Each output class has performance measures and standards/targets. Read about how the Ministry measured up against its targets in 2010/11.

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Output class: policy advice

Through this output class, the Ministry provides policy advice on the transport modes and other ministerial support services. This output class is supported by five outputs: road, rail, aviation, maritime and multi-modal.

Actual 2009/10Performance measuresActual 2010/11Standards/targets 2010/11
Partially achieved
90%
Key initiatives contained in the annual work programme are completed or progressed as agreed, or as subsequently amended by the agreement between the Minister and the Chief Executive. 98% Achieved, as per the annual work programme
Partially achieved
48%
Rules and regulations are developed as specified in the agreed annual rules programme. Achieved in accordance with re-negotiated timeframes Priority work as detailed in the work programme
Achieved Legislation development and issuing of drafting instructions as agreed with the Minister(s) for the relevant calendar year. Achieved Achieved
Not measured Policy advice will be delivered in accordance with the Policy Advice Quality Characteristics (refer conditions on use of appropriation) as determined through delivery recorded against the project plan. 100% 100%
Not measured Percentage of policy papers submitted to the annual survey of quality by NZIER that receive a score of 6.5 out of 10 or more. 70% 100%

While all of the Ministry’s policy advice papers are subject to peer review and assessment against quality characteristics, the Ministry considers that this only provides part of the picture of the quality of the Ministry’s policy advice. The Ministry utilises the NZIER to provide an external assessment and benchmark for the quality of our policy advice. The Ministry’s NZIER median score in 2011 was 7.0, up from 6.5 in 2008.

The Ministry’s annual work programme with the Minister is a ‘living’ document that is subject to change throughout the year in discussion with the Minister. Quarterly reports to the Minister identify new, deferred and cancelled projects. In addition, changes to milestones and time frames are agreed with the Minister through briefings and discussions on individual initiatives.

Operating intentions

The Ministry’s 2010–2013 Statement of Intent outlined its programme of planned actions for the period covered by this Annual Report.

The planned actions were separated by mode and a desired impact was provided. It is acknowledged that some of those impacts are long term in their nature, and the Ministry expects to be demonstrating their success by 2013 as indicated in the 2010-2013 Statement of Intent. This Annual Report has, where possible, recorded the deliverables against each of the planned actions. A progress update has been provided for initiatives that span more than the single reporting year that this report covers.

Output: Road

Actual 2009/10Performance measuresActual 2010/11Standards/targets 2010/11
New 2012-2015 Government Policy Statement on Land Transport Funding (GPS 2012) published by 30 June 2011 Not achieved Achieved
New First legislative programme for the Safer Journeys Strategy completed by 30 June 2011. Achieved Achieved
New Cost
This output is produced within appropriation (GST exclusive)
$7,367,354 $9,725,000

The Government Policy Statement on Land Transport Funding 2012/13–2021/22 was published in July 2011 and is for the period 2012–2015 (GPS 2012). The amended time frame was as agreed with the Minister. The GPS 2012 was largely completed by 30 June 2011; with policy development, initial Cabinet agreement on stakeholder engagement, and stakeholder engagement having been completed, and the final Cabinet paper having been prepared.

2010/11 Planned actionsDeliverables
Align policy on investment, planning and management of roads with the government’s desired outcomes.

Deliverables

Publication of the 2012-2015 Government Policy Statement on Land Transport Funding (GPS 2012) in mid-2011.

Contribution to the development of State highway classifications.

Impact sought

Increased efficiency of national and urban networds to enahnce economic activity, meet affordability needs of communities and use funds more efficiently.

Initiative

2012-2015 Government Policy Statement on Land Transport Funding: The Ministry led the development of the GPS 2012, which sets the outcomes and priorities for the investment of the National Land Transport Fund from 1 July 2012. The government released the GPS 2012 (including the NZTA and local authorities) and better align those decisions with the government's outcomes and priorities. The government is investing $36 billion through the National Land Transport Fund over the next 10 years, with a focus on projects supporting economic growth, value for money and road safety.

