Speech to the Annual Conference of the Motor Trade Association (MTA)

Good morning and thank you for the invitation to speak today.

The Motor Trade Association is a very important stakeholder in the transport sector and it is a privilege to be a part of this event.

Can I acknowledge:

• Your past President, Phil Bothamley
• CEO Stephen Matthews;
• and of course your new President, Rick Murrell; as well as your many members both here and across the country.

I've been asked to cover a range of transport issues today, updating you on some important areas of government work affecting your industry.

RONs

One of the top priorities for the government has been developing better infrastructure for the future.

We see the road network as the core of the transport sector and a top priority.

A lack of investment over the last 20-25 years has created deficits in our infrastructure that are clogging some of our vital economic arteries.

We need to unclog these arteries, and quickly.

We are putting our money where our mouth is and investing $11 billion over the next 10 years.

Last year the government identified seven Roads of National Significance (RoNS) which are top priorities.

These roads are centred around our five largest centres, and are of national strategic importance for the economy. 

All of these roads need work to reduce congestion, improve safety and support economic growth.

Work to ease the bottleneck round Victoria Park here in Auckland is under way, and the Waterview project to complete the Auckland Western Ring Route is out to tender with construction due to start next year.

Other projects in the North Island include the Puhoi to Wellsford upgrade of State Highway 1, the Waikato Expressway, and the Tauranga Eastern Corridor which will be a toll road.

A major focus at present is the corridor from Levin to Wellington Airport, which includes Transmission Gully, providing an alternative route in and out of our capital city. 

As the local MP for Otaki I can tell you this is great news for the region and has been long-awaited.

Further South, stage one of the Christchurch motorway upgrade project is already under construction.

Road Safety

Of course, the quality of our roads has a big impact on safety.

Last year the Transport Minister Steven Joyce spoke to your conference on Safer Journeys, the government's road safety strategy for the next 10 years. 

I'm pleased to report there has been a lot of progress on this.

Already the government has introduced legislation to crack down on drink driving and improve the safety of our younger drivers. These changes include:

• a zero drink drive limit for recidivist drink drivers and drivers under 20
• allowing the introduction of alcohol interlocks for repeat drink drivers
• raising the driving age from 15 to 16
• making the restricted licence test more difficult to encourage 120 hours of supervised driving practice.

Both young drivers and drunk drivers are involved in road crashes far too often, harming others as well as themselves. This is why our changes are focused strongly on this area.

We're also carrying out research to determine the level of harm caused by drivers with blood alcohol concentration levels between 0.05 and 0.08. 

To collect this data, we need to change the law and this is part of the Bill currently being considered by the Transport and Industrial Relations Committee.   

It's important that we have all the data before the government considers what would be seen by some as a far-reaching change to our adult drink drive limits.

Getting a clearer picture on the actual harm caused by drivers between these levels will help build a more enduring consensus on an issue that has been very controversial over many years. 

The government will make a final call on whether or not to lower the adult drink drive limit when the relevant data has been collected, which should take about 2 years.

Cabinet has also agreed to consider changes to our give way rules.

This would put us in step with the rest of the world. More importantly, they would simplify road users' decision making and remove some of the confusion at our intersections.

This proposal will go through the legislative process so that the public can have their say. Before any changes take place there would be public awareness campaigns to ensure drivers understand the new rules.

With this factored in, our planned start date for any changes would be around early 2012.

We're also looking at changes for motorbikes.

We know that, per kilometre driven, motorcyclists are 20 times more at risk of being involved in a fatal or serious injury crash than car drivers. At the same time, the numbers of riders is greatly increasing.

We're looking to make the license test for motorcycles more specific, and replace the current cc restriction for learner and restricted licence holders with a power to weight regime.

Technology changes have meant cc restrictions are less effective and there are a number of powerful high-performance motorbikes available within the current limits.

A change to a power to weight restrictions will also allow novice riders to gain experience on bikes they are likely to continue riding once they have a full licence.

A new licence for mopeds will ensure riders have the handling skills they need to stay safe, and the benefits of refresher training and protective clothing will be promoted.

New Zealand fleet

I know another issue of importance to your organisation is the aging of the New Zealand vehicle fleet.

This issue obviously affects road safety as well, because older vehicles don't have the same level of safety as newer ones.

