Skip to: Navigation | Content | Footer

Investment levels

Updated: 29 August 2012

In developing this National Land Transport Programme (NLTP), the NZ Transport Agency (NZTA) has considered a range of inputs to arrive at its decisions on the optimal investment level for each activity class. Chief amongst its considerations is giving effect to the Government Policy Statement (GPS). Other considerations included regional land transport programmes, activity management plans, regional public transport plans, council long-term plans and relevant transport strategies. We also consider the actual ability of the sector to deliver activities in the three-year period.

The table below provides a summary of the NZTA investment levels by activity class, the key outcomes sought from investment and the key considerations behind the investment levels. The NLTP is dynamic and the NZTA will respond to variations from the plan, which will impact the investment levels as the NLTP is delivered. These variations include:

  • revenue movements that differ from the plan due to economic conditions and fuel prices
  • government decisions on the rates of fuel excise duty and road user charges
  • events such as floods, slips and earthquakes, and
  • the performance of the organisations, including the NZTA, in delivering their programmes of work under the NLTP.

Some of the variation will be managed within the short-term borrowing facilities provided by the Government, which mitigate some of the impacts of seasonal variation and unexpected events. Additionally, the extraordinary impact of the Canterbury earthquake on NZTA cash-flows is being softened through top-up funding from the Canterbury Earthquake Recovery Fund and from either government or NZTA borrowing for the NLTP.

