Moving Forward - Land Transport Changes 7/11

Mark Gosche Transport

The Existing Funding System - Fact Sheet Three

Government expenditure on state highways, local roads,
traffic enforcement, alternatives to roads, road safety, passenger transport,
walking and cycling is funded from the National Roads Fund (NRF), a dedicated
part of the Crown Account.

The NRF currently provides some $1.3 billion (including GST) of government
land transport funding. Transfund New Zealand is responsible for making funding
allocations to land transport and Transit New Zealand is responsible for
submitting proposed projects for Transfund's consideration. The boards of both
agencies are statutorily independent from the Minister. The government can only
issue general policy directions to these agencies. As a result of the proposed
changes, the Minister will be able to give Transfund more guidance on the
government's general priorities but will still not have the power to make
decisions on individual projects. The NRF will be renamed the National Land
Transport Fund (NLTF) to reflect the shift in focus to a more balanced mix of
land transport options.

A chart showing 2001-02 Land Transport Funding Estimates follows.

2001-02 Land Transport Funding - before the changes (including G.S.T.)