Good evening and thank you for being here for this joint 2008/09 Land Transport New Zealand National Land Transport Programme and Transit New Zealand State Highway Forecast launch.

 

I would like to thank Wayne Donnelly as former Chief Executive of Land Transport New Zealand and current acting Chief Executive of the Ministry of Transport, LTNZ acting Chief Executive Simon Whiteley, LTNZ Board Chair Paul Fitzharris and the LTNZ board members for overseeing the 2008/09 NLTP process.

  

I’d also like to acknowledge the work of David Darwin, Murray Riley, Bob Alkema and Richard Braae for their involvement.

 

Thank you also to Transit New Zealand acting Chair Bryan Jackson and his Board, Chief Executive Rick van Barneveld and his management team and David Silvester, Peter Hookham and the Transit funding and forecasting team for overseeing the preparation of the 2008/09 State Highway Forecast.

 

Finally, I’d like to acknowledge the contribution of the Regional Land Transport Committees who developed Regional Land Transport Strategies. These strategies play a key role in planning State highway activities.

When I launched the 2007/08 NLTP last year I spoke about the amount of change that was underway with the Next Steps review of the land transport sector and the merging of Land Transport New Zealand and Transit into one entity.

 

It has certainly been a busy 12 months since then with a huge amount of work undertaken to get to this point. This is a period of considerable transition for the transport sector, but it is important to bear in mind the end results.

The changes taking place now will provide greater certainty and the means of getting on with the business of providing the country with a transport system that is sustainable, accessible, safe and offers value for money.

 

Tonight marks the last time the NLTP and State Highway Forecast will be delivered in their current formats. It also marks the final days of Land Transport New Zealand and Transit New Zealand operating as separate entities before they combine to become the New Zealand Transport Agency.

 

I know there has been a huge amount of work across both agencies to be ready to implement the requirements of the Next Steps and the Land Transport Management Amendment Bill.

 

Now that we are on the cusp of the legislation being passed I would like to acknowledge the achievements of both Land Transport New Zealand and Transit in their respective roles as the operational arms of Government. The work each has undertaken - whether it has been safety campaigns and driver education, or major infrastructure investigation and construction – has been of immense value to the New Zealand transport sector.

 

I know this work will continue under the direction of the NZTA. Combining the functions of LTNZ and Transit will ensure an improved focus on value for money for land transport activities. I look forward to following the progress of this new ‘super’ Agency in implementing transport solutions to keep New Zealand moving.

 

Before I outline the achievements of the transport sector over the past year I’d like to talk briefly about some of the broad or overarching principles that I believe should guide the work we are doing, particularly when it comes to planning how we invest funding. I believe there are four of them:

 

·        Firstly, transport is critical to economic progress. A high level of value for money investment is required across different modes of transport to address ongoing infrastructure needs.

·        Secondly, transport must be thought about in an integrated way. Each mode – from walking to rail freight, road transport to coastal shipping and air -- must play its part in our long term transport strategy.

·        Thirdly, transport must be environmentally sustainable. There is no one solution, but an innovative approach to creating sustainable transport alternatives will mean we will achieve our targets whilst still also meeting our economic and social needs. 

·        And fourthly, New Zealand’s international transport links cannot be put at risk. We must invest so that our exporters can compete. We must meet our obligations to be a responsible international participant.

These overarching principles need to be the focus for everything we do. In marketing-speak they would be called “critical success factors” – in other words, these are the factors that we have to get right.

So what are we doing to get things right?

The following, in no particular order, illustrate the huge amount of progress that has been made in transport over the past year.

·        As you all know the Land Transport Management Amendment Bill will enable the establishment the New Zealand Transport Agency through the merger of Land Transport New Zealand and Transit New Zealand. It will also give effect to the Government Policy Statement, or GPS, which will establish the short to medium-term funding policy and investment priorities for the land transport sector.

·        There have been a number of significant openings such as the Northern Busway, the Greenhithe Deviation and Upper Harbour Bridge projects in Auckland and many projects underway including the Manukau Harbour Crossing section of Auckland’s Western Ring Route and the Dowse to Petone upgrade in Wellington.

·        Next month the updated New Zealand Transport Strategy will be released. The document will provide a high-level strategic plan for transport through to 2040 for an integrated transport sector that contributes to New Zealand’s broader social, economic and environmental needs.

·        Work has already begun on achieving the goals set out in the Strategy, particularly on integrating our transport sector to meet the anticipated growth in total freight movement around the country, which is expected to more than double by 2040. The Government’s $600 million buy-back of rail and ferry assets held by Toll Holdings Ltd means we can now invest in rail to further its potential to contribute in a much more meaningful way to the New Zealand economy.

 

·        Another step towards an integrated transport sector was the recent launch of the Government’s domestic sea freight strategy – Sea Change. We have committed $36 million over four years to revitalise coastal shipping as a vital part of the transport network.

·        Selected road transport companies from across industry are now taking part in a six-month trial, carrying loads of up to 50 tonnes, rather than the 44 tonnes than has been legally allowed.  This overall project has the potential to improve road freight efficiency by reducing the number of vehicle movements required to distribute the same amount of freight. 

 

·        We are working closely with local government partners to improve public transport. The Public Transport Management Bill, currently going through the Parliamentary process, is designed to provide effective, efficient and integrated commercial public transport services that deliver value for money.

 

·        Budget 2008 saw record investment in transport continue with two highlights being funding for the 10–year Canterbury Transport Regional Implementation Plan and regional development initiatives in both Northland and Tairawhiti.

 

·        Just last week I announced stage two of investigation into Transmission Gully was ready to go ahead. Transit has indicated a preferred route designation with an estimated cost savings of $275 million.

