Speech to IPENZ Transportation conference

Today I'd like to tell you about the government's priorities for transport and give you an update of some of the major projects we're working on - which many of you might be involved in.

But first of all, I want to explain why transport is such a big priority for this government, and how it fits in with our vision.

Nearly 18 months ago we were elected with a pretty solid mandate.

We've started work on some major goals - growing the economy, creating new jobs and improving public services.

A big focus of last year was getting through the recession in as good a shape as possible. This year the Prime Minister has made it clear his number one priority is to get the economy growing again.

A better economy means more jobs, higher pay and more exciting opportunities. It means more money to pay for social services like health and education, and it makes New Zealand a more attractive place for young people to stay and build a life in.

We know that quality transport infrastructure can give us greater productivity and faster economic growth. 

For an exporting nation like New Zealand, how we move people and goods to markets is crucial. We rely on roads, rail, sea and air travel to make a living in the world.

To be a competitive economy we have to make our transport network as safe and efficient as possible.

However, in recent years a serious infrastructure deficit has arisen in this country.  We need to turn that around.  This isn't optional - it's vital.

Roads

I want to tell you about our priorities for roading first, because it remains the core of the transport network. 84 percent of journeys to work in urban areas are by car, truck or motorbike and 70 percent of freight tonne-kilometres are carried by road.

Last year we amended the Government Policy Statement on Land Transport Funding - otherwise known as the GPS. This is the primary document for influencing transport funding. We revised it to reflect the outcomes the government wants to achieve for every dollar invested in the transport sector.

The major change we made was to make economic growth and productivity the primary objective for investment, and to better reflect the transport options realistically available to New Zealanders

This is why investment in State highways has been lifted to 35 percent of the total National Land Transport Fund.

Over the next 10 years, just under $11 billion in total will be invested.

This will be critical to kick-starting our economy in the short term, and boosting productivity in the longer term.

Roads of National Significance

This rethink around investment has also led to the development of the Roads of National Significance (RoNS).

These projects are a broad statement of where the government believes national road funding priorities lie.  The roads are centred on New Zealand's five largest population centres that have large traffic volumes, and are of national strategic importance for the economy. 

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

The NZ Transport Agency will be making major progress on these roads over the next 10 years.

Brief update on each RoNS project

The first Road of National Significance project to begin was SH1 Victoria Park in Auckland, which began last year, one year ahead of schedule.  

This is the final part of improvements to Auckland's central motorway junction. It includes a 440 metre tunnel beneath Victoria Park to carry three lanes of northbound traffic, allowing the existing viaduct to provide four dedicated southbound lanes.

The Waterview section of Auckland's Western Ring Route will complete a 48 kilometre motorway linking Manukau, Auckland, Waitakere and the North Shore while providing an alternative route through the region bypassing the central city.

The NZTA will be progressing the Waterview Connection under the new national consenting process. This will streamline the decision making process to ensure community involvement in the project, while keeping the completion date of 2015 or 2016.

The $1.4 billion upgrade of State Highway One from Pūhoi to Wellsford will bring significant benefits to the Northland and Rodney districts, as well as to Auckland by reducing congestion, improving safety and supporting economic growth.

Over the next couple of years the focus of this project will be detailed investigation and design work to determine route options and obtain consents. This will include consultation on possible routes.

The SH2 Tauranga Eastern Link is the largest roading project ever planned in the Bay of Plenty. It is part of a wider project to serve increased traffic numbers in the region as well as supporting future population growth.

The project is currently being tendered and awarding of the contract is likely to be in the middle of this year. The project is also being examined as a potential toll road.

Work on the Waikato Expressway is continuing, with the announcement this month of the awarding of the contract to design and construct the $168.7 million Te Rapa section of the expressway.

The expressway is made up of 10 sub-projects which when complete will deliver 96 kilometres of new or improved State highway in a divided four-lane expressway.

This latest announcement means three sections of the expressway will be underway by 2011, while two projects have already been finished.

When complete the expressway will deliver improved regional and national links, improved travel times, less congestion and a safer road environment.

As the local MP for Otaki I have a major interest in the SH1 Wellington Northern Corridor which extends from Levin to Wellington airport.

My electorate covers the Kapiti Coast and Horowhenua, and I can tell you transport is the number one local issue.

After a lot of local discussion and debate, NZTA unveiled their choice of route for SH1 just before Christmas. It was a tough time for many in the community, but it's great to finally have certainty and progress.

The other big news in that project was Transmission Gully. This is a big issue for people in my part of the world, and as local MP I've campaigned long and hard for this route to be built.

I think it's essential we have an alternative route in and out of our capital city. In a city like Wellington that is so vulnerable to a big quake, you've got to have route security.

This will also be a vital route in moving people and freight.

There has been decades of talk over this issue, but I'm proud to be part of a Government which is finally doing it.

