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Strategic Direction

The NZTA strategic direction

The NZTA's Investment and Revenue Strategy (IRS) communicates the NZTA Board's investment intentions. It's a high-level direction-setting and prioritisation tool that helps the NZTA to balance competing priorities and select the best possible mix of activities for funding - all with the goal of advancing progress against the objectives of the Land Transport Management Act 2003 (LTMA) and the Government policy statement on land transport funding 2009/19 - 2018/19 (GPS)(external link).

The Investment and Revenue Strategy aims to ensure that the NLTP gives effect to the GPS in the short to medium term and, in the long term, that the NZTA's investment decisions and business priorities are aligned with the outcomes and impacts specified in:

  • the LTMA
  • the NZTA's five strategic priorities, which are to: improve customer service and reduce compliance costs, improve road safety, freight efficiency and public transport effectiveness, and plan for and deliver roads of national significance.

Government expectations

The GPS is the government's statement that sets the strategic direction for investment in the land transport sector and provides funding ranges for individual 'activity classes'. The NZTA's role is to decide on the specific activities and combinations of activities in which to invest.

The GPS specifies a number of impacts that the government expects to achieve through the NLTP. These are:

  • impacts that contribute to economic growth and productivity:
    • improvements in the provision of infrastructure and services that enhance transport efficiency and lower the cost of transportation through:
    • improvements in journey-time reliability
    • the easing of severe congestion
    • more efficient freight supply chains
    • better use of the existing transport capacity
    • better access to markets, employment and areas that contribute to economic growth
    • a secure and resilient transport network
  • other impacts:
    • reductions in deaths and serious injuries as a result of road crashes
    • more transport choices, particularly for those with limited access to cars where appropriate
    • reductions in the adverse environmental effects of land transport
    • contributions to positive health outcomes.

NZTA investment priorities

Given the GPS's requirement that the NZTA focus on activities that make the greatest contribution to New Zealand's economic growth and productivity, this NLTP prioritises activities that make the most significant contribution to one or more of:

  • roads of national significance (RoNS) and local roads critical to RoNS
  • key freight and tourism routes
  • key urban arterials
  • public transport initiatives to ease severe congestion
  • 'model' urban walking and cycling communities¹
  • making better use of the existing transport infrastructure
  • optimising the existing capacity of, and service levels on, highly trafficked roads.

The priority given to RoNS, key freight and tourism routes, key urban arterials and model urban walking and cycling communities is new for the NZTA. Strategic plans are being developed for each of these areas and are due to be finalised by December 2009. They will provide the NZTA and those seeking NLTP funding approval with clear guidance on what will be prioritised and why. In the meantime, interim guidelines are in place.

In all its investments, the NZTA maintains its longstanding focus on activities that make a significant contribution to one or more of:

  • improving safety
  • relieving urban congestion
  • improving journey reliability and/or capacity on key routes
  • network security and resilience on key routes
  • completing key walking and cycling links to reduce congestion
  • providing transport choice in large urban areas
  • better public transport network and interchange capacity in large urban areas
  • managing adverse environmental impacts from land transport
  • public health outcomes
  • long-term, integrated and coordinated planning.

It's important to note that safety, particularly reducing the number of deaths and serious injuries as a result of road crashes, has always been and remains a core NZTA priority.

¹ Model communities aim to reduce congestion by providing user-friendly environments for walking and cycling

cycle lane

Assessment criteria

When approving funding for particular transport activities or groups of activities, the NZTA is required to ensure that they:

  • give effect to the GPS
  • take account of any relevant strategies or policies (eg regional land transport strategies)
  • contribute to the LTMA's purpose and objectives
  • have been assessed against other options and alternatives
  • comply with any consultation required by the LTMA.

The NZTA uses three key assessment criteria to determine whether a transport activity will be included in the NLTP and, if so, the degree to which it will be prioritised within the NLTP, and then whether it will be approved for funding. The criteria are:

  • strategic fit
  • effectiveness
  • economic efficiency.

Note the 'strategic fit' criterion is new to this NLTP, developed in response to the GPS. It replaces the 'seriousness and urgency' criterion used in previous NLTPs.

The prioritisation process gives the greatest weight to 'strategic fit', followed by 'economic efficiency' and 'effectiveness'. Each activity is given a rating of high, medium or low according to these criteria.

Strategic fit

'Strategic fit' ensures that the activities the NZTA approves for funding address significant opportunities and issues from a national perspective.

In assessing a transport activity for strategic fit, the NZTA considers how well it aligns with the Investment and Revenue Strategy's investment direction.

Effectiveness

The 'effectiveness' assessment is about a proposed investment's contribution to:

  • the purpose and objectives of the LTMA
  • achieving a particular outcome identified in the 'strategic fit' assessment.

Higher ratings go to proposals that provide long-term, integrated and enduring solutions.

Economic efficiency

'Economic efficiency' assessments apply to activities that deliver transport infrastructure or services. They identify how efficiently resources are used, how sustainable the benefits are, and whether the proposal represents value for money.

The NZTA assesses economic efficiency according to:

  • the benefit-cost ratio - for improvements
  • cost effectiveness - for maintenance, operations and public transport services.

Taking a long-term view

In developing the activities detailed in this NLTP, the NZTA has endeavoured to make the best use of the government's $8.7 billion, three-year investment in New Zealand's transport infrastructure and services.

Longer term, the primary focus for state highways will continue to be roads of national significance. In addition, the future investment direction for local roads and state highways will be influenced by regional and local planning, the Road Safety to 2020 Strategy and progress towards a more consistent and national approach to road maintenance standards.

For public transport services the future challenge is to improve the effectiveness of all the services in delivering value for money. In this regard, the NZTA will be implementing with its regional partners the new procurement procedures, develop a framework for fare box policies for all services, and explore ways in which integrated ticketing can be used to improve services and reduce costs.

The priority for 2009/12 and beyond for walking and cycling activities is to improve the contribution these activities make to the reduction of congestion in the main urban areas. This will be done by targeting investment at communities that have long-term commitment to significantly increasing walking and cycling as a practical and safe travel option.

And finally looking ahead for road policing funding, the main influence on the direction for this activity class will be the Road Safety to 2020 Strategy and broader discussions around what the most appropriate and effective roles of all the various agencies are.

The NZTA is committed to working closely with regional and local authorities, New Zealand Police and other land transport partners to manage the investment in all land transport activities and ensure a consistent and continual approach to meeting the objectives the government seeks.

This NLTP delivers a programme of well targeted investments in quality infrastructure and services that will benefit all New Zealanders. Implemented in the next three years, it will provide long-term benefits for both the transport network and the nation's social and economic development.

Last updated: 6 October 2009