State Highway Classification System: The Ministry supported the NZTA with the development of a new State highway classification system to guide the long-term strategic direction of New Zealand's State highway network. The system categorises roads according to their function and sets a consistent and predictable level of service for each category. This can help drivers understand what to expect and how to behave on different categories of road. The NZTA adopted the classification system in June 2011.

Develop and implement land transport safety and security initiatives.

Deliverable

Development and implementation of action plans that deliver on Safer Journeys.

Impact sought

Reduced number of deaths and serious injuries as a result of road crashes.

Initiatives

Safer Journeys action plan: The Ministry coordinated the development of the Safer Journeys action plan across a number of agencies. The action plan was launched in May 2011 and assigns responsibility for more than 100 actions to a number of government agencies. Implementation of the actions will assist in reducing the number of deaths and serious injuries on our roads and improve our overall road safety.

Land Transport (Road Safety and Other Matters) Amendment Act 2011: The Ministry concluded a significant piece of policy work on a number of Safer Journeys initiatives when the Land Transport (Road Safety and Other Matters) Act was passed by Parliament in May 2011. The Act represented the most significant road safety package since 1998. Changes included raising the minimum driving age to 16 and introducing a zero blood alcohol concentration for drivers aged under 20 years.

Review regulation and legislation to improve transport outcomes while streamlining and simplifying processes and reducing compliance costs for transport users. Deliverables

An amendment to the Land Transport Management Act to be passed by the end of 2011.

Identification of further options to simplify and streamline transport rules and legislation.

Impact sought

Simplified and streamlined planning and decision-making processes, along with reduced compliance costs.

Initiatives

Land Transport Management Act: The Ministry led the development of the government's proposed changes to this Act. The changes are expected to reduce regulation and compliance costs and make the transport planning process simpler, more streamlined and less prescriptive. The changes will promote a better alignment between central and local government roles in the transport sector, and local government will have more flexibility around its transport planning and fewer processes and procedures to manage. The Ministry now expects the amendment to the Act to be introduced within the next year.

Land transport rules: The following land transport rules were completed during the year:

  • Operator Licensing Amendment (No 2) 2010
  • Traffic Control Devices Amendment Rule
  • Vehicle Lighting Amendment Rule
  • Omnibus Amendment Rule (2010)
Identify options to make the land transport revenue framework more sustainable.

Deliverable

Identification of further options to improve the sustainability of the land transport revenue framework.

Impact sought

Funding basis for transport infrastructure investments and uses is more sustainable.

Initiative

National Land Transport Fund revenue forecasting model: A review of the National Land Transport Fund revenue forecasting model was completed with the outcome of a new, more robust model, which has been externally peer reviewed. This allows the government to more effectively plan levels of expenditure over the forecast period. The Ministry provided advice to the government on deferring a previous decision to increase fuel excise duty and RUC rates on 1 July 2011.

Working closely with the NZTA and regional councils to identify and deliver options to improve value for money in public transport, walking and cycling funding and investment.

Deliverable

An amendement of the Public Transport Management Act to be passed in 2010/11.

Impact sought

Increased value for money in the procurement of public transport infrastructure and services, and walking and cycling infrastructure.

Initiative

Public Transport Management Act: The Ministry led the further development of the public transport operating model with the bus and ferry industry, regional councils and the NZTA, to improve value for money in the public transport sector. A core working group involving all of these parties reached agreement on aspects of the model. Decisions on the public transport operating model are expected to be made later this year, including decisions on any amendments to the Public Transport Management Act.

Implement the agreed standards and identify further policy options to reduce harmful emissions from road vehicles. Identify options to increase the safety and efficiency of the vehicle fleet.

Deliverables

Implementation of improved standards and identification of further options to improve transport-related air quality.

