Minister of Transport Four Year Plan for the Transport Sector 2014
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Minister of Transport Four Year Plan for the Transport Sector 2014 6 December 2013 2 Contents Overview of the Plan – Key messages p.5 The Four Year Plan Section 1 – Delivering on the Government’s priorities p.10 What the Ministry and Crown entities will deliver over the next four years p.10 Section 2 – Strategic context for transport p.14 The importance of transport to a thriving New Zealand p.14 The government transport sector operates with a common outcomes p.15 framework Longer term issues for transport p.18 Section 3 - Managing the financial and investment issues p.21 The transport sector’s funding arrangements p.21 Government Policy Statement on Land Transport p.22 Managing land transport revenue issues p.25 Crown entity fees, charges and levies reviews p.28 The Government’s Budget decisions for 2014 and outyears p.30 Cost savings and opportunities for reprioritisation with the transport sector p.33 Section 4 – Leadership and co-ordination p.34 How the Ministry leads and provides leadership and co-ordination for the p.34 transport sector How the Ministry and Crown entities are building capability, improving p.36 business processes and delivering better value for money Key risks for the sector p.40 Monitoring the transport sector’s performance against this plan p.41 Section 5 - Annexes p.45 3 provider Airways KiwiRail MetService information services Provision of weather of Provision weather Air navigation service navigation service Air Rail owner and operator State Owned Enterprises State sector transport government The 1: Figure rail occurrences rail Transport Accident Transport Board Commission of Inquiry into selected aviation, maritime and aviation, maritime selected Investigation Commission Investigation Funder Service provider Service Safety Regulator Sector leadership Board Enabler of economic activity NZ Agency NZ Transport Minister of Transport Transport Crown Transport Entities Authority Safety regulator Service provider Service Sector leadership Civil Aviation Aviation Civil Board Enabler of economic activity Wider transport sectorrole (by mode) Wider leadership transport Sector leadership Policy adviser to government Policy Ministry of Transport Ministry Governance &accountability supportGovernance Zealand Zealand Safety regulator Service provider Service Sector leadership Maritime New Board Enabler of economic activity 4 4 OVERVIEW OF THE PLAN – KEY MESSAGES A Four Year Plan for the government transport sector 1. This Four Year Plan sets out the key fiscal and investment issues the government transport sector will manage and the work programme the sector will deliver over the next four years. The plan has a strong focus on the Ministry of Transport, and also addresses issues relating to the four transport Crown entities1. It also includes the three State Owned Enterprises2 that are involved in the transport sector, where there are relevant financial issues. Strategic direction and alignment with Government priorities 2. The government transport agencies have an agreed long term sector goal and outcomes that they work towards. The sector is also guided by the strategic direction provided through document including Connecting New Zealand, Safer Journeys Road Safety Strategy and the draft Intelligent Transport Systems Action Plan. Transport agencies have a clear alignment to the Government’s priorities, and key deliverables over the next four years include: Government Policy Statement on Land Transport 2015 Roads of National Significance programme Auckland transport package implementation of the Safer Journeys Action Plan negotiation of international air services agreements implementation of new risk-based regulatory approaches Sector leadership and performance improvement 3. The Ministry will play a critical role over the next four years in ensuring all the government’s transport agencies are capable, effective and efficient in delivering the results required of them. The Ministry’s role in sector leadership and performance improvement includes the following elements: leading sector-wide work on the common outcomes framework, understanding of the Government’s priorities and the implications of these for individual transport agencies governance and monitoring oversight– supporting the Minister to set appropriate expectations for the Crown entities and to hold them accountable for their performance ensuring the implementation of a major regulatory reform programme across the sector to support Better Public Services 1 Civil Aviation Authority, Maritime NZ, NZ Transport Agency and Transport Accident Investigation Commission 2 Airways, KiwiRail and MetService 5 co-ordinating sector activity (where agency roles mean this is appropriate) through groups such as the National Road Safety Committee, and the New Zealand Search and Rescue Council leading strategic policy development for the transport sector (including the Intelligent Transport Systems Action Plan) Managing investment and other financial issues over the next four years 4. The plan also sets out the Government’s investment and other financial decisions over the next four years. The Ministry has enhanced the level of scrutiny that is applied to all Budget and non-Budget investment and other financial proposals to ensure they are appropriate and provide value for money. Table 1 (page 7) provides an overview of the investment and other financial decisions for the next four years. 5. The Government Policy Statement on Land Transport is the government’s major funding lever (approximately $3 billion a year) to influence the land transport system. The Statement is a statutory document that takes an explicit 10 year approach to investment, and applies it consistently to central and local government. The Statement allocates funding to activity classes in ranges, for 3 year tranches, within that 10 year window. The Ministry is undertaking significant analysis to support Government decisions in early 2014, for the 2015 Statement. 6. The Crown entities are primarily funded through third party sources (fee, charges and levies). Crown entity funding reviews are, therefore, the primary mechanism through which the government makes decisions on value for money and whether to fund capability or services. The Four Year Plan seeks to provide assurance to Ministers that these processes are being managed in a robust manner. 7. Other significant investments by government are typically only made through Vote Transport where road or other users may not be the appropriate source of funding. For example, the KiwiRail Turnaround Plan (where Treasury is the policy adviser, and Vote Transport the funding mechanism), the Auckland transport package (where government will make decisions that will be actioned through Vote Transport) and SuperGold Card (where Vote Transport is the vehicle used to give effect to a social policy decision). 8. The key financial and investment decisions for the next four years are set out in Table 1. 6 Table 1: Financial and investment decisions to be taken Key financial and investment decisions that will be made over the next four years within the transport