Public Transport Operating Model Te Tauira Whakahaere mō ngā Waka Tūmatanui

The Ministry of Transport completed a review of PTOM to understand how was working and whether it can be improved.

We published a discussion paper to seek  feedback from the sector and the public to ensure we identified the relevant issues and opportunities as part of our review, and to inform how we design any changes to PTOM.

We also ran engagement sessions in Auckland, Wellington, and virtually as part of public consultation on the PTOM review. Following submissions analysis we also undertook further engagement with key sector stakeholders to refine policy options.

The Minister of Transport commissioned a review of PTOM to assess whether it had met the original objectives and whether it remains fit for purpose to support the Government’s objectives. The review will include 2 stages: an Impact Evaluation, and a Policy and Legislative Review. The timing of the review was delayed by the impacts of COVID-19 on the public transport sector and we anticipate it will now be completed in 2021.

In May 2018 we commissioned research into what impacts PTOM had on bus driver employment conditions and wage rates. The research found PTOM had resulted in a more competitive market for operators tendering for contracts and its impacts on bus drivers’ employment conditions and wage rates varied by region, and largely depended on whether bus drivers remained with the same operator, moved to a new operator, left or entered the industry.

Bus drivers’ employment conditions and wage rates were directly impacted by changes in the contracting and operating environment. Most operators kept their employment conditions the same, with small increases in wage rates, although they varied considerably between current and new operators.

We initiated a second stage of research to look at the exact impacts on the wages and conditions of bus drivers who changed their role after the public transport tendering processes came into effect. However, this second stage of research was not ultimately progressed because the information required for the analysis was not provided by bus operators.

In July 2019 the research report and supplementary information were released.

New legislation to plan, procure, operate and manage local public transport services through PTOM was established in the Land Transport Management Amendment Act 2013.

To achieve this, the Public Transport Management Act 2008 was repealed. Its provisions and PTOM were then incorporated into the amended Land Transport Management Act.

The Land Transport Management Amendment Act came into effect on 13 June 2013, and PTOM provisions led to a new round of bus service procurement in most regions between 2015 and 2017.

Land Transport Management Amendment Act 2013(external link)

Cabinet approved the introduction of a new framework to allow regional councils and public transport operators to develop a public-private partnership to improve delivery of public transport services through collaborative planning and investment.

Implementing the new model would provide better value for money, and act as an incentive for the private sector to invest and improve how regional councils designed public transport networks.

Legislative change would be required to put PTOM in place as public transport services were regulated under the Public Transport Management Act 2008.

The Minister of Transport decided to review the Public Transport Management Act 2008 (PTMA) and develop a policy to increase the use of urban bus and ferry services, and decrease their reliance on government funding.

The Minister’s decision to review the PTMA reflected the Government’s concern that it gave regional councils too much control over bus and ferry operators, and did not encourage private sector investment or innovation.

We led the development of PTOM in collaboration with Waka Kotahi NZ Transport Agency, Auckland Transport, Greater Wellington Regional Council, Environment Canterbury, the Bus and Coach Association and representatives from other operators.

PTOM focused on developing a robust operating environment to deliver urban bus and ferry services. Central to the development was designing efficient public transport networks, and rebuilding relationships between regional councils and operators to provide the basis for genuine partnership.

We commissioned an assessment of how PTOM would impact competition — a competition assessment. This identified how PTOM would influence the procurement and delivery of urban bus and ferry services, and what it might mean for New Zealanders’ welfare.