Identification of options to increase the safety of the vehicle fleet in line with Safer Journeys, New Zealand's road safety strategy 2010-2020.

Identification of options to increase the efficiency of the vehicle fleet in line with the New Zealand Energy Strategy.

Impacts sought

Reduced levels of harmful emissions from road vehicles.

Safer vehicles that contribute to a safe transport system.

More efficient vehicles that reduce energy consumption and increase transport affordability.

Initiatives

Vehicle exhaust emissions: The Ministry developed a new approach to road transport emission estimates for the New Zealand greenhouse gas inventory. This provided a more accurate assessment of New Zealand's greenhouse gas emissions for reporting under the Kyoto Protocol. The Ministry also engaged with stakeholders on the 2007 Vehicle Exhaust Emissions Rule, which seeks to phase out vehicles that are old and cause high emissions. The Ministry continued to provide input into the Health and Air Pollution in New Zealand research programme which is examining the impact air pollution has on people's lives and health.

Fuel efficiency of the vehicle fleet: The Safe and Fuel Efficient Driving New Zealand (SAFED NZ)(external link) scheme, developed by the Ministry and the NZTA, was announced in July 2010. It is a driver development course for truck, bus and coach drivers and helps organisations reduce fuel and maintenance costs, reduce carbon dioxide emissions and improve safety. Over 260 drivers and driver instructors have been trained as the SAFED scheme was implemented.

Vehicle fleet model/statistics: The vehicle fleet emissions model was developed to explore what will happen to the fleet age and size when many of the used imports in the light fleet that were manufactured in the mid 1990s are likely to be scrapped. This model is now being used to predict future road transport energy demand and support future policy proposals.

New Zealand Energy Strategy, and New Zealand Energy Efficiency and Conservation Strategy: The Ministry provided input into the transport sections for these two new strategies, which will articulate the government's current approach to energy and energy efficiency across all sectors, including transport. A transport target in the New Zealand Energy Efficiency and Conservation Strategy is that by 2016, the efficiency of light vehicles entering the fleet will have further improved from 2010 levels.

In addition to the above deliverables that were outlined in the Ministry’s 2010–2013 Statement of Intent, the following initiatives arose or were undertaken during the year.

Canterbury earthquakes

The Ministry’s Transport Response Team (TRT) was activated within 15 minutes of the Christchurch earthquake on 22 February, and a considerable number of staff contributed to the response effort. Transport agency support was ongoing throughout the TRT activation, and agencies also provided staff both for the TRT and on-call.

The Ministry established a new Earthquake Recovery Programme soon after the February earthquake to coordinate transport-related information from all transport agencies, and provided advice on transport issues, including road funding, the process to rebuild infrastructure, Orders in Council and the development of the Christchurch Earthquake Recovery Authority.

 

Output: Rail

Actual 2009/10Performance measuresActual 2010/11Standards/targets 2010/11
New The operating model for metro rail is confirmed with the government by 30 June 2011. Achieved for Wellington

Auckland to be finalised in September 2011
Achieved
New Cost
This output is produced within appropriation (GST exclusive)
$2,583,764 $3,120,000
2010/11 Planned actionsDeliverables
Advise the government on the long-term role of rail in New Zealand's transport system.

Deliverable

Advice to the Minister on the long-term role of rail in New Zealand's transport system.

Impact sought

Clarity amongst all relevant stakeholders on the government's long-term vision for rail in New Zealand.

Initiative

Advice on the implementation of the KiwiRail Turnaround Plan: KiwiRails's 3-year capital investment business case was considered and finalised in support of the Turnaround Plan. The decision to lengthen the Aratere ferry, preliminary consideration of Clifford Bay as a new South Island freight and passenger terminal, and the appropriation of the second tranche of $250 million for the Turnaround Plan continued to shape rail's role in the New Zealand economy

Develop and implement an operational model for the commercial success of KiwiRail freight operations, working closely with KiwiRail and the Treasury.

