Regional Transport Committee

Tuesday 5 April 2022 at 11.00am

 

 

AGENDA

 


Regional Transport Committee

5 April 2022

Regional Transport Committee Agenda

 

Meeting to be held in the Remotely via Zoom link

on Tuesday 5 April 2022, commencing at 11.00am

 

Recommendations contained in the agenda are NOT decisions of the meeting. Please refer to minutes for resolutions.

 

MEMBERSHIP OF THE Regional Transport Committee

 

Chairperson Rick Stolwerk

FNDC Councillor Ann Court

WDC Councillor Greg Martin

KDC Councillor David Wills

NZTA Representative Steve Mutton

Deputy Chair Terry Archer

 

 

KARAKIA / WHAKATAU

 

RĪMITI (ITEM)                                                                                                                                                                Page

1.0       Ngā Mahi Whakapai/Housekeeping

2.0       Ngā Whakapahā/apologies   

3.0       Ngā Whakapuakanga/declarations of conflicts of interest

4.0       Ngā Whakaae Miniti (Confirmation of Minutes)

4.1       Confirmation of Minutes - 8 December 2021                                                                                   4

4.2       Receipt of Action Sheet                                                                                                                             9

5.0       Ngā Ripoata Putea (Financial Reports)

5.1       Northland Regional Land Transport Plan 2021-2027 Funding Uptake                                  12

6.0       Operational Matters

6.1       Waka Kotahi Northland Activity and Funding update                                                                 17

6.2       Waka Kotahi Designing Driver Licencing Strategy report                                                           45

6.3       Northland to Auckland Four Lane Highway Update                                                                     48

6.4       Northland Road Safety Update                                                                                                            50

7.0       Ngā Take (Decision Making Matters)

7.1       Te Huringa Taraiwa: Te Arotake I Te Punaha Utu Kaiwhakamahi Rori/Driving Change: Reviewing the Road User Charges System                                                                                                                    64


 

 

 


Regional Transport Committee                                                                                                                                  item: 4.1

5 April 2022

 

TITLE:

Confirmation of Minutes - 8 December 2021

From:

Nicky Hansen, PA to GM Community Resilience

Authorised by Group Manager/s:

Victoria Harwood, Pou Tiaki Hapori - GM Community Resilience, on 29 March 2022

 

Ngā mahi tūtohutia / Recommendation

That the minutes of the Regional Transport Committee meeting held on 8 December 2021, be confirmed as a true and correct record.

 

Attachments/Ngā tapirihanga

Attachment 1: 2021 12 08 Regional Transport Committee Minutes - unconfirmed   


Regional Transport Committee  ITEM: 4.1

5 April 2022Attachment 1

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Regional Transport Committee                                                                                                                                  item: 4.2

5 April 2022

 

TITLE:

Receipt of Action Sheet

From:

Nicky Hansen, PA to GM Community Resilience

Authorised by Group Manager/s:

Victoria Harwood, Pou Tiaki Hapori - GM Community Resilience, on 29 March 2022

 

Whakarāpopototanga / Executive summary

The purpose of this report is to enable the meeting to receive the current action sheet.

 

Nga mahi tutohutia / Recommendation

That the action sheet be received.

 

 

Attachments/Ngā tapirihanga

Attachment 1: Regional Transport Committee Action Sheet - as at 29 March 2022   


Regional Transport Committee  ITEM: 4.2

5 April 2022Attachment 1

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Regional Transport Committee                                                                                                                                  item: 5.1

5 April 2022

 

TITLE:

Northland Regional Land Transport Plan 2021-2027 Funding Uptake

ID:

A1444810

From:

Chris Powell, Transport Manager - Northland Transport Alliance

 

Executive summary

This report covers the subsidy claims submitted to Waka Kotahi NZ Transport Agency for the first financial year of the 2021-2024 three-year funding period and details the funding uptake by each approved authority for the eight-month financial period 1 July 2021 to 31 March 2022.

