Launch of 2007/08 National Land Transport Programme
Transport Minister Annette King celebrates record investment in land transport infrastructure and services at the announcement of the annual National Land Transport Programme.
---------------------------------
One of the most eagerly anticipated events in the transport calendar each year is the announcement of the annual National Land Transport Programme, and I am very pleased to be part of this event for the second time.
When I was present at the announcement of the 2006/07 programme, I was certainly not experienced in transport matters, having been Transport Minister for a couple of months. In fact, it could be said that at that time I was still busy learning my acronyms, although I already knew that NLTP was one of the most important.
I feel much more at ease in the portfolio talking to you at the 2007/08 announcement, and in a few moments I want to step back a little in time, and talk to you about just some of the things that have been achieved or initiated during the past 12 months.
When I sat down with staff and we began listing what's happened, it was reinforced for me just how dynamic the transport portfolio is.
But before I talk about what's happened in the past 12 months, I want to thank the Acting Chair of the Land Transport New Zealand board, Paul Fitzharris, for overseeing the 2007/08 NLTP process, and Land Transport Chief Executive Wayne Donnelly and his leadership team for leading the process.
I also want to acknowledge the contribution of former chair Jan Wright, and I wish her well in her new position as Parliamentary Commissioner for the Environment.
Thank you also to the partnerships and programmes team at Land Transport New Zealand who have worked so hard in putting together the NLTP and who also ensure its delivery throughout the year.
And thank you to local government for working so closely with Land Transport New Zealand to develop the Programme. It is good to see a number of mayors here today, as well as members of regional land transport committees. I also want to welcome parliamentary colleagues who are here today.
The 2007/08 NLTP allocates a total of $2.4 billion across 12 activity classes. This represents a record level of expenditure through the NLTP, and an increase of 3.8 percent from last year.
From government investment in land transport through the programme we are getting safer, more sustainable transport. We are getting transport solutions that are world-class and that help strengthen our economy, and that meet a wide variety of needs.
Because of the amount of money we are investing --- and I repeat it is $2.4 billion in the new programme --- it is critical that we get value for money, and this is the first area I want to talk about when I discuss what has happened in the past 12 months.
As you know, we've had a number of reviews focussing on how to ensure value for money from our land transport investment. The most recent, the Next Steps review of the land transport sector, focused its recommendations on changes to the funding and planning of land transport, and on merging Land Transport New Zealand and Transit, to create one new organisation accountable to one board.
This new entity will enable us to get better value for money and a more appropriate balance of land transport activities, and it will, I am sure, help us meet objectives in the New Zealand Transport Strategy.
I know that people in Land Transport and Transit have the skills we need in the new Crown Entity, and I thank you in advance for working together to seek ways to deliver integrated transport solutions. Implementation of Next Steps will improve the government land transport sector's performance, and impact favourably on the economy and environment. Legislation should be introduced later this year, with the new entity in place by the middle of next year.
The face of land transport in New Zealand has changed in a number of other ways in the past 12 months, and it's worth recalling just some of them, in no particular order of importance.
. There have been a number of significant openings, including the Mercer to Longswamp section of the Waikato Expressway; the Panmure Transport Interchange; the MacKay's Crossing overbridge; and the very significant Esmonde Road interchange.
. Officials from the Ministry, Maritime New Zealand and Land Transport New Zealand are meeting key stakeholders to discuss issues that should be covered in a discussion document on coastal shipping and sea freight. I expect a draft strategy to be released for public consultation by the end of October.
. The Government plans to introduce PT procurement legislation to enable regional councils to provide better local public transport. Specific provisions to enable integration of services, ticketing and fares across a region are included in this Bill.
. We have made considerable progress in looking at making regionally distributed or R funding more flexible. Land Transport New Zealand, with my full support, is looking at using some of the R funds available to assist territorial authorities with their road renewal programmes. I know how important road renewals are to the work of territorial authorities and in ensuring that we maintain an effective land transport network. I look forward to announcing the full details of this initiative in the near future.
. In December we launched an initiative aimed at reducing speed around schools to provide children with more protection.
. Public consultation has begun on changes to the 2007 Vehicle Exhaust Emissions Rule that aims to improve air quality and public health. The proposed changes will tighten current emissions standards for all used vehicles imported into New Zealand after January 2008.
. There are now 330 walking school buses in about 120 schools across the country with more than 4000 registered users.
