Draft Government Policy Statement on land transport (GPS) 2024
Release of draft for consultation – August 2023
Frequently Asked Questions
About the GPS
What is the GPS?
The GPS is the Government Policy Statement on land transport. It outlines what the Government
wants to achieve in land transport, and how it expects to see funding allocated between types ofactivities (for example, roading, public transport and road safety) across the land transport system.
Each GPS sets out the priorities for a 10-year period and is updated every three years.

What is in the GPS?
The GPS guides Waka Kotahi and local authorities on land transport investment.
The GPS describes:
 the results the Government wishes to achieve from its investment in land transport throughthe National Land Transport Fund (NLTF) over the next ten years how much funding will be provided to the NLTF for Waka Kotahi to allocate to transport
investments
 how the NLTF funding will be raised
how the government wants NLTF funding to be allocated across areas of investment known
as activity classes (for example, safety, state highway improvements, walking and cycling
improvements).

Where does the money outlined in the GPS come from?
The GPS provides guidance to Waka Kotahi on how the NLTF should be spent. The NLTF is largely
made up of revenue from fuel excise duty and road user charges.
Smaller amounts of NLTF revenue come from motor vehicle registration and licensing fees, the saleof surplus land and property, road tolls and freight rail track user charges.
The draft GPS 2024 is proposing that additional Crown funding and financing will be injected into
the NLTF over 2024/25 – 2026/27.
The NLTF funds transport projects, often with the support of co-investment from local government
for projects that benefit their communities.

How does the GPS inform which projects get funding?
The GPS sets the strategic direction and the funding envelope and provides guidance on how toinvest the NLTF. Waka Kotahi has responsibility for which projects or investments can get fundedthrough the development of the National Land Transport Programme (NLTP), which gives effect tothe GPS.
To be considered for funding from the NLTF, an activity or transport project needs to be referenced
in a Regional Land Transport Plan (RLTP). RLTPs are developed by local authorities and identify
investment priorities at a regional level and must be consistent with the GPS.

Why do we need the GPS?
Transport investments have long lead times, high costs and leave long legacies. Transport planningand investment need to be guided by a long-term strategic approach, with a clear understanding ofwhat outcomes the Government is seeking to achieve. The GPS influences decisions on how
money will be invested and guides local government and Waka Kotahi on the type of activities thatshould be considered for inclusion in RLTPs and the NLTP.

GPS 2024
When will GPS 2024 take effect?
GPS 2024 will take effect from 1 July 2024, and replaces GPS 2021.

What are the strategic priorities in the draft GPS 2024?
The results the Government wishes to achieve from NLTF investment are expressed via a set ofstrategic priorities and a strategic investment programme. The strategic priorities for the draft GPS2024 are:
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maintaining and operating the systemincreasing resilience
reducing emissions
safetysustainable urban and regional development.
an integrated freight system.

What is the strategic Investment Programme and what projects are included in it?
The draft GPS 2024 signals a Strategic Investment Programme containing several projects that theGovernment considers will help advance the strategic priorities in the draft GPS 2024. These are:
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Warkworth to Whangārei – State Highway 1, including:o Te Hana to Brynderwyns
o Warkworth to Wellsfordo Whangarei to Brynderwyns
Auckland Northwest Rapid Transit
Auckland rail third and fourth rail mains
Avondale to Onehunga rail link
Level crossing removal programmeGolden triangle electrification
Cambridge to Piarere – State Highway 1
Tauranga to Tauriko – State Highway 29
Wellington CBD to Airport – State Highway 1 – Second Mt. Victoria Tunnel and Upgrades toBasin Reserve/Arras Tunnel
Wellington CBD to Island Bay – Mass Rapid Transit
Napier to Hastings – State Highway 2
Nelson (Rocks Road) shared path – State Highway 6
Nelson – Hope Bypass – State Highway 6
Christchurch Northern Link – State Highway 1

Ashburton Bridge – State Highway 1

For non-rail projects, decision rights for funding from the NLTF rest solely with Waka Kotahi. Theauthority to approve a Rail Network Investment Programme (RNIP) and NLTF funding for an RNIP
sits with the Minister of Transport.
By highlighting these projects, the Government expects that their strategic importance will be given
particular consideration during NLTP development, given their alignment and potential impact on
the wider government priorities outlined in the GPS.

What has changed since GPS 2021?
The draft GPS 2024 builds on the strategic priorities of GPS 2021, including supporting improved
transport choice, improving safety, improving freight connections and reducing the impact of travelon our environment. It proposes a strengthened focus on resilience, recognising recent flood andweather-related recovery efforts.
The draft GPS 2024 includes a new strategic priority for maintaining and operating the system. This
reflects the need to manage our current roading network and operate existing public transport
services. There is also a new sustainable urban and regional development priority, whichemphasises the need for our cities and towns, large and small, to have transport networks that arefit for the future, and that promote integrated land-use and transport planning.

Will local government and Waka Kotahi have time to incorporate the GPS into theirplans?
The Government is releasing the draft GPS 2024 now to provide Waka Kotahi, local government
and the sector with an indication on what activities to include in their transport planning and funding
strategies.
The final GPS is required to be released by July 2024, and the current consultation process willallow us to meet that timeframe.

Funding
How much funding is forecast under the draft GPS 2024?
The draft GPS 2024 signals the Government’s transport priorities and guides investment in landtransport of $60 billion over a 10-year period. This is made up of $6 billion from the NLTF perannum, and is supported by $1.5 billion from local government, each year. In addition to this theGovernment has committed a further $10 billion Crown funding over the next decade.