 

Recommendation

That the report ‘Northland Regional Land Transport Plan 2021-2027 Funding Uptake’ by Chris Powell, Transport Manager - Northland Transport Alliance and dated 16 March 2022, be received.

 

Background

Reports relating to the progress made on the funding uptake of the Northland Regional Land Transport Plan 2021-2027 are to be tabled at each Regional Transport Committee (RTC) meeting. 

These reports serve to update the RTC on the progress of those Activities/Programmes approved for funding assistance in the National Land Transport Programme 2021-2024 for the Far North District Council, Whangarei District Council, Kaipara District Council, and the Northland Regional Council.

These reports are designed to make comparisons of Budgeted Expenditure against Actual Expenditure by Activity Class/Programme for the relevant financial period.

Please note that the attached spreadsheets have been amended as follows: -

·    The column titled “Probability of Full Funding Uptake in 2021/2022 Financial Year” will now be colour coded to provide for a Traffic Light reporting system.

·    A section titled “Regional Strategic Objectives Being Met” has been included to better reflect where the various projects and work categories are supporting the five Regional Strategic Objectives included in the Regional Land Transport Plan 2021-2024

·    A section titled “Regional Priorities Being Met” has been included to better reflect where the various projects and work categories are supporting the seven Regional Priorities included in the Regional Land Transport Plan 2021-2024

 

The Activities/Programmes reflected in the attachments do not include non-subsidised projects or work categories.

The base information contained in the attachments is sourced directly from the Waka Kotahi NZ Transport Agency’s ‘2021-2024 National Land Transport Programme for Northland’ and from the October 2021 subsidy claims as submitted by the approved authorities.

Any questions regarding the information reflected in the attached can be directed to the relevant approved Road Controlling Authority.

 

Attachments

Attachment 1: RTC Funding Uptake Report for April 2022 Meeting

Attachment 2: RTC Funding Uptake Report for April 2022 Meeting Graphs 1

Attachment 3: RTC Funding Uptake Report for April 2022 Meeting Graphs 2  

 

Authorised by Group Manager

Name:

Victoria Harwood, Pou Tiaki Hapori - GM Community Resilience,

Title:

Group Manager - Customer Services - Community Resilience

Date:

28 March 2022

 


Regional Transport Committee  ITEM: 5.1

5 April 2022Attachment 1

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Regional Transport Committee  ITEM: 5.1

5 April 2022Attachment 2

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Regional Transport Committee  ITEM: 5.1

5 April 2022Attachment 3

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Regional Transport Committee                                                                                                                                  item: 6.1

5 April 2022

 

TITLE:

Waka Kotahi Northland Activity and Funding update

From:

Steve Mutton, NZTA - Director Regional Relationships Upper North Island

Authorised by Group Manager/s:

Victoria Harwood, Pou Tiaki Hapori - GM Community Resilience, on 28 March 2022

 

Whakarāpopototanga / Executive summary

The New Zealand Transport Agency Waka Kotahi will provide an update report to the Regional Transport Committee.

 

Waka Kotahi’s focus in 2022 includes:

 

- Reviewing land transport revenue with the Ministry of Transport

- Updating emissions reduction and adaptation strategy

- Forging ahead with Road to Zero initiatives

 

•     public awareness campaign

•     Implementing the One Network Framework

•     speed management programme

•     safety camera transfer and expansion

•     vehicle safety rating updates

 

- Delivering the Waka Kotahi 2021-24 NLTP commitments

 

·    SH1 Whangarei to Wellsford Safety Improvements

·    NZUP Northern Package – Safety Improvements

·    Speed Review

·    SH10 Kaeo Bridge upgrade

·    SH1 Loop Road

·    Maintenance and Operations

·    Funding Update

·    Northland Projects Update

 

- Beginning planning for 2024-27 NLTP development.

 

Ngā mahi tūtohutia / Recommendation

That the report ‘Waka Kotahi Northland Activity and Funding update’ by Steve Mutton, NZTA - Director Regional Relationships Upper North Island and dated 21 March 2022, be received.

