Policy | 2014

Transport
HIGHLIGHTS
The Issue
Transport is at the heart of a modern economy, connecting producers to markets and
offering communities opportunities for economic development.
It is also a significant cost: the country spends over $20 billion a year on transport including
$8 billion a year in oil imports and $3 billion a year in expenditure by the government
through the National Land Transport Fund (NLTF).
Under the current government, the value for money taxpayers receive for their transport
taxes has fallen dramatically.
Rather than work on improving the whole transport system as an integrated, multi-mode
network, the current government has been obsessed with a handful of hugely expensive
projects that it selected for political reasons.

Labours Plan
Labour will rebalance the government's transport expenditure away from low-value projects
chosen for political reasons towards the investments that will best improve growth, reduce
congestion, and move our transport system on to a more sustainable footing.
That means reviewing and delaying some of National's Roads of National Significance
(RoNS) projects to free up funds for upgrades to rail, coastal shipping, public transport,
regional roads, safety, and cycling.
The current funding allocation is so heavily focused on the RoNS that a moderate reduction
in funding for new highways releases sufficient money for major increases in other areas.
Currently, 35% of transport spending is going on new highways. Two thirds of that goes on
the RoNS. Most of that spending the government itself classifies as low value because the
benefits barely exceed the costs, or are even less than the costs.
Labour will:
Build a 21
st
century transport system that provides choice and is cost effective.
Rebalance the transport budget away from the current governments exclusive focus on
motorway projects towards a more rational investment in the most efficient and
sustainable combination of transport modes. For freight this means investing in roads, rail,
our ports, and coastal shipping. In our cities it means a greater emphasis on public
transport, and walking and cycling.
Invest in the Congestion Free Network for Auckland.




Labour will take the current governments draft Government Policy Statement for Transport
and re-balance it to better achieve growth, value for money, and sustainability.

Freight transport
Labour will invest intelligently, on the basis of solid business cases, in multi-modal freight
transport. We are not ideologically committed to one mode over another. In each instance,
for each freight corridor, we will make the most beneficial, cost-efficient, and sustainable
investment choices.
Regional and local roads
The current government has slashed funding for new local roads and local road maintenance
in real terms so that it could pour more money into its low-value RoNS projects. This has left
cash-strapped councils to pick up the tab, which has pushed up local government debt, and
seen local roads degraded when maintenance has been deferred.
Belatedly, the current government has promised to partially reverse these cuts to fund a
handful of projects, selected by the government. Its too little, too late. And, once again, it is
the current government dictating to local communities rather than giving them choice.
Labour will
Give local communities more of a say on how the money is spent in their areas.
Significantly increase the funding ranges for new local roads, local road maintenance,
and regional improvements.
Review the Funding Assistance Ratio to make it fairer and more efficient, providing
relief for local government and reflecting the national benefit of local roads.
Invest in forestry roads to extend the network and make them safer.
Rail freight
Rail freight is more energy-efficient and cheaper than road freight but decades of asset-
stripping left our rail network severely degraded. While rail is growing rapidly overseas, in
New Zealand it is only now getting back on track thanks to the previous Labour
Governments decision to buy back KiwiRail.
Labour will
Re-open the Napier to Gisborne rail line
Investigate a rail line to Marsden Point and upgrading the North Auckland Line to take
pressure off the roads north of Auckland.
Continue to keep KiwiRail in public hands and invest in its turn-around plan.
Ports and coastal shipping
Our port system suffers from a lack of coordination, which results in ports being played off
against each other by international shipping lines and over-capitalisation. This is a poor
outcome for New Zealand. At the same time, coastal shipping is under-developed, resulting




in higher than necessary economic and environmental costs as freight that could travel by
sea is carried on the roads.
Labour will
Develop a national ports strategy
Implement the Sea Change strategy we launched in 2008, which aims to revitalise
and transform coastal shipping in New Zealand.
Allocate specific funding for Coastal shipping from the National Land Transport Fund.

