18 225 Title: Section: Prepared by: Council Submission on Draft Government Policy Statement Land Transport 2018 Strategic Planning Yvette Kinsella (Strategic Planning Manager) Meeting Date: 3 May 2018 Legal Financial Significance = low Report to ASSETS & INFRASTRUCTURE Committee for decision SUMMARY The purpose of this report is to seek Committee approval of a Council submission on the Ministry of Transport s draft Government Policy Statement on Land Transport 2018 (the GPS). The submission period on the GPS closed 5pm, 2 May 2018 (the day before the scheduled meeting). In lieu of a formally-endorsed Council submission, staff forwarded a draft submission to the Ministry of Transport (the Ministry). We are now seeking Committee discussion and approval of the submission so we can confirm content with the Ministry as soon as possible. The purpose of the GPS is to help guide investment in transport including national priorities for investment and how funding will be allocated across different land transport activities. The key changes in the GPS are: a refocus of strategic priorities towards safety and access new focus areas around mode neutrality, integrated land use and transport planning changes to parcels of funding including an increase in regional funding. The strategic direction in the GPS is aiming to increase investment in safety, public transport, walking and cycling and regional. It aims to shift investment away from state highway. The key points noted in the draft Council submission are: economic development remains a key priority in the GPS ensure the greatest purse is available for regional bring forward funding increases for regional to enable momentum on key existing projects such as Tairāwhiti Navigations increase government funding support to regions, reducing local funding contributions ensure economic development, resilience and alternative transport modes continue to be important alongside safety recognise the challenges for less-resourced councils to reformulate their RLTPs to meet the new GPS by 30 June 2018 support the inclusion of resilience and climate change in the GPS support increased funding for safe walking and cycling networks. Page 1 of 7
The decisions or matters in this report are considered to be of low significance in accordance with the Council s Significance and Engagement Policy. RECOMMENDATIONS That the Assets & Infrastructure Committee: 1. Notes the contents of this report - and in particular: a) The Gisborne District Council submission on the draft Government Policy Statement on Land Transport 2018 (tabled as a Late Item). 2. Retrospectively approves the content of the Council submission. Authorised by: Keita Kohere Director Transformation & Relationships David Wilson Director Lifelines Keywords: transport, land transport, roads, roading, funding, strategic transport, government policy statement on land transport, GPS Land Transport, ministry of transport, submission Page 2 of 7
BACKGROUND 1. The purpose of the Government Policy Statement on Land Transport (the GPS) is to help guide investment in transport. The GPS guides the investment in land transport of the NZ Transport Agency and councils by: clarifying what the government wants the land transport system to achieve identifying how much revenue will be raised by central government to fund land transport signalling how the government wants funding to be allocated across different types of land transport activities. KEY GPS CONTENT Strategic direction 2. The GPS signals a change in approach to land transport. 3. The new approach involves new strategic priorities. The primary strategic priorities are safety and access. Secondary priorities are the environment and value for money. Page 3 of 7
4. The GPS also includes three themes that further describe what effective delivery of land transport outcomes looks like: a mode-neutral approach to transport planning and investment decisions (considering all transport modes and basing decisions on the merits of each mode to deliver positive social, economic and environmental outcomes) incorporating technology and innovation into the design and delivery of land transport investment integrating land use and transport planning (enabling transport to support developments in housing, industry, health and education). Changes to activity classes 5. The GPS includes an activity class framework that signals key areas and quantums for investment. 6. The table below shows the changes in the activity classes. 7. In summary the decrease in the state highway class rebalances investment across the transport portfolio to advance the government s new transport priorities under the GPS. There is a stronger focus on creating liveable cities by an increased focus on public transport (including rail) and walking and cycling. Activity class Public transport Rapid Transit Walk and cycle Percentage change over three years 46% increase New activity class 248% increase Comment This will support an expansion in public transport networks. This will support an increase in operating subsidies for public transport and some public transport capital. New activity class allowing $4 billion over 10 years to establish rapid transit investment with an initial focus on Auckland. Note: While funding ranges show a decrease in rapid transit investment, in later years the intention is to continue with more investment. To support an expansion in walking and cycling infrastructure. Local road 42% increase To support local road and upgrades. Regional State highway Road policing Road safety and demand management 96% increase 11% decrease 14% increase 81% increase To support investment in regional projects that improve safety, resilience and access for people and goods. How the NLTF interacts with the Provincial Growth Fund will be a key determinant of the activity class funding expenditure levels. This decrease rebalances investment across the transport portfolio. The proposed activity class level will allow for currently committed projects to be completed and will enable the delivery of more safety. To enable the NZ Police to maintain an effective road policing service. To continue road safety promotion, alcohol interlocks, and to include demand management measures that promote public transport and walking and cycling. Page 4 of 7