Finally, the Christchurch Motorway Projects is made up of improvements to the southern, northern and western road corridors. This will mean better access around and to Christchurch, and better connections to the airport and the Port of Lyttleton.

Rail projects

We also have some big rail projects in the pipeline.

In Wellington the first of the new ‘Matangi' trains is due to arrive in August, and passengers can expect to be on board before Christmas.

The government has covered 90% of this cost, with local ratepayers picking up the rest. There has also been much-needed investment in upgrading the tracks.

In November last year Cabinet committed $500 million towards electric trains for Auckland's rail network. The new trains will be delivered in 2013 and will start running soon after.

This builds on earlier commitments, making a total investment in Auckland metro rail to $1.6 billion.

Once complete this will provide a step change in Auckland's public transport system, enabling the rail network to deliver a more robust, faster service carrying double the number of passengers currently travelling by train.

Looking further forward, the population of the Auckland region is expected to continue growing rapidly. The population is expected to hit two million by 2040.

This means we need an effective land transport system with both roads and good public transport.

National Infrastructure Plan

You may have heard about the National Infrastructure Plan, released a few weeks ago.

It shows the government is spending about $7 billion a year on infrastructure and holds about $110 billion in physical assets. It shows the large scale of the government's infrastructure programme and highlights some future issues that may require action.

The plan has a 20-year horizon and is part of a range of work aimed at improving the government's planning, decision-making and management of infrastructure in order to maximise the economic benefits.

It also identifies some future gaps and issues that might require action, including a third Auckland Harbour crossing, a more sophisticated form of transport pricing and more investment in the commercially viable parts of the rail network.

Clearly we are at an important point in New Zealand's infrastructure. Decisions made by government and sector leaders like yourselves will have far ranging implications.

Getting enough engineers

One of the biggest challenges facing infrastructure in this country is a problem that IPENZ is well aware of: a shortage of engineers.

Demand for engineers has continued to grow even through the recession, and it's clear from the major projects I've described that this demand will increase in the future.

I know that many employers struggle to find enough suitably qualified staff here, and have to recruit overseas.

Compared to other countries, New Zealand has a low number of graduates in engineering. This has been a problem for many years.

I want to congratulate IPENZ for the work they are doing on tackling this issue. The Futureintech project is run by IPENZ and funded by the government, with the aim of promoting careers in science, technology and engineering to school students.

It does this in a hands-on way by getting young engineers into schools to work with students on practical projects.

It's a good example of the engineering community showing proactive leadership, with the support of the government.

Road Safety

Finally, I want to outline our vision on road safety.

I'm sure you'll be aware of Safer Journeys, released two weeks ago, which is the government's 10 year plan for road safety.

While we have made improvements in the past and our road toll has dropped significantly in the last thirty years, this progress has stalled in recent years. Last year 385 New Zealanders died on our roads. 

The strategy outlines some of the major road safety issues we face and presents a range of actions to tackle them.

The priority areas are:

• Young drivers - because so far this year 35% of people killed on our roads have been under 25.
• Alcohol and drug impaired drivers - because almost a third of deaths on our roads involve drivers with alcohol and / or drugs in their system.
• Motorcycling - because we know that risk of a motorcyclist being killed or seriously injured in a crash is about 18 times higher than for a car driver.
• Roads and roadsides - because we know that one of the best ways to make our roads safer is to ensure they are engineered to the highest standards and because 21% of fatal crashes happen at intersections.
• Safer speeds - because in 2008, 127 people died and 569 were seriously injured in crashes where speed was a factor. 

These areas were chosen as priorities because they are problem areas where real gains can be made.

This month Transport Minister Steven Joyce will be taking a package of actions to Cabinet on young drivers and, next month, the Cabinet will discuss issues around alcohol.

The package on young drivers includes:

• raising the driving age to 16
• tightening up the restricted licence test
• improving the road safety education available to young people and increasing access to it
• a zero blood alcohol for drivers under 20
• investigating vehicle power restrictions for young drivers.

This will be followed by another package focussed on alcohol, with the options including:

• compulsory alcohol interlocks and a zero drink drive limit for recidivist drink drivers
• reviewing traffic offences
• penalties for repeat offenders and drink driving causing death and serious injury.

It will also look at lowering the alcohol limit for driving. The options include either lowering the legal blood alcohol concentration from 0.08 to 0.05, or conducting New Zealand specific research on the level of risk posed by drivers with a BAC between 0.05 and 0.08.

Other options for Cabinet include changing our give way rules for turning traffic, and improving the safety of motorbikes by improving training licensing, and restricting the types of bikes that learners can use.

Even before this package, the government has passed new laws on drugged driving and driving with a cellphone. 

As you can tell by now, transport is a hugely important and busy area for the Government. We have a very good Minister in Steven Joyce who is full of ideas and energy.  

We always welcome the input of experts like yourselves. Thank you for listening to me, and I'd welcome any questions or comments you have.