 

Background/Tuhinga

Steve Mutton, Waka Kotahi Director Regional Relationships, Te Tai Tokerau me Tāmaki Makaurau, will be speaking to this paper and presentation.

 

Attachments/Ngā tapirihanga

Attachment 1: Waka Kotahi Northland RTC Updates 220405   


Regional Transport Committee  ITEM: 6.1

5 April 2022Attachment 1




























Regional Transport Committee                                                                                                                                  item: 6.2

5 April 2022

 

TITLE:

Waka Kotahi Designing Driver Licencing Strategy report

From:

Steve Mutton, NZTA - Director Regional Relationships Upper North Island

Authorised by Group Manager/s:

Victoria Harwood, Pou Tiaki Hapori - GM Community Resilience, on 28 March 2022

 

Whakarāpopototanga / Executive summary

A multi-agency approach has been taken to ensure a whole of system view is considered, while also integrating work already underway at a national, regional, and local level to resolve inequitable barriers.

The Ministry of Transport (MoT), Police, Ministry of Social Development (MSD), Iwi representatives, and Community groups are all working to improve employment, road safety and justice outcomes. Waka Kotahi believe the together better societal outcomes can be achieved while improving the integrity of the graduated driver licensing system and contributing to Road to Zero objectives of fewer deaths and serious injuries on our roads.

The changes we make will seek to improve equity and enhance the safety of the land transport system for the benefit of all New Zealanders.

 

Ngā mahi tūtohutia / Recommendation

That the report ‘Waka Kotahi - Designing Driver Licencing Strategy’ by Steve Mutton, Waka Kotahi Director Regional Relationships, Te Tai Tokerau me Tāmaki Makaurau, and dated 23 March 2022, be received.

Background/Tuhinga

This report provides an update on activities Waka Kotahi NZ Transport Agency has undertaken or committed to that will improve access to the driver licencing system.

 

New Zealand introduced a graduated driver licensing system (GDLS) in 1987. The principal purpose of the GDLS is to manage the crash risk of drivers learning to drive in three licence stages – learner, restricted and full licence. It recognises age and experience are factors and allows these drivers to gain confidence and skills while their cognitive and risk assessment processes are still maturing. Restrictions reduce at each licence stage, allowing drivers to develop safer driving skills while minimising the risks they present and face.

 

Most people hold the class 1 (car licences); however, the process is also replicated through classes 2-5 (heavy vehicles) and class 6 (motorcycles).

 

A driver licence is intended to be a transport document, however today, it is more than just a permit to drive a vehicle, it has a range of social benefits attached to it and is an official form of identification for various transactions, including obtaining credit or buying alcohol.

 

Holding a valid driver licence and having access to a vehicle is often a necessity for personal and community mobility, access to employment, education, and training, and to social connections for individuals, family and whānau. This is especially true in areas where other transport options are not available, such as rural areas and where people have greater distances to travel.

 

Being transport disadvantaged is closely associated with a lack of access to, and the ability to legally drive, a private vehicle. The structure, delivery, and costs of the GDLS create barriers for some groups to access and progress through the GDLS, particularly those in higher levels of socioeconomic deprivation.

 

Not holding a valid driver licence can contribute to a range of other negative outcomes for the individuals involved and New Zealand overall. For example, driver licence offending (driving without a licence, breaching licence conditions etc.) can result in financial penalties and loss of licence, which in turn may hinder an individual’s ability to access or retain employment. These types of offences often become an individual’s first interaction with the justice system.

 

Improvements in 2021

Review of the GDLS

 

Te Manatū Waka, Ministry of Transport (MoT) and Waka Kotahi are currently working on options to progress legislative changes to aspects of the GDLS consulted on in 2019. Furthermore, Waka Kotahi has committed to improving the operation of the driver licencing system and increasing the equitable access to licences.

Driver testing services

 

Waka Kotahi concluded a review of driver testing services across the Waikato region in 2021. Following the completion of the review and operational considerations, the decision was made to re-introduce driver testing in Cambridge and Matamata to ease pressure on the existing sites in Hamilton (at Frankton and Te Rapa), Te Awamutu, Morrinsville and Tokoroa.

