. The NZTA board will need to be satisfied that all legislative requirements are met before funding is approved.

Previously developed questions and answers

1.   What do the changes mean for us as a region?

The government has signalled a change of priorities, which may impact on the prioritisation of some draft regional land transport programmes (RLTP). The NZTA does not think these changes will require radical changes to RLTPs during construction of the NLTP. The NZTA has been in contact with RTCs about the draft assessment and prioritisation framework so you are kept informed on the latest developments to consider the impact on your draft RLTP.

2.   What do the reductions in funding for some activity classes mean for us?

Most activity classes are at or above the expenditure levels expected in 2008/09 and inflation is not as great as was previously forecast, so there is not expected to be much need for a change in programmes because of the changes to the GPS. In the case of Auckland and Wellington’s passenger transport and rail infrastructure (e.g. railway stations, park and rides, etc) there will be a reduction based on the announcement around the activity classes in the GPS and the movement of funding outside of the NLTF.

3.   How can we confirm there is no need for radical change to draft RLTPs?

An RLTP is required to be consistent with the GPS. We think that by comparing the statement of transport priorities in each RLTP with the priorities for transport in the GPS and the draft NZTA assessment and prioritisation framework, each RTC will be able to confirm that their draft RLTP is consistent with the GPS and so not require radical change.

4.   Will we have to re-consult?

If the transport priorities in the RLTP are consistent with the priorities for transport in the GPS, and the programme of activities supports the delivery of those priorities, there should be no need to re-consult. However, as with any statutory consultation process, should the RTC change its final RLTP so much as to make the prior consultation process unfair, then it may need to re-consult whatever the reason for the change.

5.   What does it mean if we have to re-consult?

In the unlikely event that a RTC elects to re-consult on its draft RLTP the NZTA will work with the RTC to ensure that ongoing transport activities continue and will respond to changes, either by adjusting the potential NLTP if the RLTP is approved before the adoption of the NLTP, or by varying the NLTP at a later time.

6.   Can we pick up changes through a variation?

Each RTC can respond to changes submitted to it during the consultation period by amending the draft RLTP, and it can also vary its RLTP later. We think it best to consider proposed changes to the draft RLTP now, so that the final RLTP reflects anticipated transport activity in the region. Later changes to local road maintenance or minor capital works will proceed without involving the RTC (outside Auckland). The RTC will consider other proposals to vary its RLTP. Only when proposed changes are large in terms of the RTC’s significance policy will there be a need to consult on the proposed variation.

7.   What should happen now that a final RLTP has been lodged with the regional council (or ARTA) before the GPS was changed and the Regional Council (or ARTA) has not yet approved the final RLTP?

Regional councils (or ARTA) need to ensure that RLTPs approved by them are consistent with the GPS. They might consider the basis on which they proposed/finalised the RLTP. If they still believe it to be inconsistent, they may ask the RTC to amend the document. Legislation sets out the process the regional council (or ARTA) should follow should they decide not to adopt the RLTP.

8.   What are the legal implications around the RLTP timeframe going beyond 30 June?

In the unlikely event that a RLTP will not be approved or forwarded to the NZTA by 30 June the NZTA will work with the RTC to ensure that funding is available for continuing transport programmes. The NZTA will consider varying the NLTP in response to a RLTP received after the NLTP was adopted so that it can then fund new projects in that RLTP.

9.   Will the NZTA issue new regional GPS funding ranges?

The NZTA will not issue new regional funding ranges because there would be too little benefit from this. Any new ranges would be similar to the previously developed ranges and therefore not provide RTCs with additional information. The NZTA is developing feedback on activities which it will provide to RTCs and project proponents before they develop and adopt their final RLTP and LTCCPs.

10.   When will the final changes in the Planning Programming and Funding Manual (PPFM) be announced?

A proposed assessment framework is being developed based on the GPS issued by the Minister. The NZTA Board has considered the draft assessment framework at their May 29 meeting, and the NZTA is now working on amending the PPFM. An updated version will be issued as soon as is possible.

11.   Will roads of national significance be N funded?

The roads of national significance will be funded in much the same manner as previously forecast, as the Minister announced when signalling increases in funding for SH improvements within the GPS. Those projects that were indicatively funded from R or C funds will potentially still be funded from R or C funds when they are given funding approval by the NZTA in the future.

12.   How will the NZTA manage its dual role as funder and provider and remain impartial in both processes?

The NZTA, independent of its regional directors, will support the inclusion and prioritisation of SH projects on roads of national significance in each RLTP and the inclusion and prioritisation of activities delivered by other agencies relating to these roads. The NZTA will be proposing amendments to some activities in draft RLTPs to reflect greater progress expected as a result of the amended GPS, and in some cases also proposing the addition of new projects. These changes will only have an impact in Auckland, Manawatu/Wanganui, Wellington and Canterbury where the draft RLTPs don’t reflect all prospective projects on the roads of national significance.

13.   Will the NZTA be making variations to its activities that it proposed be included in each RLTP?

The NZTA has proposed minor amendments to its activities proposed for inclusion in each RLTP in a similar manner to approved organisations. These changes are generally small and expected to have no significant impact on developing the final RLTP.

Page created: 8 June 2009