Chapter F5 Passenger transport

F5.10 Funding for passenger transport operations and infrastructure

Introduction

This section describes the NZTA's funding assistance policy for work categories in:

• activity class 4: public transport services
• activity class 5: public transport infrastructure.

FAR for each work category

The table below describes the funding assistance rate for each work category in activity classes 4 and 5.

Work category	Funding assistance rate
511, 512, 513	50 percent
514, 515, 519, 531	60 percent
517	40 percent for regional authorities that have not met the conditions and signed up to phase 1 of the revised Total Mobility scheme up to 50 percent for regional authorities that have met the conditions and signed up to phase 1 of the revised Total Mobility scheme up to 60 percent for those regional authorities that have met the conditions and signed up to phase 2 of the revised Total Mobility scheme
521	100 percent
533	The TA construction rate for the territorial authority responsible for the passenger transport road improvements Reference: For detail about TA construction rates, see section F9.10.

Applications for funding

Applications for funding for bus, ferry or passenger rail infrastructure should explain the links between projects and, where appropriate, present the projects in the form of a package.

Supplementary funding from local authorities and other parties will be taken into account when assessing the economic efficiency factor of the proposal as part of the prioritisation stage of the planning, programming and funding process.

NZTA funding will normally be channelled through the regional authority, even when a territorial authority partly funds the project. NZTA funding assistance may be conditional on:

• any future disposal of assets being subject to agreement with the NZTA
• effective measures to ensure appropriate access by other operators and commercial interests.

Applications need to take account of ongoing maintenance costs and any revenue generated from sources such as car parking fees. Ongoing operating or maintenance costs associated with approved improvement projects or packages will be funded as part of the ongoing funding assistance for bus and ferry services or passenger rail services.

Note about funding assistance for Total Mobility scheme

Funding assistance from the NZTA will not automatically move to 50 percent upon sign-up of phase 1 for the Total Mobility scheme, because the regional authority's funding contribution to Total Mobility must not fall below the budgeted 2005/06 level. This also applies to the funding assistance rate for phase 2.

Therefore, for any related expenditure above the 2005/06 base allocation, the regional authority will get 100 percent funding assistance from the NZTA up to the 50 percent level for phase 1 and up to 60 percent for phase 2.

Work category 531 Funding contribution from other sources

The New Zealand Transport Agency in deciding its level of financial assistance will take into account the value of land and buildings of redundant public transport facilities.

Where the NZ Transport Agency (or its predecessors) has provided funding for redundant public transport facilities, it may seek a share from the sale of the existing redundant facility, or have the share off-set against the NZ Transport Agency contribution.

The New Zealand Transport Agency in deciding its financial assistance will take into account the value of future commercial development potential of a new or redeveloped transport facility.