 

Waka Kotahi has a standard review process for driver testing sites that considers what locations would provide the most benefit and relief to a region, the accessibility of testing services, and the practicality and financial viability of providing services. The viability of driver testing services is based on applicant demand, traffic volumes, the roading network and testing locations.

 

Any region looking to have testing sites reviewed will have this approach applied. Northland testing services will be considered as part of the NZ Driver Licence Improvement Programme.

 

Time Limited Licences

A Rule change on 1 December 2021 removed the 5-year time limit for learner and restricted driver licences (back to 10 years as per the full licence), the 90-day restriction on licence renewal, and the requirement for the licence holder to re-sit and pass a theory test to renew their licence.

Despite efforts to encourage drivers to progress through the licence stages within five years, drivers have not moved to a higher licence stage for valid reasons, and this has had no clear benefit or impact on road safety. These changes allow drivers to gain the skills and confidence to progress to

the next licence stage at their own pace or stay at their stage if they choose to. They also make getting a licence more accessible by removing the cost, stress and anxiety that comes with having to renew a learner or restricted licence every 5 years and re-sit a theory test.

 

 

 

Driver licensing improvement programme

Access to a licence and road safety outcomes are intrinsically linked. The more licenced drivers there are, the safer our roads will be as drivers will be trained to drive safely.

 

Waka Kotahi is committed to increasing access to driver training and licensing to deliver better outcomes for New Zealanders. If we can improve access to a driver licence by reducing the barriers to entry and progression through the GDLS, the number of safe, licensed drivers on our roads should increase and open more employment and accessibility opportunities for individuals and communities. We are reviewing our operational strategy for the driver licensing system to improves access, content, costs and delivery of tests and the way they are administered.

Over the next five years we will improve the driver licencing system and increase the equitable access to licences, by exploring solutions and outcomes for vulnerable communities, partnering within communities to identify options that address individual as well as economic aspirations.

We will take a multi-agency approach to ensure a whole of system view is considered, while also integrating work already underway at a national, regional, and local level to resolve inequitable barriers.

 

While a long-term strategy and plan for the GDLS is being developed, we are looking to make some immediate improvements to address access and equity issues. Local initiatives are being identified in Te Tai Tokerau and Tairāwhiti that can be rolled out in other regions. Solutions being considered include increasing testing officers in the right locations, improving access to the driver testing booking system, addressing language and literacy barriers, and improving access to learning and practice resources.

 

The changes we make will seek to improve equity and enhance the safety of the land transport system for the benefit of all New Zealanders.

 

Attachments/Ngā tapirihanga

Nil


Regional Transport Committee                                                                                                                                  item: 6.3

5 April 2022

 

TITLE:

Northland to Auckland Four Lane Highway Update

From:

Steve Mutton, NZTA - Director Regional Relationships Upper North Island

Authorised by Group Manager/s:

Victoria Harwood, Pou Tiaki Hapori - GM Community Resilience, on 28 March 2022

 

Whakarāpopototanga / Executive summary

The government has instructed Waka Kotahi and KiwiRail to deliver a new option that focuses on safety improvements along the existing state highway, and the construction of a new rail line to Northport.

 

The current proposal to upgrade State Highway 1 to four lanes will not continue as part of the NZ Upgrade Programme. Therefore, the project has been renamed to NZUP - Northland Package.

 

An update to the joint Ministers (Finance and Transport) on the Northland package will be provided in March for direction. A final business case is expected to be presented to the Waka Kotahi board and Ministers in mid-2022 where they will consider the funding for this project from the total funding set aside for Northland road and rail projects.

Ngā mahi tūtohutia / Recommendation

That the report ‘Northland to Auckland Four Lane Highway Update’ by Steve Mutton, NZTA - Director Regional Relationships Upper North Island and dated 21 March 2022, be received.

