For each National Land Transport Programme (NLTP), the bids for funding for regional and national projects are always higher than available forecast revenue from the NLTF. To ensure funding is prioritised and distributed on a national basis to give effect to the GPS and achieve the best investment for New Zealand, we develop an investment framework which is used to assess and prioritise each activity for funding.

For the 2021–24 NLTP, we developed the Investment Prioritisation Method (IPM) to give effect to the GPS 2021 and prioritise activities for funding. This replaces the Investment Assessment Framework (IAF) that was used for the 2018–21 NLTP.

In broad terms, funding is prioritised using the following tiered investment approach:

  • Activities that have been previously approved for funding and are continuing to be delivered in 2021–24.
  • Continuous programmes, such as state highway and local road maintenance, public transport services and road safety promotions – and indicative funding for these are provided early to councils to enable them to finalise their Long Term Plans and to Regional Transport Committees to finalise their RLTPs. This allocation reflects a starting point for assessing these programmes, the importance of maintaining ongoing levels of service, as well as an assessment of each programme for GPS alignment.
  • The three-year RNIP as approved by the Minister of Transport.
  • Improvement activities, including low cost low risk activities, are prioritised for funding based on the GPS priorities and government commitments. Low cost low risk activities are assessed primarily on GPS alignment.

By using the IPM, in conjunction with moderation undertaken by senior subject matter experts, considering RLTP priorities and involving representatives from local government and Ministry of Transport as observers of our prioritisation process, our decisions at every stage follow a transparent, evidence-based process to ensure we deliver the outcomes of the GPS and best value for money for New Zealand.

We must plan to meet minimum spend levels for each activity class. Each activity is prioritised for funding using the IPM, against other activities in the same activity class.

There is always a degree of over-programming within each activity class to manage the continual dynamic nature of activities, as a result of programme phasing, completion of business cases and availability of funding. This means the NLTP continually changes throughout the three-year period.