. In May I attended the signing of a contract for 60 new trolley buses in Wellington. The contract is the result of successful collaboration of local government, central government and the private sector to safeguard Wellington's iconic trolley buses.
. In December I released a Road Safety Policy statement proposing legislation to make a roadside impairment test compulsory, where drug impaired driving is suspected. We are also finalising a package of measures addressing other road safety issues, such as reducing risks to young drivers, intersection risks and running of red lights.
. Some 460 submissions were received on proposed changes to a vehicle equipment rule to reduce excessively noisy vehicles on our roads.
. As part of the drive to increase environmental and economic sustainability, the Biofuels Sales Obligation has been developed.
. In December the Cabinet agreed to increase the flexibility of part of the $885 million Crown funding package for Wellington, allowing an increased proportion to be used by the region to assist with the local share of costs for new rail infrastructure.
. Ten full-time enforcement officers are now working to improve standards in the industry and to ensure the safety and security of passengers.
. Transport Safety Minister Harry Duynhoven has developed policy to restrict access to the New Zealand Motor Vehicle Register.
. And the last issue I will mention is that the Government is introducing a mandatory new whole of vehicle marking system for all new and used vehicles imported into the country in an effort to reduce thefts and catch criminals who steal cars.
That's some of what we've all been doing over the past 12 months, and we will continue to be innovative and creative over the next year.
One of the key enablers of the Government's vision of economic transformation is developing world-class infrastructure, and an integral part of this is transport.
Budget 2006 saw an unprecedented funding injection for transport infrastructure, and last month, in Budget 2007, I announced a number of new initiatives that I believe will further strengthen our transport infrastructure.
These include investigation of full hypothecation of all current fuel tax revenues to the National Land Transport Fund. This would mean that the Crown would no longer retain any revenue from the sale of petrol for general government revenue and would ensure that every cent of excise duty collected from motorists is used for land transport purposes, including public transport.
Budget 2007 also paved the way for regional fuel taxes. The Government announced legislation would be introduced to enable a regional fuel tax for specific transport capital projects that might not otherwise attract funding within the desired timeframe. The first region to benefit is likely to be Auckland, where a 10 cents a litre regional fuel tax on petrol and diesel could raise about $120 million a year and could support a debt of about $1.5 billion over 30 years.
The advantages for a region like Auckland are immense, and we expect a number of Auckland's transport priorities, including the Western Ring Route, Penlink and various public transport initiatives, could directly benefit from a regional fuel tax.
But the main project that will reap the rewards is the electrification of the Auckland rail network. The whole project will cost more than $1 billion, with the Auckland Regional Council being responsible for funding the electric trains, while the Government through Ontrack will be responsible for power supplies and wires.
The council can access funding for the project from the proposed regional fuel tax, and the Government will raise infrastructure bonds to pay its share, with the fuel tax servicing the interest costs. The aim is to have electrification completed by 2013.
We need to get electrification right for a first-class public transport network in Auckland. Electrification will mean faster, more reliable, cleaner, more comfortable and quieter services. An electrified urban railway will enable achievement of growth targets in the next 10 years, and future-proof longer term expansion of a rapid transit network, as Auckland's population continues to grow towards two million.
The Government is also providing funding to upgrade previously neglected rail infrastructure in Wellington. This is in addition to existing government funding which has already helped the region buy new rolling stock and improve the network. Budget 2007 provided $600 million over six years for the government's contribution to these urban rail development projects in Auckland and Wellington.
I am pleased to see sustainable transport solutions feature throughout the NLTP again. Funding for passenger transport services is expected to increase by 75 percent over the next ten years. The number of walking and cycling projects continue to grow.
It is expected, in fact, that allocations for walking and cycling will double over the next ten years to reach $28 million. But the actual investment in "active" modes of transport is even greater than that, with local authorities and Transit increasingly incorporating walking and cycling facilities into their roading improvement works, meaning those modes are becoming a standard part of transport planning.
Part of the NLTP is the "Road Policing Programme" which provides funding for the New Zealand Police in respect of road policing. The Road Policing Programme features a number of new initiatives this year that are strongly aligned with the Road Safety to 2010 Strategy.
We must remember, however, that reducing the road toll is not only the responsibility of central government and its agencies. It also involves local government, communities and individuals. The focus needs to be on personal responsibility and the role that individuals can play in making the road network a safer place for all road users.
Thank you again to those at Land Transport New Zealand who work so hard at balancing national and regional priorities to produce the NLTP each year. I am confident that this year's programme will enable an integrated transport system that is responsive to community needs around New Zealand.