 

Background/Tuhinga

The government has instructed Waka Kotahi and KiwiRail to deliver a new option that focuses on safety improvements along the existing state highway, and the construction of a new rail line to Northport. This means the current proposal to upgrade State Highway 1 to four lanes will not continue as part of the NZ Upgrade Programme. Therefore, the project has been renamed to NZUP - Northland Package.

 

Waka Kotahi and KiwiRail are currently working together to further develop the $692 million Northland package for consideration by ministers. The outcomes sought for the Northland Package include safety on State Highway 1 (SH1) and mode shift and economic growth by moving freight more efficiently by rail, in line with Government decarbonisation objectives.

 

On State Highway 1 Waka Kotahi are investigating upgrades to help people get where they need to go safely. Amongst the safety improvements being considered are installation of centre median barriers in the rural section, intersection improvements, traffic signals and provisions for walking and cycling in urban Whangārei.

Work continues with KiwiRail as they develop the Marsden Point Rail Link (“Northland Rail Spur”) business case. The detailed business case includes the preliminary design of the project, site investigation and assessment of geotechnical risks, commercial modelling, and engagement with Waka Kotahi to ensure the final scope fits within the total Northland NZUP funding envelope. KiwiRail is 45% (60 of 133 hectares) of the way through the land acquisition programme to secure the rail corridor for the new Spur.

Background note - Northland Rail

The Government is progressing two rail projects in Northland through the New Zealand Upgrade Programme (NZUP).

The NZUP Northland Rail Package comprises of:

•     the Whāngarei to Otiria project - upgrading the line to an 18-tonne axle capability and providing system improvements including yard/container transfer sites and log loading areas, and

•     the Marsden Point Rail Link project - establishing a rail link between Northport and the North Auckland Line (NAL), providing increased opportunity for freight transfer from road to rail.

 

Attachments/Ngā tapirihanga

Nil


Regional Transport Committee                                                                                                                                  item: 6.4

5 April 2022

 

TITLE:

Northland Road Safety Update

From:

Ian Crayton-Brown, Transport Projects Officer and Chris Powell, Transport Manager - Northland Transportation Alliance

Authorised by Group Manager/s:

Victoria Harwood, Pou Tiaki Hapori - GM Community Resilience, on 28 March 2022

 

Whakarāpopototanga / Executive summary

This report serves to update the Regional Transport Committee (RTC) on the progress regarding Northland’s evidence-based road safety issues since the 8 December 2021 RTC meeting. 

Ngā mahi tūtohutia / Recommendation

That the report ‘Northland Road Safety Update’ by Ian Crayton-Brown, Transport Projects Officer and Chris Powell, Transport Manager - Northland Transportation Alliance and dated 22 March 2022, be received.

 

Background/Tuhinga

 

ROAD SAFETY UPDATE

Road Trauma Update

Comparisons of crash fatality statistics for 2020 calendar year compared to the same period in 2021.

1 January – 31 December 2020 - Road Fatalities Statistics

Fatalities Jan – Dec 2020

Far North

Whangārei

Kaipara

Northland

National

Local roads

7

7

1

15

153

State highways

5

7

0

12

165

TOTAL

12

14

1

27

318

 

1 January – 31 December 2021 - Road Fatalities Statistics

Fatalities Jan – Dec 2021

Far North

Whangārei

Kaipara

Northland

National

Local roads

4

3

4

11

178

State highways

7

8

7

22

142

TOTAL

11

11

11

33

320

 

Comparisons of crash fatality statistics for 1 January to 20 March 2021 compared to the same period in 2022.

 

 

1 January – 20 March 2021 - Road Fatalities Statistics

Fatalities Jan – Mar 2021

Far North

Whangārei

Kaipara

Northland

National

Local roads

1

0

1

2

38

State highways

3

1

1

5

31

TOTAL

4

1

2

7

69

 

1 January – 20 March 2022 - Road Fatalities Statistics

Fatalities Jan - Mar 2022

Far North

Whangārei

Kaipara

Northland

National

Local roads

0

1

0

1

41

State highways

0

1

1

2

29

TOTAL

0

2

1

3

70

 

This year-to-date total Northland road fatalities have halved compared to the same timeframe in 2021.