Activity class NZTA investment level relative to GPS 2012 funding range & 2009-12 NLTP spend Key outcomes/impacts sought Key considerations
Transport planning
($50m 2012-15)
  • 10% below mid-GPS 2012 range
  • 24% under 2009-12 NLTP spend
  • Precursor to future outcomes to be achieved from the NLTP
  • Investment Revenue Strategy (IRS) direction on integrated planning – and other GPS expectations
  • Quality and priority of proposed activities in RLTPs and NZTA nationally delivered programmes
  • Requirement for quality transport planning for long term delivery of outcomes
  • Outcomes of activity class review in 2009-12
  • Reduced funding assistance rate for 2012-15
Road safety promotion
($97m 2012-15)
  • At mid-GPS 2012 range
  • 11% under 2009-12 NLTP spend
  • Reductions in deaths and serious injuries from road crashes
  • IRS direction on road safety
  • Quality and priority of proposed activities in RLTPs and NZTA nationally delivered programmes
  • Maintaining momentum from 2009-12 NLTP
  • Outcomes of activity class review in 2009-12
  • Reduced funding assistance rate for 2012-15
Walking & cycling
($53m 2012-15)
  • 15% below mid-GPS 2012 range
  • 27% above 2009-12 NLTP spend
  • More transport mode choices
  • Easing of severe urban congestion
  • Reduction in adverse environmental effects from transport
  • IRS direction on road safety, and economic growth and productivity
  • Quality and priority of proposed activities in RLTPs
  • Walking and cycling activities undertaken as part of other proposed quality activities in RLTPs
  • Remaining R funds in Nelson
  • Maintaining momentum on model communities
Public transport services
($830m 2012-15)
  • At mid-GPS 2012 range
  • 35% above 2009-12 NLTP spend
  • More transport mode choices
  • Easing of severe urban congestion
  • Reduction in adverse environmental effects from transport
  • IRS direction on economic growth and productivity – especially on making quality investments in public transport
  • Quality and priority of proposed activities in RLTPs
  • Requirement to increase funding to cover investments in rolling stock and increased track access charges
  • Potential to increase momentum from 2009-12 NLTP, in particular in Auckland if proposals demonstrate value for money
Public transport infrastructure
($115m 2012-15)
  • 4% below mid-GPS 2012 range
  • 31% under 2009-12 NLTP spend
  • More transport mode choices
  • Easing of severe urban congestion
  • Reduction in adverse environmental effects from transport
  • IRS direction on economic growth and productivity – especially on making quality investments in public transport
  • Quality and priority of proposed activities in RLTPs
  • Funding of major rail infrastructure shifted to public transport services activity class
  • Funding of public transport roading infrastructure shifted to new and improved infrastructure for local roads and state highways activity classes
Public transport combined
($945m 2012-15)
  • 21% above 2009-12 NLTP spend
Maintenance & operation of local roads
($878m 2012-15)
  • Close to top of GPS 2012 range
  • 7% above 2009-12 NLTP spend
  • Better use of existing transport capacity
  • Reductions in deaths and serious injuries from road crashes
  • Resilient and secure transport network
  • IRS direction on economic growth and productivity and on safety
  • Quality and priority of proposed activities in RLTPs
  • Approved organisation long term plans
  • Activity management plans
  • Long term view on asset management
  • Outcomes from the Road Maintenance Task Force
  • Emergency works provision for weather related events and for Canterbury earthquake damage
Maintenance & operation of State highways
($989m 2012-15)
  • Close to top of GPS 2012 range
  • 1% above 2009-12 NLTP spend
  • Better use of existing transport capacity
  • Reductions in deaths and serious injuries from road crashes
  • Resilient and secure transport network
  • IRS direction on economic growth and productivity and on safety
  • Quality and priority of proposed activities in RLTPs
  • State highway activity management plan
  • Long term view on asset management
  • Outcomes from the Road Maintenance Task Force
  • Emergency works provision for weather related events and for Canterbury earthquake damage
Renewal of local roads
($738m 2012-15)
  • Close to top of GPS 2012 range
  • 23% above 2009-12 NLTP spend
  • Better use of existing transport capacity
  • More efficient freight supply chains
  • Resilient and secure transport network
  • IRS direction on economic growth and productivity
  • Quality and priority of proposed activities in RLTPs
  • Approved organisation long term plans
  • Activity management plans
  • Long term view on asset management
  • Outcomes from the Road Maintenance Task Force
Renewal of State highways
($635m 2012-15)
  • Close to top of GPS 2012 range
  • Same as 2009-12 NLTP spend
  • Better use of existing transport capacity
  • More efficient freight supply chains
  • Resilient and secure transport network
  • IRS direction on economic growth and productivity
  • Quality and priority of proposed activities in RLTPs
  • State highway activity management plan
  • Long term view on asset management
  • Outcomes from the Road Maintenance Task Force
New & improved infrastructure for local roads
($515m 2012-15)
  • 9% above mid-GPS 2012 range
  • 17% above 2009-12 NLTP spend
  • More efficient freight supply chains
  • Resilient and secure transport network
  • Easing of severe urban congestion
  • Reductions in deaths and serious injuries from road crashes
  • IRS direction on economic growth and productivity and on safety
  • Quality and priority of proposed activities in RLTPs
  • Approved organisation long term plans
  • Provision for new roading in Christchurch
  • Auckland Transport starts on projects in 2011/12 during moratorium on new approvals – NZTA payment in 2012-15
New & improved infrastructure for State highways
($3,400m 2012-15)
  • 7% above mid-point of GPS 2012 range
  • 8% above 2009-12 NLTP spend
  • More efficient freight supply chains
  • Resilient and secure transport network
  • Easing of severe urban congestion
  • Reductions in deaths and serious injuries from road crashes
  • IRS direction on economic growth and productivity and on safety
  • Quality and priority of proposed activities in RLTPs
  • State highway activity management plan
  • NZTA priority to deliver RoNS programme
  • Balancing programme to include minor and small works targeted at safety outcome
Road policing
($900m 2012-15)
  • Close to top of GPS 2012 range
  • 2% above 2009-12 NLTP spend
  • Reductions in deaths and serious injuries from road crashes
  • IRS direction on safety
  • Quality and priority of proposed activities in draft programme
  • Road policing activity class review
  • Provision for extra safety cameras if proposals demonstrate value for money ($10m)
Sector research
($15m 2012-15)
  • At top of GPS 2012 range
  • 22% above 2009-12 NLTP spend
  • Potential contribution to future outcomes to be achieved from the NLTP
  • IRS direction on economic growth and productivity and safety
  • Quality and priority of current and proposed activities in programme
  • Transfer of Austroads research contribution from operations budget to sector research
Management of the funding allocation system
($89m 2012-15)
  • At top of GPS 2012 range
  • 8% below 2009-12 NLTP spend
  • Contribution to all outcomes to be achieved from the NLTP
  • GPS direction on value for money
  • NZTA performance measure – hold costs to 1% or less of total NZTA funding in NLTP
  • NZTA Statement of Intent 2012-15