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Planning Committee Meeting Held on 4/02/2020

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Planning Committee Meeting Held on 4/02/2020 Memorandum 20 December 2019 To: Planning Committee Independent Māori Statutory Board Subject: The Draft New Zealand Rail Plan From: Ryan Falconer Lead Transport Advisor Contact information: [email protected] Purpose 1. To provide an overview of the background to and content of the Draft New Zealand Rail Plan (the Plan), and analysis of preliminary implications of this Plan for Auckland Council and Auckland Transport. 2. To provide advice on the relevance of the Plan to Auckland and recommend providing informal feedback to the Ministry of Transport in advance of formal engagement in 2020. Summary 3. The Draft National Rail Plan provides context for proposed reform of rail network planning and investment in New Zealand, integrating rail with the balance of the land transport system and establishing a funding basis from the National Land Transport Fund. 4. The Plan is being publicised simultaneously with proposed legislative change (related amendments to the Land Transport Management Act 2003 and Land Transport Act 1988). This proposed legislative change is addressed in a separate Planning Committee memorandum. 5. The Plan emphasises the planning, funding and operations of both Auckland and Wellington’s metropolitan rail networks and prioritises addressing the needs of both passenger and freight traffic. 6. The Government has invited informal comments on the Plan. The Plan will be out for formal public engagement, alongside the Government Policy Statement on Land Transport, in 2020. However, the Government has invited informal feedback on the plan prior to this. Staff propose providing informal feedback to the Ministry of Transport in January in accordance with the points raised in this memorandum. 7. While the Ministry of Transport has sought and received input from Council staff during preparation of the Plan, the informal feedback period is another opportunity for Council to address matters of importance to Auckland. These include alignment between national rail planning and the Regional Land Transport Plan, and track access agreements. Context 8. The main purpose of the Draft New Zealand Rail Plan is to provide context for a long-term planning and funding system for rail in a manner relatively consistent with other forms of land transport. It will inform the development of the next Government Policy Statement on Land Transport (GPS) and future budget decisions. The Plan is attached (Attachment one). 9. Since the 1980s, rail planning has been ad hoc and most funding for the nationwide network was made in the form of grants from the Crown. Government applied a strategy of “managed” decline of the national rail network until quite recently. In the 2010s, reinvestment in metropolitan rail has been precipitated by Auckland Council, Auckland Transport and the New Zealand Government, and proposed in the Auckland Transport Alignment Project (ATAP). The current Government Policy Statement for Land Transport (GPS) and National Land Transport Plan (NLTP) include provision for $376M of funding in transitional rail projects; however, this Activity Class is oversubscribed (i.e. there are more projects than funding available). 10. The Plan is a non-statutory document articulating a 10-year vision for rail and a series of planning and investment priorities. The priorities for Auckland’s metropolitan rail networks, articulated in ATAP, are reflected in the Plan. The Plan does not, however, incorporate a complete list of projects that are being considered for investment, nor does it provide funding certainty. 11. Simultaneously with the release of the Plan, the Government initiated legislative change to implement reform. The Land Transport (Rail) Legislation Bill is an omnibus Bill introduced to amend the Land Transport Management Act 2003 and Land Transport Act 1998, enabling establishment of the planning and funding framework for the heavy rail track network for the long term. The Bill is at the Select Committee stage and the formal submissions period commenced on 19 December with closure on 7 February 2020. Staff recommend that Auckland Council submits on this Bill and a separate Planning Committee memorandum deals with this. 12. Over the last 18 months, the Ministry of Transport has engaged intermittently with Auckland Council and Auckland Transport staff regarding rail reform. In the third quarter of 2019, staff were provided with early draft copies of the Plan for review and comment. Much of the feedback provided, including elevating the importance of metropolitan rail passenger operations and priorities and ATAP, was adopted by the Ministry of Transport and is reflected in the draft Plan. 13. Immediate priorities include the third main line between Wiri and Quay Park, Papakura to Pukekohe electrification, accelerated renewals, a new Auckland train control centre, additional rolling stock procurement and associated stabling, cleaning and maintenance facilities, remodelling of Britomart East, and level crossing upgrades and removals. 14. On 22 November, Auckland Council staff summarised a range of issues associated with the reform process in a memorandum to the Chief Executive and Chief of Strategy. This is provided separately for information (Attachment two). 15. Auckland Council can now review and comment further on the Plan in advance of formal engagement, which is proposed for March 2020, concurrently with the draft GPS. Staff recommend that Auckland Council takes the opportunity to provide informal feedback early in the new year given more recent conversations with the Ministry of Transport pertaining to aspects of the proposed rail planning, approvals and funding processes, and possible implications for track access and user charges. Discussion 16. The Plan articulates the strategic challenges and priorities for rail in New Zealand. The main issues particular to Auckland’s metropolitan rail network are well defined with some exceptions (see below). Risk of discontinuities between the RLTP and RNIP 17. The particulars of reform proposed to the rail planning and funding framework are articulated in the omnibus Bill and will be reflected in the Rail Network Investment Programme (RNIP) giving effect to the new legislation, if enacted. Auckland Council and Auckland Transport staff have reservations regarding aspects of the framework as they pertain to project definition, prioritisation and decision-making, and track access and charges. These reservations are addressed in the memorandum relating to the omnibus Bill; however, the causes for these reservations should also be acknowledged in the Plan. Risks of impacts from track-user charges reforms 2 18. Page 10 of the Plan discusses ownership and operations of Auckland and Wellington’s metropolitan rail networks. Staff propose that content is added to this section of the Plan acknowledging that there are existing track access agreements that provide cost- and access- certainty for both Auckland Transport and Greater Wellington Regional Council. These certainties are essential for metropolitan rail passenger operations being fulfilled. 19. Similarly, staff propose that the provision of sufficient network capacity to fulfil both freight and passenger operations, while respecting existing access agreements, are matters of national significance and should be articulated as such. 20. On pages 21 and 22 of the Plan, the New Zealand Transport Agency (NZTA) needs to assume responsibility explicitly for advising the Minister for Transport how the proposed rail investment programme reconciles with Regional Land Transport Plans (RLTP). According to the planning and funding framework proposed, the RLTP will have been approved when the rail investment programme is assessed, finalised and approved (see memorandum relating to the omnibus Bill). 21. The footnotes to page 22 of the Plan include that “The intention is not to make changes to these arrangements [track access agreements] in the near term.” This is an insufficient level of comfort and certainty for Auckland Council and Auckland Transport given the importance of these agreements for operation of the metropolitan rail network and our longer-term network and growth planning. 22. On page 32 of the Plan, the increasing conflict is acknowledged between freight and passenger operations on Auckland’s and Wellington’s metropolitan rail networks. This acknowledgement should extend to include that existing track access agreements provide cost- and access- certainty for both Auckland Transport and Greater Wellington Regional Council. Further comments 23. Page 15 of the Plan defines KiwiRail’s role as a State-Owned Enterprise (SOE). KiwiRail also fulfils a critical public agency role and this should be defined. 24. There are several references in the Plan to the potential for improved planning and rail investment to reduce carbon emissions from the transport sector, relative to relying on road transport to convey passenger and freight traffic. This is consistent with Auckland Council’s declaration of a climate emergency. 25. Staff propose, however, that further electrification of the rail network should not be a post-2031 priority (page 31) given the Government’s enactment of the Zero Carbon Act. Next steps 26. The Government has invited informal feedback on the Plan ahead of its formal consultation in 2020 alongside the GPS. Given the opportunity to address matters of importance to Auckland, staff propose that informal feedback be provided in January in accordance with the points raised in this memorandum. 27. Staff are happy to
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