What changes to NLTF revenue are being proposed through the draft GPS 2024?
The Government recognises the significant cost pressures that the NLTF is facing and proposes toincrease revenue by $5.3 billion from $15.5 billion in 2021/22-2023/24 to $20.8 billion in 2024/252026/27, an increase of 34 percent.
To increase revenue in by $5.3 billion, we require a funding package of $7.7 billion. This is because
revenue over 2021/22-2023/24 was propped up by a $2 billion Crown loan.
The proposed $7.7 billion funding package is made up of: Semi-regular increases in fuel taxes for three years ($1.4 billion), consistent with historic

norms prior to 2020
Crown funding and financing ($6.3 billion) to limit cost pressures on household and businessbudgets

The $6.3 billion of Crown funding and financing includes a contribution of $500 million of the Climate
Emergency Recovery Fund, transferring the traffic infringement fee revenue to the NLTF, $2.4
billion of direct Crown funding and a $3.1 billion Crown loan.

Why are you proposing to raise fuel taxes?
Given the real cost pressures facing households and businesses, the Government is proposing a 2cent increase in petrol taxes and equivalent increase in road user charges on July 2024 and again
in January 2025. This will be followed by 4 cent increases on July 2025 and again in July 2026. To
keep the increases as small and gradual as possible, we are also proposing to top up the NLTF withother Crown funding over the next three years.
Contributions to the NLTF through Fuel Excise Duty and Road User Charges do not automaticallyincrease to keep up with cost pressures. This means as costs increase or emergency events occur,
we have to either find ways to do more with less or increase Fuel Excise Duty and Road UserCharges.
A 2 cent increase would add 44 cents a week to the average motorist’s spend, increasing to $2.64
per week at 12 cents by July 2026. These increases would generate around $1.4 billion in revenueover three years, dedicated to improving our transport network.

How will the draft GPS 2024 ensure value for money?
The draft GPS 2024 outlines how value for money should be considered, looking beyond thetraditional economic value to the standards, practices, capabilities and strategic alignment ofinvestment. A performance framework will be established to support monitoring of value for money.

What are you doing to ensure there is enough revenue in the land transport system?
The land transport funding system is facing significant pressure due to rising demands and costs.
This includes historic deferral of maintenance, increasing severity and frequency of extreme
weather events, workforce pressures, and a period of heightened inflation.
The Government has provided additional funding to meet these pressures in the short term. Longerterm, a project is already underway to look at the future of revenue in the transport system, and it isconsidering how to make the system more sustainable in the context of climate change andincreasing cost pressures.

Draft GPS 2024 – Details
Are there any new activity classes in the draft GPS 2024?
The draft GPS 2024 proposes a new activity class for inter-regional public transport, which will playa crucial role in achieving the government’s emissions reduction targets. This activity class provides
for investment in existing and new inter-regional services, encouraging regional councils and unitary
authorities to work together to expand and improve the inter-regional public transport serviceofferings.
The Safety Activity Class proposed in the draft GPS 2024 represents an update to the Road to Zero
Activity Class introduced through GPS 2021. Investment through the Safety Activity Class will betargeted towards interventions that support reductions in deaths and serious injuries, including inRoad Policing, Automated Enforcement, and Road Safety Promotion.
Safety infrastructure and speed management will now be funded from the State Highway
Improvements and Local Roads Improvements Activity Classes. This will better integrate the wider
network and deliver a wider range of outcomes. In addition, many safety investments occur as partof investments in other activity classes. For example, intersection improvements, wider roadshoulders, rumble strips, and improved skid resistance.

How does the Emissions Reduction Plan impact the GPS?
Reducing transport emissions is critical for reaching New Zealand’s net zero emissions target by2050. In 2019, transport was responsible for 39 percent of carbon emissions and 17 percent of New
Zealand’s total gross emissions, with most of these emissions coming from light vehicles (eg, cars)
with internal combustion engines.
Under the Emissions Reduction Plan (ERP), we need to reduce transport emissions by 41 percent(from 2019 levels) by 2035 and reach net zero emissions by 2050.
Reducing emissions is a strategic priority of the draft GPS 2024. The draft GPS 2024 outlines theMinister’s expectations for Waka Kotahi to manage the risk that NLTF investment conflicts withemissions reductions objectives.

Why is rail/coastal shipping being funded by road users?
Investment from the NLTF will help make rail and coastal shipping a more competitive way ofcarrying freight. This should help reduce the number of trucks on the roads. Road users will also
benefit from reduced emissions, more resilient freight options, safer roads with fewer trucks and lessdamage to roads.
Track user charges from rail operators also contribute to the NLTF.

How will the draft GPS 2024 support the efficient movement of freight?
The draft GPS 2024 has been developed alongside the draft Freight and Supply Chain Strategy and
the New Zealand Rail Plan. In addition, the ERP has a number of actions relating to decarbonising
the freight sector including providing funding to support the freight sector to purchase zero- and lowemissions trucks.
The Low Emissions Transport Fund has already begun co-funding a range of initiatives toaccelerate transport decarbonisation. So far, funding has been provided for battery-swap electrictruck technology for milk tankers and concrete mixers.
Maritime transport will play an important role for our economy to increase the resilience of oursupply chains and to achieve our goal of reducing emissions from freight transport.

Feedback and next steps
What are the next steps and when will the final GPS 2024 be available?
We’re releasing the draft GPS 2024 as a signal to the sector and to help with their strategicplanning. We expect to release the final following the election.
How do I provide feedback?

Public consultation on the draft GPS 2024 is now open, please visit The Ministry of Transport
website to provide your feedback via our questionnaire.
Feedback on the draft GPS 2024 closes at 5pm on 15 September 2023.
If you have any questions contact us on GPS@transport.govt.nz