Improving vehicle safety is one of the goals of Safer Journeys, as part of a system-wide approach.

We'll be considering how we can encourage the uptake of features like Electronic Stability Control and Side Curtain Airbags, and promote safety systems to consumers.

Of course, to tackle the road toll we need everyone to play their part. MTA members have an important role in making sure that vehicles already on the road are in a good standard.

I know this is an issue the MTA takes very seriously and I urge you to continue this focus.

Emissions Rules

Emissions Rules are another important way of making sure that vehicles entering the country are built to a high standard.

The Vehicle Exhaust Emissions Rule 2007 set out standards to be gradually implemented over the coming years.

I know that some argue the requirement for used vehicles to meet the Japan 00/02 standard from January 2009 caused a dip in imports. While that might be true, it's interesting to note that new vehicle imports also dropped by almost exactly the same amount at the same time.

It's clear that other factors, such as the global economic crisis, also had a major impact on import levels.

The next step in the Rule's requirements is for used petrol vehicles from Japan to meet a standard known as Japan 05. This will become the minimum requirement from 1 January 2012. 

I appreciate that many in the industry would like to see a delay to the standard, and last year the government considered just that, looking at the arguments for and against.

However, it is important we retain the current balance of responsibility for harmful emissions between new and used vehicle importers and provide certainty to the industry as a whole.

For this reason, the decision was made to leave the Rule as it was. I would also note that the MTA can play a useful role in helping its members prepare for the introduction of this standard.

We do recognise that the last few years have been a difficult time for the vehicle industry and a decision was made not to progress the development of a Fuel Economy Standard. This would have added costs to motorists and importers, costs that would have outweighed any potential benefits.

Energy Strategy

A move to more environmentally responsible fuels has already started to happen. Biodiesel is a good example.

It was great to see Gull launching its new Gull Diesel Max five percent blend in three service stations a few months ago, and higher blend levels are available through various local initiatives such as the Queenstown Lakes Biodiesel Consortium.

Electric vehicles have a role to play too, and are now exempted from road user charges.

We are also supporting the use of biodiesel through the government's Biodiesel Grants Scheme

The government's Energy Strategy and its Energy Efficiency and Conservation Strategy are important pieces of work.

In July this year drafts of these strategies were released for public consultation. Almost 400 unique submissions have now been received and analysed for a report back to the Minister.

The Energy Strategy sets a target to save 55 petajoules of all sources of energy by 2015. Of this 29 petajoules would be allocated to transport - an ambitious but achievable goal.

To put this into context, the annual petrol consumption in NZ amounts approximately 100 petajoules.

If these targets are adopted we will need to keep up the work on improving the efficiency of the transport sector.

Work is already happening through the Safe and Fuel Efficient Driving Programme, which teaches truck and bus drivers a range of maintenance and driving techniques to improve their fuel efficiency.

We have fuel economy labelling so that consumers can make informed choices about the vehicles they buy.

I understand the MTA has provided its views on these strategies, and I thank you for that. These are important issues for the transport sector and the country as a whole. As with road safety, this is not a job for the government alone and industry will need to do its part.

CoF B review

One final issue I know the MTA has an interest in is the Certificate of Fitness B inspections for heavy vehicles.

As you probably know, a review is underway, with Transport Engineering Research New Zealand recently reporting its findings.

These findings have been provided to the MTA for comment and I know you'll be very keen to hear what is planned.

However, with the NZTA now considering these recommendations it's too early for me to comment on what the outcome of this will be.

I am confident though, that whatever decision is made will be one that gives careful thought to efficiency, safety and value for money for the sector.

In addition, scoping work on a potential Warrant of Fitness review has begun. This review could consider possible reductions in compliance costs.

I understand officials have already sought your views on aspects of this, and I expect there will be further discussion as this work progresses.

Conclusion

I hope I've given you a good overview of what are some very important and meaty transport issues the government is working on.

Improving our roading infrastructure, tackling the road toll, more efficient fuels and reducing red tape and unnecessary costs are all big priorities.

On all of these topics we have appreciated the input of the MTA.

We may not agree 100% of every issue, but your organisation provides a strong, thoughtful and constructive approach.

Thank you again for inviting me today and enjoy the rest of your conference.