Central Area Road Transport Seminar
Some of you may have been at the Roading New Zealand conference, and I know you have been watching the developments in the portfolio over recent months, but I would like to outline the Government's transport priorities.
While we are experiencing a global economic downturn, we are confident about New Zealand's economic prospects - and there have been signs of small growth in the last quarter. We have a genuine opportunity to emerge from the recession in a stronger position than most other countries.
This government wants to get value for money out of every transport dollar spent and that we are investing wisely in projects that will have a genuine productivity benefit for the country.
In the current economic climate, we also need to ensure we combine both of those factors with projects that will create jobs and provide economic stimulus to the regions.
To help support the government's overall drive to stabilise the economic situation, and secure growth for the future, we have committed to two key priorities for transport. They are economic growth and productivity, and safety.
National Infrastructure Plan
The government is also committed to addressing the national infrastructure deficit - and I want to take this opportunity to update you on that.
We see two components to addressing infrastructure. The first is getting the regulatory environment right, and the reforms to the Resource Management Act recently passed by Parliament are a key part of that.
The second thing you need to do is provide an investment plan that gives greater certainty and that can bring about better coordination.
Later in the year we'll be spelling out our investment objectives in a draft National Infrastructure Plan. It will set a clear direction for vital national infrastructure investment over the next 20 years.
The 20-year infrastructure plan will also provide greater certainty and confidence about the nature and timing of future government investment.
The private sector will be better able to identify potential opportunities for their own future infrastructure investment decisions, alone or in partnership with the public sector.
Sitting behind this plan is a commitment to invest an additional $8.5 billion over the next six years in new capital projects. That's $8.5 billion above investment that had already been budgeted for by the previous government.
We've already flagged some initiatives that will be part of the infrastructure plan - including the Waikato Expressway, one of the Roads of National Significance.
Roads of National Significance
As you will have heard, the Minister of Transport Steven Joyce has already outlined seven of these, which represents a statement of national road funding priorities.
The roads are centred on New Zealand's five largest population centres that have heavy traffic volumes, and are of national strategic importance for the economy. All need work to reduce congestion, improve safety and support economic growth. The roads are:
- Puhoi to Wellsford - SH1
- Completion of the Auckland Western Ring Route - SH20/16/18
- Auckland Victoria Park bottleneck - SH1
- Waikato Expressway - SH1
- Tauranga Eastern Corridor - SH2
- Wellington Northern Corridor (Levin to Wellington) - SH1
- Christchurch motorway projects
The purpose of listing roads as "nationally significant" is to allow the government to have input into the development of the land transport programme from a nationwide perspective.
Government Policy Statement on Land Transport Funding
It is essential that we have an efficient and realistic funding structure. When this government came into office, we decided a review of the current funding programme was required, and in May, we released the amended Government Policy Statement on Land Transport Funding (known as GPS).
As the main government document for influencing land transport planning and funding, the GPS has a significant effect on the future of the transport sector - it was amended with a number of changes in mind.
Foremost was to make economic growth and productivity the primary objective for investment in land transport infrastructure and services, getting more efficient funding allocation, and investment in transport infrastructure that better reflects the modal options realistically available to New Zealanders.
Key to seeing this greater economic growth and productivity will be increasing the level of funding for State highways by more than $1 billion over the next three years, and lifting investment in State highways to 35 percent of the total National Land Transport Fund to see almost $11 billion invested over the next 10 years.
Total central government investment in roading in the next three years will increase by 26 percent compared to the last three years, from approximately $5.2 billion to over $6.6 billion in the three years to 2011/12.
This level of investment will be achieved by reallocating funding from non-State highway activity classes, freeing up funding by replacing capital investment in Wellington rail infrastructure in the National Land Transport Fund with direct Crown funding, and making small national increases in fuel excise duty and road user charges.
Actions already
Now this will sound like a lot of changes in the way the books are balanced, but I want to assure you that this government is more than just ‘talk' and ‘strategies'.
Earlier this year, we announced a $500 million national stimulus package, which includes a significant transport component - $142 million worth of State highway improvements - and many of these projects are already underway.
Construction on the Kōpū Bridge replacement has started, one year ahead of the original schedule; the Rimutaka Corner Easing, Matahorua Gorge Realignment, and the Hawke's Bay Expressway Southern Extension are all due to start construction in October 2009; and construction on the Christchurch Southern Motorway Extension is due to start March 2010.
