Speech to Parliament, delivered on Annette King's behalf by Transport Safety Minister Hon Harry Duynhoven

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I move that the Land Transport Management Amendment Bill be read a third time.

Madam Speaker, this Bill involves major improvements for New Zealand’s land transport planning and funding system.

The Bill addresses the issues raised in a number of reviews into the land transport sector aimed at improving value for money. It also  provides a mechanism for regions to accelerate capital works through a regional fuel tax, if they wish to.

 There will be full hypothecation of fuel excise taxes for land transport purposes.  Those taxes will be ring-fenced exclusively for land transport activities.

For many years, our land transport planning and funding system has been based on an annual cycle.  The National Land Transport Programme will only need to be produced every three years, therefore reducing compliance costs, and increasing certainty.

 The Bill will enable a three-year Government Policy Statement that will provide strategic guidance in the spending of the National Land Transport Fund.

 The New Zealand Transport Agency, replacing the existing Crown entities Land Transport New Zealand and Transit New Zealand, will give effect to the Government Policy Statement when it develops and manages each new three yearly National Land Transport Programme.   Other approved organisations as specified in the Bill will need to incorporate the statement into their decision making.

 As Minister of Transport, I will remain responsible for decisions around the allocation of the fund to NZ Police road safety activities, based on recommendations developed by the New Zealand Transport Agency.

The Bill also provides for monies from the National Land Transport Fund to be used for activities that benefit users of pleasure craft as well as search and rescue generally.  This is in lieu of a refund of the petrol tax paid by recreational boaties.

Under the Bill, regional land transport committees will be replaced by regional transport committees.  These Committees will have enhanced functions, including the preparation of new three yearly regional land transport programmes and also regional fuel tax schemes if they wish to develop them. 

The three yearly regional land transport programmes will feed into a three yearly national land transport programme. 

I am very pleased that this Bill has an express reference to rail and coastal shipping inserted into the purpose section of the Land Transport Management Act.

The Bill ensures that the New Zealand Transport Agency is transparent and accountable given its role as a funder and provider of  some land transport activities.

Finally, the Bill will allow regions to opt for a regional fuel tax to fund priority projects that cannot reasonably be funded from any other source within the timeframe wanted by the region. 

I confidently expect that critical projects, such as the electrification of the Auckland rail network, will be among the first to benefit.

It will be up to each region to decide whether or not to introduce a regional fuel tax of up to ten cents per litre, with a maximum five cents of that amount available for roading projects.

The Bill phases in the amounts of the tax that can be levied in 2009 and 2010, and includes a number of measures to ensure that a robust decision making process will be followed before a regional fuel tax can be introduced.

The measures set out in this Bill will allow New Zealanders to have confidence that our land transport system is being planned and developed in a fully integrated manner for future generations. 

 I am pleased to commend this Bill to the House.