The purposes of this Bill are to alter the funding priorities of the National Land Transport Fund over time so that, after five years, funds are allocated mainly to travel demand management and infrastructure and services supporting transport modes other than the private motor vehicle. The Bill also includes a new section identifying the Minister’s responsibilities to ensure that transport decisions meet the purposes of the principal Act.
Currently, the National Land Transport Programme prioritises disproportionate amounts of funding on unsustainable modes of transport. For 2007/08, this equates to spending six times as much on maintaining and growing the road transport network as spent on rail, sea, walking, and cycling alternatives.
The need for a redefining of spending priorities is demonstrated by the statements in the National Land Transport Programme 2007/08. Passenger transport service expansion continues to be restricted by limited funding from local authorities while the number of projects submitted for walking and cycling projects continues to exceed the level of funding allocated.
Clause by clause analysis
Clause 5 inserts two new subsections into section 19 specifying percentages of the national land transport fund that are to be spent on particular activity classes.
Clause 6 amends Schedule 1 to ensure that Transit New Zealand includes in its land transport programme only those proposed State highway system activities for which confirmation of support, including an agreed level of financial support, has been received from all local authorities within whose geographical area the activity occurs, either in whole or in part.
Clause 7 amends section 5 to include a definition of
“financial assistance rate”.
Clause 8 amends the Act to include a new section concerning the setting of financial assistance rates.
Clause 9 amends the Act to include a new section identifying the responsibilities of the Minister.
Clause 10 addresses consequential amendments.