Transport
Page updated 28 May 2009
Overview of Treasury information, research and policy publications about transport in New Zealand and Government expenditure on transport.
The Treasury's Role
The Treasury provides "second opinion" advice on a wide range of transport policy issues, as well as "first opinion" strategic advice on transport sector design and funding. We work closely with the Ministry of Transport and other transport agencies to ensure the transport sector contributes to the economic growth of New Zealand.
The Treasury also plays a key role in the monitoring of Air New Zealand, of which the New Zealand Government is the principal shareholder.
Funding
Since July 2008 all revenue obtained from roading user charges; Fuel Excise Duty on petrol sales; Road User Charges on diesel vehicles and Motor Vehicle Registration charges is dedicated towards land transport activities. This revenue accounts for approximately 70% of Vote Transport spending. Transport investment funded from user charges is forecast to increase by $283 million over the next three years, with state highway spending forecast to account for nearly $10.7 billion of transport expenditure over the next ten years. In February the Government also provided an additional $142.5 million of funding for the Transport Sector as part of the fiscal stimulus package. This funding is to accelerate the construction of five large projects and a number of smaller transport projects.
The most notable change to Vote Transport since Budget 2008 is the inclusion of rail funding which formerly sat within Vote Finance. This will make the Ministry of Transport responsible for over $770 million of rail funding in 2009/10, some of which was previously managed by the Treasury and Minister of Finance. Investment in rail has also increased since Budget 2008 with increased funding for metro rail, rail network upgrades, and an operating subsidy and loan facility for the New Zealand Railways Corporation.
The majority of Vote Transport funding is administered by the New Zealand Transport Agency. The Agency is charged with giving effect to the recently amended Government Policy Statement on Land Transport Funding (GPS) in the development and administration of the National Land Transport Programme (NLTP). The GPS provides a framework for the Agency to make funding decisions in the development of the NLTP and target NLTP expenditure on transport activities in the 2009/10 year is $2.8 billion. The remaining funding in Vote Transport is split between to the New Zealand Railways Corporation, the Ministry of Transport and other Crown Entities in the sector (Civil Aviation Authority, Maritime New Zealand and The Transport Accident and Investigation Commission).