Activity class State highway maintenance Local road maintenance Investment management Transitional rail Percentage change over three years 18% increase 22% increase 31% increase New activity class Comment This activity class was capped over the last GPS period. It is now proposed to allow for an increase in the level of renewals of state highway pavement surfaces given additional heavy vehicle traffic and severe weather. This activity class was capped over the last GPS period. It is proposed to allow an increase to cover the increased maintenance cost of additional heavy traffic and severe weather. However, it is also proposed to allow footpath maintenance to be funded from the NLTF. This is a scope change that reflects the Government s desire to support the use of active modes. This increase will support additional transport planning of NZ Transport Agency and local government given the changes to transport priorities. New activity class this activity class will support rail priority transport options for users and benefit congestion in our urban centres until a wider review of rail funding is concluded. KEY CONTENT OF DRAFT SUBMISSION 8. The key points that staff have raised in the draft submission are to: continue to ensure that economic development remains a key priority in the GPS to support the actions identified in the Tairawhiti Economic Action Plan ensure the greatest purse is available for regional by raising the minimum funding allocation threshold to guarantee the majority of the purse is allocated to regional and not redirected to other areas at NZTA discretion bring forward funding increases for regional to the current financial year to enable momentum on existing projects such as those that support Tairawhiti Navigations and other economic development projects continue with previous plans to increase government funding support to regions to reduce the local funding contribution to make work on local roads more affordable for local councils ensure that safety is not the sole driver of transport investment and that economic development, resilience and alternative transport modes continue to be important recognise that less well-resourced councils may not be in a position to reformulate their RLTPs to meet the new GPS by 30 June 2018. This poses a risk to government achieving the objectives in the GPS support the inclusion of resilience and climate change in the GPS to ensure that emergency works are adequately provided for support increased funding for safe walking and cycling networks. NEXT STEPS 9. To help councils prepare final Regional Land Transport Programmes (RLTPs), the NZ Transport Agency will provide local government with a redrafted Investment Assessment Framework that reflects the GPS. Page 5 of 7
10. The Investment Assessment Framework is used to prioritise projects and programmes for inclusion in the National Land Transport Programme (NLTP). It helps councils to present their RLTPs so they are ready to attract funding. 11. The NZ Transport Agency s regional team will work closely with Council to understand how the changes will affect our community and explore the opportunities the draft GPS presents to bring forward other programmes of work for funding, particularly public transport, and cycling and walking. 12. Councils are due to submit their RLTPs to the NZ Transport Agency by 30 June 2018, to be considered for inclusion in the NLTP. A programme or project has to be included in an RLTP to be eligible for inclusion in the NLTP and to be eligible for funding from the NLTF. ASSESSMENT OF SIGNIFICANCE Criteria This Report The Process Overall The effects on all or a large part of the Gisborne district Low High The effects on individuals or specific communities Low Medium The level or history of public interest in the matter or issue High High Inconsistency with Council s current strategy and policy Low Medium Impacts on Council s delivery of its Financial Strategy and Long Term Plan. Low High Consideration of consistency with and impact on the Regional Land Transport Plan and its implementation Low High 13. The decisions or matters in this report are considered to be of low significance in accordance with Council s Significance and Engagement Policy. The decision is around seeking to influence the government s policy direction on land transport. 14. Ultimately the GPS will have a significant impact, through the decisions of the NZ Transport Agency, on Council s investment in land transport and rates. These matters will be addressed through the 2018 Regional Land Transport Plan and the 2018-28 Long Term Plan. COMMUNITY ENGAGEMENT 15. Council is the party being engaged in this instance. No wider community engagement from Council is required. The GPS is open to submissions from the general public and stakeholders. FINANCIAL CONSIDERATIONS 16. The GPS has a significant impact on the allocation of funding for land transport. It is the key government document that specifies the quantum of funding available and the allocation of funding between different land transport activities. 17. Council staff will need to work closely with the NZ Transport Agency staff to ensure the final draft RLTP is aligned with the GPS and the revised Investment Assessment Framework that NZ Transport Agency is developing. Page 6 of 7
POLICY AND PLANNING IMPLICATIONS 18. Council has aligned its draft Regional Land Transport Plan and Regional Public Transport Plan with the GPS 2015. However there is also already some alignment with safety and access priorities in the GPS. 19. Council will need to work with NZ Transport Agency staff to update its RLTP to be more consistent with the GPS strategic direction, in particular to explore the new opportunities that have emerged through the GPS. This will ensure Council is able to attract the required funding through the NLTF, which will be finalised in September 2018. NEXT STEPS Date Action/Milestone Comments 2 May Staff submit draft Council submission to Ministry Submissions close 2 May 3 May Committee considers and amends draft submission 4 May Staff amend and forward final submission to Ministry Ministry will accept until 4 May 31 May Report to RTC on RLTP and RPTP alignment with GPS APPENDICES Appendix 1: Draft Government Policy Statement on Land Transport 2018 Appendix 2: Draft Council submission on the draft Government Policy Statement on Land Transport 2018 Page 7 of 7