 

Motorcycle Safety - Ride Forever (R4E) Rider Training Update -

·    R4E – 2020/2021 – 186 riders completed the courses  (July 2020-June 2021)

·    R4E – 2021/2022 – 111 riders have completed the courses to date 01/07/2021 to 31/03/2022:

51 Bronze Course

35 Silver Course

25 Gold Course

Motorcycle Safety: Northland Motorcycle Safety Strategy

·    Preliminary work is still under way to progress this initiative which focuses on identifying unsafe motorcycle routes and infrastructure required to improve safety for the increasing numbers of motorcycles using Northland roads. A literature search and analysis of motorcycle crash data is helping develop a better understanding of the problems and possible affective interventions to further improve safety for motorcyclists.

·    The literature search will highlight the importance of the role that a ‘Safe System Approach’ makes, together with continually improving the roading standards and quality which the KiwiRap model seeks to achieve by improving road safety ratings to Class 3 or better. 

See Attachment I or for more information regarding KiwiRAP, or please refer to the following link.

http://www.kiwirap.org.nz/index.html

 

 

Northland Road Safety Forum & Northland Freight Group Meetings Postponed

Both the Road Safety Forum and Freight Group quarterly meetings have again been postponed affected by access & meeting restrictions due to COVID.   


Northland Road Safety Association Driver Reviver/Fatigue Stops

A northbound Driver Reviver Stop is scheduled for Easter, Thursday 14 April 2022. A decision will be made closer to the event date whether this will go ahead. This fatigue stop will be supported by IAG Insurance, a new road safety partner.


Waka Kotahi Road Safety Promotion/Media Themes for March & April 2022

Road safety promotional and media related themes for the above-mentioned months will concentrate around:

·    Drugs, Distractions, Speed, Safe Vehicles.

At the local level, Northland continues to utilise radio, print and other social media to provide road safety messages specific to Northland, whilst complimenting the ‘Road to Zero’ and ‘Safe System Approach’.

‘’Seatbelts On’’ Messaging and Promotion

Planning is underway with the Northland Rugby Union (NRU) and the New Zealand Police to work in partnership promoting the ‘Seatbelts On’ message. In previous years, the campaign included the ‘Seatbelts On’ message on the back of the National Provincial Championship (NPC) team shorts.

This message was also used on face masks, tote bags and a ‘Bus Back’ incorporating the popular Taniwha image. The NRU have also used their social media platform to help promote road safety messaging.

 

 

Regional Road Safety Contracts

 

Reflected in the “Regional Road Safety Snapshot” is a brief description of what contracts the Northland Transportation Alliance road safety partners have been concentrating on. These partners are: -

 

·    Far North Reap.

·    Northland Road Safety Trust (Kaipara and Whangarei).

·    Bike Northland.

 

 

 


 



 

 


A representative from the New Zealand Police will be providing an update at the meeting.

See Attachment I for a copy of the New Zealand Police presentation.  

 

A Representative from the Northland Transportation Alliance will be presenting on the work being undertaken on the Regional Road Safety Action Plan Related Speed Limit Reviews

 

See Attachment II for a copy of the Speed Limit Review presentation.

  

 

 

Attachments/Ngā tapirihanga

Attachment 1: KiwiRap Star Rating

Attachment 2: New Zealand Police RTC Presentation - April 2022

Attachment 3: Road Safety Action Plan Speed Limit Reviews - April 2022   


Regional Transport Committee  ITEM: 6.4

5 April 2022Attachment 1

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Regional Transport Committee  ITEM: 6.4

5 April 2022Attachment 2





Regional Transport Committee  ITEM: 6.4

5 April 2022Attachment 3




Regional Transport Committee                                                                                                                                  item: 7.1

5 April 2022

 

 

 

 

TITLE:

Te Huringa Taraiwa: Te Arotake I Te Punaha Utu Kaiwhakamahi Rori/Driving Change: Reviewing the Road User Charges System

From:

Chris Powell, Transport Manager - Northland Transport Alliance

Authorised by Group Manager/s:

Victoria Harwood, Pou Tiaki Hapori - GM Community Resilience, on 28 March 2022

 

Executive summary/Whakarāpopototanga

The Ministry on Transport (MoT) is seeking feedback on the proposed changes to the present Road User Charge (RUC) system through its Te Huringa Taraiwa: Te Arotake I Te Punaha Utu Kaiwhakamahi Rori/Driving Change: Reviewing the Road User Charges System.

