Delivering within a strained funding system

Our current funding system is constrained due to the combined impact of past under-investment in asset management, inflationary pressures on costs and more frequent extreme weather events. At the same time, accelerated decarbonisation of the transport system and growing urban congestion require step changes from past levels of investment.

Over the last year, due to our funding constraints we focused on investing in critical road maintenance, responding to emergency events and completing construction projects that were already under way. As a result, the outputs from the 2021–24 NLTP will be well below those originally planned with many projects delayed or deferred. This funding outlook highlights the importance of the Land Transport Revenue Review, led by Te Manatū Waka and The Treasury. Ensuring an effective response to the review, completed during 2022/23, is critical to supporting an effective and sustainable land transport system, now and in the future.

Monitoring the condition of the state highway network

The state highway network is one of the country’s most important and valuable assets, connecting people and products across the motu. As asset manager for the network, we know the condition of the network and that it needs to improve.

The network has grown over recent years and is ageing, with more of the network reaching replacement age due to the impact of deferred maintenance and our constrained funding system. There is also increased demand on the network due to population growth and heavier vehicles, and networks have been considerably affected by severe weather events.

Together, these factors mean the condition of the state highway network is declining and significant maintenance and renewal work is required if the network is to support the current and future needs of the land transport system. This work will take several years and require further investment.

Partnering and engaging with Māori

Te Ara Kotahi, our Māori strategy, provides the strategic direction to guide how we work with and respond to Māori as the Crown’s Tiriti partner. In 2022/23, this included partnering to improve Māori road safety outcomes through the driver licensing schemes in Te Tai Tokerau Northland and Tairāwhiti Gisborne.

Over the last year, we continued to partner with Te Mātāwai on He Tohu Huarahi Māori Bilingual Traffic Signs Programme, resulting in the release of a package of 94 signs for consultation in May 2023. The programme captured the views of iwi and Māori through Ngā Pae Motuhake o Te Mātāwai, the community-based panels of Māori language, experts, practitioners and champions, as well as engaging with Māori partnership staff in local councils and the traffic industry.

To support our continued focus on creating more opportunities for partnership with Māori and doing more in our commitment to give effect to te Tiriti, we are improving our own capability. We’ve committed to the cross-agency Whāinga Amorangi Programme and continue to be the highest subscriber across government to workshops run by Te Arawhiti on engagement with Māori and Māori planning.

Accelerating digital

We are using our digital and data capabilities and leveraging emerging technologies to change the way we deliver services to our customers. We have two major digital projects under way: the expansion of the safety camera network and development of the country’s first integrated public transport ticketing system. These projects will put in place modern and fit-for-purpose systems focused on the needs of our customers, and support our major behaviour change programmes, such as road safety, climate change and mode shift.

Investment in our internal digital capability is also needed to upgrade ageing platforms, better integrate our systems and allow our people to work smarter and more efficiently. Several of our critical systems are no longer fit for purpose and require updating through our Technology Remediation Programme, so they are current, supported and secure and have built-in redundancy.

Strengthening our organisational foundations

Since Te Kāpehu was launched in 2020, our role and the expectations of what we deliver have changed. In 2022/23, we identified the main organisational shifts – our kāhui whetū (guiding stars) – we need to make to deliver on Te Kāpehu. They cover the areas of culture and leadership, future focus, accelerating digital and delivery excellence.

To strengthen our organisational foundations, we need a highly engaged organisational culture built on great leadership and teams, shared values and effective partnerships. Over the last year, we developed Pā Harakeke, our new people capability framework, which has an initial focus on leadership; launched our first pay gaps action plan; and continued to support an inclusive culture, including helping our people connect through our five employee-led networks and running events and activities for important awareness events.