Part 5 of the Land Transport Management Act (LTMA) sets out the regulatory framework for how public transport services are organised and delivered in New Zealand.
Land Transport Management Act 2003, part 5(external link)
This section provides an overview of key aspects of the regulatory framework relevant to both privately and publicly provided public transport services.
Under the LTMA s5(external link) a public transport service is defined as a service for the carriage of passengers for hire or reward by means of:
Public transport is organised around three statutory service types (outlined below). The service types are relevant to all modes of public transport.
Integral services are identified by public transport authorities as being integral to the functioning of a regional public transport network. Integral services are regulated under the LTMA and can only be delivered by or under contract to a public transport authority, unless exempt.
Exempt services are an important part of a public transport system but are generally “exempt” from regulation under Part 5 of the LTMA that otherwise applies to integral services.
Exempt services meet the definition of a public transport service, operate without a subsidy, and are not provided by or under contract to a public transport authority. Exempt services are usually provided by private for-profit entities such as ferry, bus and taxi companies, ride sharing services or not-for-profit community transport entities.
There are two types of exempt services, those that must be registered with the relevant public transport authority to operate and those that are not required to be registered (LTMA s130(external link)).
Excluded services those that are excluded from the regulatory framework set out in part 5 of the LTMA. Examples include services contracted or funded by the Ministry of Education and services that are not available to the public generally and operated for private hire or tourism purposes.
All persons exercising powers or performing functions under Part 5 of the LTMA must be guided by each of the following principles to the extent relevant to the power or function (LTMA s115(external link)):
Many organisations have statutory roles and functions relevant to organising and delivering public transport in New Zealand. Key roles and functions are outlined below.
Roles and functions overview [PDF, 66 KB]
Regional councils, unitary authorities and Auckland Transport (or any territorial authority to which the regional council has transferred relevant function and powers) are collectively referred to as public transport authorities.
Public transport authorities are responsible for statutory functions key to the organisation and delivery of public transport services in New Zealand, including:
All public transport services in New Zealand must be delivered by, or be under contract to a public transport authority, unless exempt or excluded.
Under the LTMA s95(external link), NZTA has statutory functions to:
To support its statutory functions, NZTA has statutory powers and responsibilities such as:
Public transport operators are entities that operate integral public transport services under contract with a public transport authority, or exempt, or excluded public transport services.
Under the LTMA, a public transport authority must develop and adopt a regional public transport plan if it intends to provide public transport services or provide subsidy or financial assistance (LTMA s119(external link)).
The regional public transport plan serves as a statement of services integral to the public transport network, the policies and procedures that govern those services, and the information and infrastructure that support them.
The development process is a means for public transport authorities, local authorities, and operators to work together to develop public transport services and infrastructure.
Plans must be subject to public consultation prior to adoption. This enables engagement with the public on the design and operation of public transport networks.
Before adopting a regional public transport plan, a public transport authority must be satisfied that the plan has been developed in accordance with any relevant guidelines issued by NZTA (LTMA s124(external link)).
Development guidelines for regional public transport plans
New Zealand has 14 public transport authorities, each with their own regional public transport plan:
For a person or entity to operate certain exempt services, it must be registered with the relevant public transport authority (LTMA s130(external link) and s146(external link)) so that public transport networks can be planned and delivered in an integrated manner.
Each public transport authority must publish and maintain an exempt services register (LTMA s131(external link)). The LTMA sets out requirements for the registration, variation (LTMA s136(external link)) and withdrawal of exempt services (LTMA s139(external link)).
A public transport authority may refuse to register a service (LTMA s134(external link)) or deregister an existing exempt service under certain circumstances (LTMA s137(external link) and s138(external link)). Decisions can be appealed to a court of law under certain circumstances (LTMA s141(external link)). The status of an exempt service could also be changed by an order in council (LTMA s150(external link)).
Under Part 5 of the LTMA, subsidy means any funding from the National Land Transport Fund or local authority (LTMA s5(external link)). Local authorities include regional councils, city councils and district councils.
Under the LTMA, NZTA and local authorities can only subside integral services identified in a regional public transport plan. This enables public transport authorities to plan and deliver public transport networks in an integrated manner.
Exempt services operate without subsidy. For an exempt service to receive subsidy from a local authority or from the national land transport fund it would need to be reclassified as an integral service and regulated accordingly.
Integral services must be delivered by or under contact to a public transport authority (unless exempt) irrespective of whether the service requires subsidy to operate (LTMA s116A(external link)).
However, if subsidy is required it must only be provided to a public transport service that is identified in a regional public transport plan as integral and operated in a unit (LTMA s116B(external link)).
The LTMA does not limit the Crown or any other entity from subsidising any type of public transport service. Such a service may still need to be registered with the relevant public transport authority to operate.
The LTMA makes a distinction between subsidy and financial assistance. While local authorities and NZTA cannot subsidise exempt services, financial assistance can be provided in certain circumstances as follows:
Where a public transport authority intends to provide financial assistance, it must be first identified in a regional public transport plan (s120 (1)(a)(vii))(external link) and there must be an agreement between the public transport authority and exempt service provider.
We are currently developing further policy and guidance related to the regulation of public transport including:
This section of the website will be updated once this policy and guidance is available.
