NZ Transport Agency Waka Kotahi (NZTA) has reviewed the emergency works investment policies, including funding assistance rates (FARs) relating to work categories 141 – emergency works and 140 - minor works.
Emergency works FAR
In 2024, the NZ Transport Agency (NZTA) sought feedback from approved organisations (AOs) on proposed changes to enhanced funding assistance rates (FAR) for emergency works for response to and recovery from more frequent and larger events.
After considering feedback from AOs on these proposals, the NZTA Board has decided not to make changes to the current policy during this 2024-27 National Land Transport Programme (NLTP) period.
In the meantime, as part of the development of the 2027-30 NLTP, NZTA will both consider how to incentivise AOs to invest in maintenance and resilience programmes to increase the overall resilience of the road network and work with the Ministry of Transport on the development of the Government Policy Statement on land transport 2027.
The emergency works FAR policy will be revisited in the next NLTP period.
Other changes to our policies
In response to consultation feedback, we also made some additional changes to the policies’ wording in work categories 140 and 141 to further clarify the eligibility criteria.
Work category 140
Work category 141
Changes to work categories 140 and 141 [PDF, 543 KB]
For more information about the emergency works investment policies review, please check out our frequently asked questions.
Frequently asked questions [PDF, 248 KB]
NZTA would like to thank all those who provided feedback on the emergency works investment policies review.
Background to the review
The National Land Transport Fund (NLTF) helps fund emergency works at a normal FAR or enhanced FAR to ensure:
- an immediate response for public safety or to provide vital access and
- reinstatement of customer levels of service.
Over the past 10 years, the intensity, scale, and number of significant emergency events, including major weather events, have meant the NLTF provision for emergency works has been exceeded over multiple years. This has triggered NZTA’s review of the emergency works policies and FAR.
NZTA’s emergency works investment policies comprise:
WC 141: emergency works
WC 140: minor events
Uneconomic Transport Infrastructure Policy
The investment policies are supported by updated guidance and templates.
AO’s guidance
Scope of the review
In 2023/24 we initiated a review of our emergency works investment policies. The purpose of the review was to ensure emergency works investment policies are fit for purpose within the context of the likelihood of a continued increase in frequency and intensity of emergency events, and to ensure the ongoing sustainability of funding assistance via the NLTF, local government share and Crown funding sources for response, recovery and rebuild phases.
In scope
The scope of Phase 1 of the review up to April 2024 included:
- Assessment of current and future potential funding sources and parameters including FARs, criteria for a qualifying emergency event, consideration of insurance of an available fund.
- Review of investment operational policies, including work categories 141 and 140, definitions, alignment with LTMA, process changes, implications for planning.
- Review of the uneconomic transport infrastructure policy.
We sought feedback from approved organisations and stakeholders on our proposed changes to the emergency works investment policies.
The proposed changes were outlined in our consultation document.
Emergency Works consultation 2024 [PDF, 274 KB]
For an overview of the proposed changes please view the recording of our webinar:
Emergency Works webinar video - May 9, 2024(external link)
Webinar slide deck [PDF, 807 KB]
Phase 2 of the review started in June 2024 and included:
- Working with the Government on the potential for increasing borrowing facilities and/or Government support.
- Developing principles to guide use of different funding sources and their appropriateness for funding emergency works.
- Providing training or information to assist the sector in applying changes resulting from the review.
- Compiling a summary of feedback we received from the consultation [PDF, 189 KB]
- Running a webinar on 11 July 2024 to explain the changes we made to our emergency works process and policies.
The changes to process and policies made in Phase 2 came into effect on 1 July 2024.
Phase 3 of the review started in November 2024 and included:
- further targeted engagement with stakeholders
- finalising analysis of FAR options
- developing advice for the NZTA Board
- developing further policy changes to clarify the qualifying criteria for emergency works funding
- developing learning materials and guidance to explain these changes and how they’re applied
- updating the various processes and systems to support the policy changes.
Out of scope
The scope of the review excluded:
- heavy rail infrastructure and operations (addressed via the Rail Network Investment Programme (RNIP) with separate funding arrangements)
- development of an investment policy on managed retreat (the review will inform development of guidance relating to options for responding to significant damage to roading networks
- funding and investment decisions – the review did not include decision making on specific investments/funding of activities
- design of application, reconciliation audit or other operational procedures
- changes to the Land Transport Management Act.
Find out more about the review and case for change
Overview of review process and case for change [PDF, 157 KB]
Summary of existing state and desired future state
NZTA assessed the current state and future state to inform the review:
Current state
- policies can enable response and recovery
- networks lack resilience
- high damage/costs from frequent events
- variation in policy interpretation and application including unclear definitions
- processes are clear with flexibility
- reactive not proactive focus
- affordability challenges
- potentially not achieving value for money.
Future state
- policies enable response, recovery and resilience
- networks more resilient over longer term
- reduction in damage/costs from frequent events
- improved delineation between phases response, recovery, rebuild (clear definitions)
- policy and guidance easy to understand and apply
- clear and efficient processes
- proactive and reactive focus
- more predictable and sustainable funding
- better understanding of value for money and ways to achieve this.
Analysis of options relating to the FAR (including historic and projected impacts of different FAR)
We undertook an analysis of emergency expenditure over the past 10 years. This included looking at the frequency of events, and the financial impact on the NLTF against what had been allocated and broke this down by the type and frequency and expenditure.
This was supported by historic and projected impacts of the status quo (if current FARs were left unchanged) and the potential impacts of different FAR options. Options were tested with the project working group and steering group.
See a summary of key data and findings that informed the development of options
Supporting information and options analysis [PDF, 587 KB]
Summary of proposed changes to definitions, processes, and operational policies
As part of the review, NZTA has identified the following key changes to the policies for feedback. These are summarised as follows:
- Updates to work categories 140 and 141 to apply in the 2024-27 period (subject to any decisions on FAR).
- Adding fire to the list of qualifying events and, removing drought because it is not a sudden event.
- Use of updated definitions of response, recovery, rebuild, resilience, readiness.
- Link to definition of `like for like’ to clarify the distinction between costs of recovery and costs of improvement.
- Clarification of processes and planning including making it easier to apply for resilience improvements after an emergency event.
- Encouraging councils to include provision for emergency response and recovery in Regional Land Transport Plans to ensure they are ready if events occur.
- Update of the uneconomic transport infrastructure policy to:
- Better consider value for money alongside wider outcomes, including considering non-monetised benefits (for example social and cultural impacts) alongside a benefit cost ratio or net present value in a funding decision.
- Include a requirement that alternative funding sources are explored (for example Regional Infrastructure Fund, insurance, Tourism Infrastructure Fund, etc).
- Consider options for access or a different level of service.
- Consider community led retreat proposals, where relevant, in line with wider Government policy.
- Consider iwi/Māori access to ancestral lands, marae, pakakāinga and other sites of significance.
Proposed changes to work categories and investment policies [PDF, 292 KB]
Proposed emergency works definitions [PDF, 188 KB]
October 2024 FAQs [PDF, 287 KB]