Good progress is being made on the small and medium sized activities, which generally focus on State highway safety improvements and pavement renewals.
To date, 86 small and medium sized projects have been funded, and the NZ Transport Agency is continuing to identify activities to progress over 2009/10.
Heavy Vehicle Productivity
The Government has also undertaken some work to improve road freight productivity.
Moving freight efficiently is an essential part of any good transport system. New Zealand's freight task is estimated to increase by 70-75 percent by 2031. Even with rail and coastal shipping playing their part the bulk of the increase will have to be carried by road.
For this reason the Ministry of Transport has been investigating the development of a permit system that will allow heavy vehicles to carry loads outside the current mass and dimension limits.
Results from trials and research have shown that significant productivity benefits can be gained from this part of the transport sector by increasing the current limits.
The trials indicated that we can expect to see a reduction in trip numbers, reduced fuel use, environmental benefits from reduced emissions and an overall increase of productivity of up to 20 percent.
A draft amendment to the Vehicle Dimensions and Mass Rule that would allow heavier vehicles to operate on selected and approved routes has been publicly consulted on. The submissions received are being considered and the Rule will be redrafted to take into account the concerns raised.
We are aware of the road infrastructure and funding issues that have been raised by some submitters - especially road controlling authorities - and by your organisation.
Given these concerns Minister Joyce has asked officials to have further discussions with Local Government New Zealand and some of the local authorities and report back to him on how we might move forward.
We are sure there is a way to resolve the concerns that have been raised.
Further, it should be highlighted that while these proposed changes will allow permits for heavier loads to be carried - road controlling authorities will still have the ultimate say.
Levin to Wellington Road of National Significance
Another issue which I know you will be interested in is the progress on the Levin to Wellington Road of National Significance.
State Highway 1 is a hugely important lifeline for the Kapiti district, the lower North Island generally, and our capital city to the south.
As part of our commitment to the corridor as a Road of National Significance, we are looking to see an accelerated upgrade of that highway to improve safety and reduce journey times.
We want to see a permanent alignment for the State Highway expressway in Kapiti, part of the Levin to Wellington Road of National Significance, to be agreed with the community.
Following community meetings, Minister Joyce has asked the New Zealand Transport Agency to add a third option in its consultation for the alignment.
We are continuing to seek the communities' views on this project. We need to be completely clear as to the preferred long-term alignment before proceeding with the big programme of work in front of us.
Road User Charges
Another issue dear to your hearts is the issue of road user charges.
The government is looking to simplify and modernise the RUC system. Over time this will involve a move to an internet-based RUC purchase system which will reduce compliance costs and the risk of evasion.
Another step to reduce compliance costs is the new requirement to give six week's notice of RUC increases passed into law last month, so that transport operators can plan and budget accordingly.
Safer Journeys
The last thing I'd like to talk about is safety - another priority area for the government.
Certainly research has played an immense role in the development of a road safety discussion document, Safer Journeys, which was released last month.
Safer Journeys was launched to mark the first stage in the development of what will be the guiding document for road safety in New Zealand through to 2020.
For the first time in New Zealand's history it proposes a road safety vision and introduces a concept of the Safe System. This marks a major culture change in the way we approach road safety.
The first stage is seeking feedback from all New Zealanders and that includes the experts/academics/researchers in the room today. We want to know what you think are the best ways to address our road safety problem.
We want this to be more than a strategy. We want it to use the evidence and research we have and turn that into actions that will save lives.
We want to take our proposed new vision of "a safe road system that is increasingly free of road deaths and serious injuries" and make it a reality.
This vision signals a progressive approach to road safety. It acknowledges that while we can never prevent all road crashes from happening, a large number can be prevented - and the likelihood of these crashes resulting in deaths or injuries can be reduced.
It also removes the perception that the government is comfortable with a given level of serious road crashes. In setting this vision, we follow international best practice. The world's best road safety performers all have a bold vision.
Conclusion
I hope I have been able to provide you a good update on the government's vision for transport, what we have already done since November last year and where we are headed.
Again, I thank you for the invitation to speak with you today and look forward to having an informal catch up with you all shortly.