 

·        This year Associate Transport Minister Judith Tizard launched the Vehicle Exhaust Emissions Rule for imported new and used vehicles to comply with minimum emissions standards. Over time this will progressively improve the emissions standard of the national fleet.

 

·        We are continuing work on the exciting role that new vehicle fuels and technologies, such as electric vehicles and biofuels, can play in increasing the sustainability of the transport sector while reducing our dependence on fossil fuels.

 

·        Transport Safety Minister Harry Duynhoven has seen the introduction of the Vehicle Equipment Rule, raised the issue of amending the Land Transport (Road User) Rule 2004 to ban the use of hand-held mobile phones while driving a vehicle and, most recently, released a discussion document seeking public opinion on a compulsory third party vehicle insurance scheme.

 

·        In December last year a package of road safety initiatives was announced aimed at reducing the number of young people dying on our roads. As well, in March a package of safety initiatives targetting motorcyclists was also released.

 

As you can see, sustainable solutions continue to be the focus of ongoing work and investment in transport.

 

I hardly need to labour the point with this audience that the Government through the provision of past NLTPs and State Highway Forecasts is currently undertaking the largest land transport funding and construction programme the country has ever seen.

 

Since 1999, total Government investment in transport has increased by more than 150 percent from just over $1 billion in 1999/2000 to a forecast $2.75 billion in 2007/08. Total Government investment in transport in 2008/09 is forecast to reach just over $3.1 billion.

 

The 2008/09 NLTP allocates a total of $2.7 billion across 12 activity classes. This represents a record level of expenditure through the NLTP, an increase of 12 percent from the $2.4 billion allocated last year.

 

We are building transport systems that are world class, aid the economy and consider the country’s long term needs.

 

Some of the highlights of this year’s NLTP include:

·        Approximately $791 million for State highway construction – up from $664 million for 2007/08.

 

·        $325 million for passenger transport services and infrastructure - an increase of $62 million from 2007/08.

 

·        $273 million for road policing – an increase of $13 million from last year.

 

·        $18 million for walking and cycling. This is $3.5 million more than was allocated in 2007/08 and reflects anticipated growth in demand.

 

·        $6 million for coastal shipping.

 

A new initiative which will apply from 2008/09 is the provision within the NLTP of an additional $26 million in financial assistance available to local government for transport planning and activities to improve access and mobility in communities with unmet transport needs. This complements the Land Transport Management Amendment Bill’s focus on strengthening regional planning and the ongoing emphasis on improving integrated planning and project development.

 

Looking to the future of transport planning - ongoing forecast revenue available with full hypothecation will be significantly higher than the National Land Transport Fund would have otherwise been without this ring fencing of revenue.

 

This additional funding won’t make the tough decisions go away - the current list of demands for transport investment already far exceeds forecast revenue - but it will put the transport sector in a better position than it would otherwise have been.

 

Moving from funding programming to construction forecasting, the 2008/09 10-Year State Highway Forecast marks year three of the five year plan of works made possible by the Government’s significant transport investment in Budget 2006.

 

 A total of $1.3 billion in extra funding was injected into the land transport programme to progress a portfolio of key projects over five years.

 

This funding has provided greater certainty and this year’s State Highway Forecast shows continued good progress on these key deliverables.

 

Maintenance and operations accounts for around one third of the State highway budget each year and is the mainstay of the State highway business, ensuring the network is robust and able to facilitate the journeys of daily life.

 

This is in addition to the many small and medium projects underway around the country – from passing lanes to walking and cycling facilities, stock effluent disposal facilities to strategic studies.  I know from my travels around the country that you don’t have to travel far to see these smaller but very beneficial projects underway.

 

I am pleased to see major projects programmed for a construction start in 2008/09 include:

 

·        Akerama Curves and Realignment on State highway 1 in Northland,

 

·        Stage 1 of improvements at Warkworth,

 

·        The Punganui Stream Bridge Replacement on State highway 16 in Auckland,

 

·        And the Waipukurau Overbridge Realignment on State highway 2 in Hawke’s Bay.

 

At the same time progress will continue on committed projects around the country, including:

·        Northern Gateway Toll Road in Auckland (ALPURT B2), Hobsonville Deviation and Manukau Harbour Crossing projects in Auckland,

 

·        The Mangatawhiri Deviation, Avalon Drive Bypass and Piarere to Oak Tree Bends Realignment in Waikato,

 

·        The Bell Block Bypass and Mangaone Road four-laning, and the Rugby Road Realignment in Taranaki,

 

·        The Ohingaiti to Makohine Realignment in Manawatu/Wanganui

 

·        The Dowse to Petone Upgrade in Wellington, and the Ruby Bay Bypass near Nelson.

 

This year will also expect to see the start of design on four key Waikato Expressway projects – The Te Rapa Bypass, Hamilton Bypass, Huntly Bypass and Long Swamp to Rangiriri four-laning.

 

Other key activities include the design of the Memorial Ave to Yaldhurst Road and Sawyers Arms to Memorial Ave four-Laning in Christchurch, and the design of improvements at the State highway 2/58 Haywards interchange here in Wellington.

 

As I said earlier this list is just part of the large body of work Transit undertakes around the country each year balancing the large much anticipated projects with the no less important task of maintaining the entire State highway network.

 

In closing I want to acknowledge the difficult nature of allocating a finite amount of funding across a large number of national and regional priorities. Funding forecasting will always be one of the biggest challenges facing the transport sector.

 

Thank you again to all of you here who work so hard at balancing these priorities to produce the NLTP and State Highway Forecast and, like you all here, I look forward to future funding forecasts under the new provisions of the LTMA. Thank you.