King Annette: Land Transport Management Amendment Bill — Second Reading 
King Annette: Land Transport Management Amendment Bill — Second Reading 
[Volume:648;Page:16980] 
Hon ANNETTE KING (Minister of Transport) 
: 
 I move  
That the Land Transport Management Amendment Bill be now read a second time 
. Most submissions were very supportive of the principles underpinning this bill and they offered many constructive suggestions to improve it. I would like to thank the members of the Transport and Industrial Relations Committee for the work they have done in strengthening this bill. I support the changes that have been recommended. 
This bill will further embed the Government’s push to ensure that we have a transport planning and funding system that reflects the sophistication and complexity of the 21st century. The bill will see the full hypothecation of fuel excise taxes for land transport purposes. This is a very significant point in the history of land transport funding in New Zealand and will involve about $600 million per annum previously retained in the general Crown accounts being now ring-fenced exclusively for land transport activities. The bill also clarifies the existing legislation in respect of funding of land transport activities from revenue received from motorists and heavy-vehicle users. 
The bill has a requirement for a Government policy statement to guide the allocation of national land transport funds by the New Zealand Transport Agency on the basis of regional transport plans. As Minister of Transport I will remain responsible for decisions around the allocation of the fund to New Zealand road safety initiatives based on recommendations developed by the agency. The bill also provides for moneys from the National Land Transport Fund to be paid for activities that benefit users of pleasure craft. This is in lieu of a refund of the petrol tax paid by recreational boaties. This provision received very widespread support from the marine sector. 
The select committee has recommended allowing the funding to be used for more generic search and rescue activities. Under the bill regional land transport committees will be replaced by regional transport committees. These committees will have enhanced functions including the preparation of new 3-yearly regional land transport programmes and regional fuel tax schemes. The bill as introduced reflected the Government’s decision to move to a 3-yearly regional land transport programme and a 3-yearly national land transport programme. This move will increase certainty in the sector and will reduce consultation and “planning churn” and was well received by submitters. There will be increased flexibility to combine planning documents and consultation processes. 
To further acknowledge local government’s concerns the committee recommends that the bill expressly requires the agency to take into account the regional priority attached to activities when making decisions on the National Land Transport Programme. Groups such as the Automobile Association the Road Transport Forum and local government made strong submissions about the need to be involved in decision-making processes around land transport. The bill as reported back acknowledges such views. 
The Government’s commitment to rail’s role as a critical part of a sustainable transport system is evidenced by our very recent announcement that the Government will be purchasing Toll’s rail interests. I therefore strongly endorse the committee’s recommendation that an expressed reference be made to rail and coastal shipping in the purpose section of the Land Transport Management Act. 
The bill will see Land Transport New Zealand and Transit New Zealand replaced by a new entity—the New Zealand Transport Agency. Transparency and accountability of this agency was a major issue for the select committee and it has recommended improvements to the bill as a result. Given the role of the New Zealand Transport Agency as a funder and provider of land transport activities decision making must be transparent and there must be suitable accountability provisions. 
Finally the bill will allow regions to use a regional fuel tax to fund priority projects that cannot reasonably be funded from any other source within the time frame desired by the region—for example the electrification of the Auckland rail network. This is a vital project to achieve a sustainable future and to give users of public transport greater choice. It will be up to each region to decide whether to introduce a regional fuel tax. The bill provides that a region may raise a tax of up to 10c per litre for land transport projects with expenditure on roading projects capped at 5c. Many local government submitters although generally supportive of a regional fuel tax sought to remove the 5c cap on roading projects. The committee has recommended that changes be made so that the funding of facilities—such as walking cycling and bus lanes; and high-occupancy vehicles—does not crowd out the demand for general traffic projects under the 5c roading cap. 
In the Auckland region because it already has a well-developed idea of what projects it would like to fund under a regional fuel tax scheme the initial Auckland scheme will be developed by the Auckland Regional Council. The council will need to take account of the views of the Auckland Regional Land Transport Committee. 
I would also like to take this opportunity to signal my intention to introduce a Supplementary Order Paper. Members will be aware of recent media attention given to the rise in fuel prices. The Government always expected that a regional fuel tax scheme would need to provide for phasing in order to meet the affordability criteria that Ministers must apply when considering a regional fuel tax. Phasing will be a requirement of a regional fuel tax in the bill. Once again I would like to thank select committee members for the work they have done on this bill. It is a very significant piece of legislation.