 

This report serves to provide a summary on what is being reviewed and concludes with a recommendation that the Regional Transport Committee make a written submission on the proposals.

 

Recommendation(s)

1.         That the report ‘Te Huringa Taraiwa: Te Arotake I Te Punaha Utu Kaiwhakamahi Rori/Driving Change: Reviewing the Road User Charges System’ by Chris Powell, Transport Manager - Northland Transport Alliance and dated 22 March 2022, be received.

2.         That the Northland Regional Transport Committee delegate to representatives of the Northland Transportation Alliance to compile a draft regional submission on the Committees behalf based on the recommendations made in Attachment II.

3.         That the draft submission be circulated to all elected members for comment.

4.         That a final submission be compiled incorporating agreed changes and this be circulated to the Regional Transport Committee members for final approval.

5.         That the Chair of the Regional Transport Committee be given authority to make minor formatting and grammatical changes and sign the final submission prior to the document being sent to the Ministry of Transport before the consultation closing on 22 April 2022.

 

Options

No.

Option

Advantages

Disadvantages

1

The Regional Transport Committee make a written submission on the ‘Te Huringa Taraiwa: Te Arotake I Te Punaha Utu Kaiwhakamahi Rori/Driving Change: Reviewing the Road User Charges System

That Northland has the opportunity to have a say on one of the most important sources of revenue for land transport.

None

2

The Regional Transport Committee does not make a written submission on the ‘Te Huringa Taraiwa: Te Arotake I Te Punaha Utu Kaiwhakamahi Rori/Driving Change: Reviewing the Road User Charges System

None

That Northland loses the opportunity to have a say on one of the most important sources of revenue for land transport.

 

The staff’s recommended option is Option 1

Considerations

1.         Environmental Impact

The environmental impact can only be fully assessed when a final decision is made by government on what course of action they wish to follow.

2.         Community views

Consultation on the Te Huringa Taraiwa: Te Arotake I Te Punaha Utu Kaiwhakamahi Rori/Driving Change: Reviewing the Road User Charges System is being undertaken by the Ministry of Transport and is open to all for comment.

3.         Māori impact statement

No impacts to Māori have been identified at this early stage.

4.         Financial implications

The financial implications can only be fully assessed when a final decision is made by government on what course of action they wish to follow.

5.         Implementation issues

No implementation issues have been identified at this early stage.

 

6.         Significance and engagement

No significance and engagement issues have been identified at this early stage.

7.         Policy, risk management and legislative compliance

No policy, risk management or legislative compliance issues have been identified at this early stage

Background/Tuhinga

Road User Charges (RUC) imposes charges on RUC vehicles for their use of the roads that are in proportion to the costs that the vehicles generate.

Since its introduction in 1978, RUC has been updated and simplified several times to allow for technological advancements and to modernise the system. It needs to be able to adapt to changes in technology and changes in the transport sector, such as the increasing importance of light vehicles to RUC revenue and the increasing use of fuels other than petrol and diesel.

Under the Road User Charges Act 2012 (RUC Act), operators of all vehicles that do not use a fuel that is charged fuel excise duty (FED) (primarily diesel vehicles), or heavy vehicles with a gross vehicle mass (GVM) greater than 3.5 tonnes (primarily trucks, buses and some trailers), are subject to RUC.

Currently, almost all RUC vehicles are diesel powered vehicles, but vehicles using other fuels such as electricity, hydrogen and biodiesel are also subject to RUC. Light Electric Vehicles (EV) (mainly cars) are currently exempt from paying RUC until 31 March 2024 and heavy EVs (trucks and buses) are exempt until the end of 2025 as part of existing measures to encourage people to buy and use them.

