Bennett David: Debate on Crown Entities Public Organisations and  State Enterprises — In Committee 
Bennett David: Debate on Crown Entities Public Organisations and  State Enterprises — In Committee 
[Volume:638;Page:8808] 
DAVID BENNETT (National—Hamilton East) 
: 
 As we look at the financial review of Land Transport New Zealand it is important also to look at a document that came out earlier this year the report of the Ministerial Advisory Group on Roading Costs. That gives us a fairly good indication of how Land Transport New Zealand is going and how this Minister is going in her portfolio. Let us have a look at some of the quotes from that document. It states: “Land Transport NZ should take an enhanced role in evaluating major projects and in monitoring scope and cost.” The report is pretty damning of this Minister and this Government. It states things like: “Papers presented to Land Transport NZ for the release of design funding do not appear to present the full evaluation of incremental costs and benefits for the various options. Therefore it is difficult for the Land Transport NZ Board to make a fully informed decision about the merits of [a decision]. … There does not seem to have been a systematic process to establish the scope of [projects]”. It carries on with comments such as: “… Land Transport NZ appear to have accelerated the funding consent … for [certain projects]. … Unfortunately this is often at the expense of a comprehensive review of the justification for additional scope and the related cost.” It states: “The Advisory Group considers that there is currently a strategic gap in the overall framework. There needs to be greater clarity of outcomes and monitoring against measurable objectives together with strong leadership and governance to achieve these.”  
These are pretty damning comments about a department and about the process it uses. It states: “There is a gap in the existing national strategy and planning framework for land transport.” It states: “Value for money was not identified as a key objective … The performance measures should also include indicators of value for money.” “Land Transport NZ needs to play a clearer role in the strategic process and in funding to achieve outcomes as well as to oversee project scope. … Land Transport NZ needs to be satisfied that projects are still delivering value for money.” But there is more: “The manner in which Land Transport NZ is involved in overall project decisions where major scope change and costs are involved should be reviewed. … The Advisory Group believes the current system used by Land Transport NZ can be improved.” It states: “it is considered appropriate that a review is undertaken of the competencies required of the respective boards” of Transit and Land Transport New Zealand “including the appropriateness of dual membership of the Land Transport NZ and Transit NZ Boards.”  
This has probably been the most damning report that has come out on a Minister this year and there have been other reports on other Ministers who have failed to succeed in their portfolios. Essentially when a ministerial advisory group on roading costs can come out and present a report that says there are fundamental problems in the way that this department is carrying on its business then we have a major problem—a major problem that this Minister has to follow up in the next-steps review that is coming out soon.  
The Minister will be well aware that this department is not performing at the level it should be. We are not getting the value for money that we are putting into Land Transport New Zealand simply because of the inadequacies of this department and also of the governance that this Government should hold over this department. It is up to the Minister and the Government to run this department in a way that delivers the outcomes that people expect from that money. It is fine for Government Ministers to go around the country saying the Government is putting more money into Land Transport New Zealand but we are not seeing the outcomes—we are not seeing the delivery of that money. We are seeing a system that is not working and a Minister who is sitting there knowing that it is not working and who is not making the changes to get value for money. How can this Government’s Ministers stand up in front of New Zealanders and say they are putting more money into land transport when they are not getting the outcomes because the system is not working. They need to get out there and devise a better way of doing this so that we do get the outcomes that are commensurate with the money being put in.  
Another example is one the Greens have just raised—that of public transport and electrification. Today we heard the Prime Minister say that it is a matter of not if but when. Well when is it going to be? When will the people of Auckland know that they can catch a train because it has not been stopped through signalling faults or people not having made decisions about whether trains will run on diesel or electricity? When will those decisions be made so that Auckland councils will have the ability to make decisions for funding in the future? 
The CHAIRPERSON (Ann Hartley) 
: I just point something out to the member. I was not aware until a minute ago that Transit’s report has not actually been reported back. So it should not— 
DAVID BENNETT 
: No we were not talking about Transit. 
The CHAIRPERSON (Ann Hartley) 
: Yes you were. The only thing is Land Transport New Zealand— 
DAVID BENNETT 
: Yes that is what I quoted. 
The CHAIRPERSON (Ann Hartley) 
: Yes—so it is Land Transport. I call Keith Locke but I remind members again that Transit New Zealand has not been reported.