---------------------------------
One of the most eagerly anticipated events in the transport calendar each year is the announcement of the annual National Land Transport Programme, and I am very pleased to be part of this event for the second time.
When I was present at the announcement of the 2006/07 programme, I was certainly not experienced in transport matters, having been Transport Minister for a couple of months. In fact, it could be said that at that time I was still busy learning my acronyms, although I already knew that NLTP was one of the most important.
I feel much more at ease in the portfolio talking to you at the 2007/08 announcement, and in a few moments I want to step back a little in time, and talk to you about just some of the things that have been achieved or initiated during the past 12 months.
When I sat down with staff and we began listing what's happened, it was reinforced for me just how dynamic the transport portfolio is.
But before I talk about what's happened in the past 12 months, I want to thank the Acting Chair of the Land Transport New Zealand board, Paul Fitzharris, for overseeing the 2007/08 NLTP process, and Land Transport Chief Executive Wayne Donnelly and his leadership team for leading the process.
I also want to acknowledge the contribution of former chair Jan Wright, and I wish her well in her new position as Parliamentary Commissioner for the Environment.
Thank you also to the partnerships and programmes team at Land Transport New Zealand who have worked so hard in putting together the NLTP and who also ensure its delivery throughout the year.
And thank you to local government for working so closely with Land Transport New Zealand to develop the Programme. It is good to see a number of mayors here today, as well as members of regional land transport committees. I also want to welcome parliamentary colleagues who are here today.
The 2007/08 NLTP allocates a total of $2.4 billion across 12 activity classes. This represents a record level of expenditure through the NLTP, and an increase of 3.8 percent from last year.
From government investment in land transport through the programme we are getting safer, more sustainable transport. We are getting transport solutions that are world-class and that help strengthen our economy, and that meet a wide variety of needs.
Because of the amount of money we are investing --- and I repeat it is $2.4 billion in the new programme --- it is critical that we get value for money, and this is the first area I want to talk about when I discuss what has happened in the past 12 months.
As you know, we've had a number of reviews focussing on how to ensure value for money from our land transport investment. The most recent, the Next Steps review of the land transport sector, focused its recommendations on changes to the funding and planning of land transport, and on merging Land Transport New Zealand and Transit, to create one new organisation accountable to one board.
This new entity will enable us to get better value for money and a more appropriate balance of land transport activities, and it will, I am sure, help us meet objectives in the New Zealand Transport Strategy.
I know that people in Land Transport and Transit have the skills we need in the new Crown Entity, and I thank you in advance for working together to seek ways to deliver integrated transport solutions. Implementation of Next Steps will improve the government land transport sector's performance, and impact favourably on the economy and environment. Legislation should be introduced later this year, with the new entity in place by the middle of next year.
The face of land transport in New Zealand has changed in a number of other ways in the past 12 months, and it's worth recalling just some of them, in no particular order of importance.
. There have been a number of significant openings, including the Mercer to Longswamp section of the Waikato Expressway; the Panmure Transport Interchange; the MacKay's Crossing overbridge; and the very significant Esmonde Road interchange.
. Officials from the Ministry, Maritime New Zealand and Land Transport New Zealand are meeting key stakeholders to discuss issues that should be covered in a discussion document on coastal shipping and sea freight. I expect a draft strategy to be released for public consultation by the end of October.
. The Government plans to introduce PT procurement legislation to enable regional councils to provide better local public transport. Specific provisions to enable integration of services, ticketing and fares across a region are included in this Bill.
. We have made considerable progress in looking at making regionally distributed or R funding more flexible. Land Transport New Zealand, with my full support, is looking at using some of the R funds available to assist territorial authorities with their road renewal programmes. I know how important road renewals are to the work of territorial authorities and in ensuring that we maintain an effective land transport network. I look forward to announcing the full details of this initiative in the near future.
. In December we launched an initiative aimed at reducing speed around schools to provide children with more protection.
. Public consultation has begun on changes to the 2007 Vehicle Exhaust Emissions Rule that aims to improve air quality and public health. The proposed changes will tighten current emissions standards for all used vehicles imported into New Zealand after January 2008.
. There are now 330 walking school buses in about 120 schools across the country with more than 4000 registered users.
. In May I attended the signing of a contract for 60 new trolley buses in Wellington. The contract is the result of successful collaboration of local government, central government and the private sector to safeguard Wellington's iconic trolley buses.