Deliverable

Operational model and capital funding package to be agreed on by the government.

Impacts sought

Increased commercial sustainability of KiwiRail.

Improved services for freight customers.

Initiative

Review of KiwiRail's financial structure and balance sheet: The review of options for the KiwiRail financial structure and balance sheet is continuing.

The Wellington metro package was delivered and the Auckland metro package well advanced.

Implement operating models for metro rail services in Auckland and Wellington and monitor infrastructure upgrades in Auckland and Wellington.

Deliverables

The agreed operating model for metro rail is in place. Contribution of upgrades within agreed project budget and timelines.

Establishment of a funding framework for metro rail activities.

Impacts sought

Streamlined ownership and operating arrangements will improve efficiency and risk management of the significant public investment in urban passenger rail services.

Improved services for communities.

Initiative

Metro rail operating policy: The Auckland and Wellington metro rail infrastructure upgrades progressed well. The new Wellington Matangi electric multiple units are now coming into service. It is now expected that a contract for the supply of the Auckland metro rolling stock should be negotiated by 30 September 2011.

An asset transfer was executed by the Greater Wellington Regional Council and KiwiRail on 5 July 2011, under which KiwiRail transferred the Ganz Mavag trains, stations and the electric multiple unit depot to the Greater Welington Regional Council. This will allow KiwiRail to increase its focus on the freight business, while continuing to provide network services in Wellington.

The Crown will continue to own and control the Wellington metro rail network infrastructure (for example, tracks, signals, power supply).

Discussions with Auckland Council and Auckland Transport on future ownership arrangements were significantly advanced.

The changes above represent a major step in the government giving effect to its metropolitan rail operating model.

Establish and maintain appropriate governance, institutional, legislative, monitoring and evalutaiton frameworks for KiwiRail. Deliverables

Amendment of institutional arrangements in place during 2011.

Establishment of a Crown Ownership Monitoring Unit (COMU) regime to monitor and evaluate the government's investment in rail.

Impacts sought

Increased efficiency and improved commercial performance of the rail network.

Improved performance from the government's investment in rail.

Initiatives

Institutional arrangements: New rail institutional arrangements were delivered through the Wellington metro rail package, with similar arrangements being negotiated with Auckland. Proposed changes to the New Zealand Railways Corporation legislation have been deferred, pending future decisions on the KiwiRail balance sheet.

Crown Ownership Monitoring Unit: The Crown Ownership Monitoring Unit (within the Treasury) has lead responsibility for monitoring the implementation of the KiwiRail Turnaround Plan. The Ministry supported the Crown Ownership Monitoring Units in this.

Develop rail safety initiatives to improve the safety of the rail system.

Deliverable

Development and implementation of rail safety action plan.

Impact sought

Reduced number of deaths and serious injuries as a result of rail accidents.

Initiative

Rail safety action plan: The Ministry reviewed the need for a rail safety action plan in light of the consolidated government ownership of the rail system and low number of rail events each year, and concluded that a rail safety action was not required at this time.

In addition to the above deliverables that were outlined in the Ministry's 2010-2013 Statement of Intent, the following initiatives arose or were undertaken during the year.

Auckland CBD rail tunnel business case assessment

The Ministry led a multi-agency review (including the Treasury, the NZTA, Auckland Council and Auckland Transport) of the business case for the Auckland CBD Rail Link. The review considered the strategic case, benefits, costs and alternatives of the project, drawing as much as possible on the NZTA project evaluation methodology and the Treasury's Better Business Case Guidelines.

 

The review concluded that the case for investigating funding and procurement for the project had not been made, and that the wider mix of options for meeting transport access into the CBD had not been sufficiently explored. However, the review also concluded that there is a strategic case for protecting the route for the future. Guidance was also provided on a range of actions that Auckland Council and Auckland Transport couuld undertake or facilitate to improve confidence in a future case for an Auckland CBD rail link.


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