The Ministry of Transport (MoT) also want to consider whether RUC should be able to address wider Government priorities and not focus solely on recovering direct costs.

Chart, sunburst chart

Description automatically generatedIn the 2020/21 financial year, RUC contributed nearly $2 billion in revenue to the National Land Transport Fund (NLTF) out of a total of $4.3 billion. Of this the operators of the 800,000 light RUC vehicles purchased approximately $800 million in RUC licences, while the operators of the 190,000 heavy vehicles (including trailers towed by heavy vehicles) purchased $1.1 billion. The owners of roughly 3 million light petrol vehicles contributed around $2.1 billion in FED and another $230 million was collected in registration and license fees.

The last major suite of amendments to the RUC Act were made in 2012. In the intervening years the number of light diesel vehicles subject to RUC has increased significantly and these are often operated by private motorists, rather than companies. Heavy diesel vehicles, which are mainly operated by companies, remain the core of the scheme, but are now only responsible for around sixty percent of RUC revenue. Light diesel vehicles, which now make up 20 percent of the light vehicle fleet, contribute the other 40 percent of RUC revenue. Once the light Electric Vehicles (EV) RUC exemption ends on 31 March 2024, and heavy EV RUC exemption ends on 31 December 2025, owners of EVs will also pay RUC in ever increasing numbers.

Chart, line chart

Description automatically generatedThe current RUC legislation is focussed on recovering the costs of damage to our road network, especially that caused by heavy vehicles, and ensuring that operators of vehicles that cause the damage pay the appropriate amount.

This approach remains key, but the current system does not recognise other costs imposed by vehicle use, such as pollution or congestion. There is a growing interest in using the RUC system to also capture some of those other costs, or to offset the higher costs faced by some emerging technologies, ahead of their widespread adoption.

 

The transport system creates significant social and economic benefits but also many costs.

Diagram, text

Description automatically generated

 

The Government is progressing policies to support these outcomes by developing programmes that focus on road safety, vehicle emissions, regulatory development, and smart infrastructure investments. The RUC system could also potentially support these outcomes

Currently the RUC legislation provides for the setting of RUC rates to be in proportion to the costs that the vehicles generate. These costs have historically been limited only to the direct costs of damage caused by the vehicles’ use of the roads, along with the wider costs of building and maintaining the transport system.

 

Proposed Changes to the RUC

Contained in the ‘Te Huringa Taraiwa: Te Arotake I Te Punaha Utu Kaiwhakamahi Rori/Driving Change: Reviewing the Road User Charges System’ are a number of proposed changes to the present system.

A copy of theTe Huringa Taraiwa: Te Arotake I Te Punaha Utu Kaiwhakamahi Rori/Driving Change: Reviewing the Road User Charges System’ can be sourced through the following link: -  https://www.transport.govt.nz/assets/Uploads/RUCDD-2022.pdf

See Attachment I for a copy of the Summary document titled “Driving Change: Reviewing the Road User Charges System”.

The list of questions being asked by the MoT are provided in Attachment II

 

Regional Transport Committee Submission

The Te Huringa Taraiwa: Te Arotake I Te Punaha Utu Kaiwhakamahi Rori/Driving Change: Reviewing the Road User Charges System contains 89 questions relating to the subjects covered.

Based on the above, it is recommended that the Regional Transport Committee makes a written submission which reflects a regional perspective.

The proposed body of the submission is provided in Attachment III

 

Consultation period ends on 22 April 2022.

 

 

 

Attachments/Ngā tapirihanga

Attachment 1: Attachment I

Attachment 2: Attachment II

Attachment 3: Attachment III  

 


Regional Transport Committee  ITEM: 7.1

5 April 2022Attachment 1

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Regional Transport Committee  ITEM: 7.1

5 April 2022Attachment 2

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Regional Transport Committee  ITEM: 7.1

5 April 2022Attachment 3

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