. In December I released a Road Safety Policy statement proposing legislation to make a roadside impairment test compulsory, where drug impaired driving is suspected. We are also finalising a package of measures addressing other road safety issues, such as reducing risks to young drivers, intersection risks and running of red lights.
. Some 460 submissions were received on proposed changes to a vehicle equipment rule to reduce excessively noisy vehicles on our roads.
. As part of the drive to increase environmental and economic sustainability, the Biofuels Sales Obligation has been developed.
. In December the Cabinet agreed to increase the flexibility of part of the $885 million Crown funding package for Wellington, allowing an increased proportion to be used by the region to assist with the local share of costs for new rail infrastructure.
. Ten full-time enforcement officers are now working to improve standards in the industry and to ensure the safety and security of passengers.
. Transport Safety Minister Harry Duynhoven has developed policy to restrict access to the New Zealand Motor Vehicle Register.
. And the last issue I will mention is that the Government is introducing a mandatory new whole of vehicle marking system for all new and used vehicles imported into the country in an effort to reduce thefts and catch criminals who steal cars.
That's some of what we've all been doing over the past 12 months, and we will continue to be innovative and creative over the next year.
One of the key enablers of the Government's vision of economic transformation is developing world-class infrastructure, and an integral part of this is transport.
Budget 2006 saw an unprecedented funding injection for transport infrastructure, and last month, in Budget 2007, I announced a number of new initiatives that I believe will further strengthen our transport infrastructure.
These include investigation of full hypothecation of all current fuel tax revenues to the National Land Transport Fund. This would mean that the Crown would no longer retain any revenue from the sale of petrol for general government revenue and would ensure that every cent of excise duty collected from motorists is used for land transport purposes, including public transport.
Budget 2007 also paved the way for regional fuel taxes. The Government announced legislation would be introduced to enable a regional fuel tax for specific transport capital projects that might not otherwise attract funding within the desired timeframe. The first region to benefit is likely to be Auckland, where a 10 cents a litre regional fuel tax on petrol and diesel could raise about $120 million a year and could support a debt of about $1.5 billion over 30 years.
The advantages for a region like Auckland are immense, and we expect a number of Auckland's transport priorities, including the Western Ring Route, Penlink and various public transport initiatives, could directly benefit from a regional fuel tax.
But the main project that will reap the rewards is the electrification of the Auckland rail network. The whole project will cost more than $1 billion, with the Auckland Regional Council being responsible for funding the electric trains, while the Government through Ontrack will be responsible for power supplies and wires.
The council can access funding for the project from the proposed regional fuel tax, and the Government will raise infrastructure bonds to pay its share, with the fuel tax servicing the interest costs. The aim is to have electrification completed by 2013.
We need to get electrification right for a first-class public transport network in Auckland. Electrification will mean faster, more reliable, cleaner, more comfortable and quieter services. An electrified urban railway will enable achievement of growth targets in the next 10 years, and future-proof longer term expansion of a rapid transit network, as Auckland's population continues to grow towards two million.
The Government is also providing funding to upgrade previously neglected rail infrastructure in Wellington. This is in addition to existing government funding which has already helped the region buy new rolling stock and improve the network. Budget 2007 provided $600 million over six years for the government's contribution to these urban rail development projects in Auckland and Wellington.
I am pleased to see sustainable transport solutions feature throughout the NLTP again. Funding for passenger transport services is expected to increase by 75 percent over the next ten years. The number of walking and cycling projects continue to grow.
It is expected, in fact, that allocations for walking and cycling will double over the next ten years to reach $28 million. But the actual investment in "active" modes of transport is even greater than that, with local authorities and Transit increasingly incorporating walking and cycling facilities into their roading improvement works, meaning those modes are becoming a standard part of transport planning.
Part of the NLTP is the "Road Policing Programme" which provides funding for the New Zealand Police in respect of road policing. The Road Policing Programme features a number of new initiatives this year that are strongly aligned with the Road Safety to 2010 Strategy.
We must remember, however, that reducing the road toll is not only the responsibility of central government and its agencies. It also involves local government, communities and individuals. The focus needs to be on personal responsibility and the role that individuals can play in making the road network a safer place for all road users.
Thank you again to those at Land Transport New Zealand who work so hard at balancing national and regional priorities to produce the NLTP each year. I am confident that this year's programme will enable an integrated transport system that is responsive to community needs around New Zealand.