Personal transport
Public transport
Boosting public transport isnt just about improving the commute for people who use it. Its
also about giving people choices so that fewer people need to drive to work, leaving the
roads freer for those who choose to or need to drive. Each person taking a bus, train or ferry
is a car off the road, which means less congestion, faster journeys for freight, and less need
to expend large sums of taxpayer money on more roading projects.
The current government has refused to make the much-needed investments in public
transport, even as patronage has surged to the point where services are over-flowing.
Whenever new capacity is added to public transport, we see a commensurate surge in
patronage to fill that capacity (eg. the Auckland EMUs).
People want to use public transport as a cheaper, environmentally-friendly alternative to
driving; its up to government to ensure that services are convenient and frequent enough to
meet demand.
Auckland: Thanks to substantial investments begun under the last Labour Government,
the Auckland motorway network is now more or less complete. The task ahead is to
complement the road network with a 21
st
century integrated public transport network.
Labour will
Build the City Rail Link immediately, funding it 50:50 with Auckland Council. We
wont wait until 2020 and hold back Aucklands growth and prosperity for another
five years.
Negotiate with Auckland Council a 30 year transport plan for Auckland, including
funding, with our starting point being the Congestion Free Network. As well as the
City Rail Link, this includes giving priority status to rapid transit busways in the North
West and South East, electrification of the rail to Pukekohe, rail to the airport, and
ensuring the next harbour crossing includes rail to the North Shore.
Integrate transport infrastructure with residential and urban development

Wellington: Labour will invest heavily in Wellingtons public transport, including retaining
the Capital Connection service.

Christchurch: public transport policy will be announced shortly.




Labour will
Invest significantly in a modern, wifi connected, people friendly, affordable and
efficient public transport system that works for our cities.
Increase public transport investment significantly. Over the next ten years, annual
public transport funding will increase to match new state highway funding.
Walking and cycling
Walking and cycling are cheap, low-infrastructure, healthy, and environmentally-friendly
modes of transport.
For six years, the current government has disregarded people who choose to walk or cycle
and refused to fund walking and cycling infrastructure to make it easier and safer. This
ideologically-driven attitude has seen New Zealand fall behind the rest of the developed
world, where a cycling renaissance is taking place.
The current governments new commitment of $100 million over four years is good but too
little and too late, and it isnt a permanent boost from within the National Land Transport
Fund.
Relatively small investments, in the scale of the transport budget, could give our cities world-
class cycling infrastructure as seen through much of Europe. Safe, grade-separated
cycleways give more people the choice to cycle, especially as petrol becomes more
expensive. That helps to decongest the roads, save the country money on oil imports, clean
up our air, and reduce our climate impact.
Labour will
Ensure that future roading projects will make provision for cycling, for example by
bikeway design alongside roads or with separate bikeway networks.
Make cycle and pedestrian safety a priority and ensure that legislation, the road code
and by-laws are made sufficient to protect all road users.
Introduce new safety zones across suburbs and towns during school commuting
hours, to help facilitate safe cycling and walking to and from school.
Increase walking and cycling investment significantly.

State Highways
Labour will continue the planned investment in new state highways and state highway
maintenance with the exception of some of the current governments RoNS projects, which
will be delayed or cancelled.
Labour will
Prioritise highway investments that stack up economically and environmentally.
Review RoNS projects that are under construction, and look to modify negative
impacts. Where construction is not underway, we will consider affordable, safe and
environmentally friendly alternatives.
Require heavy trucks to not use the fast lane in multi-lane roads.




Specific RoNS projects
Puhoi to Wellsford: the Operation Lifesaver! improvements to the existing Puhoi to
Wellsford road will fix the crash black spots and traffic bottlenecks at a cost of $320
million, delivering most of the benefits more quickly and cheaply than building an entire
new highway at a cost of $1.7 billion.
Waterview: Labour will complete the Waterview project, which we began.
Waikato Expressway: Labour will complete the Waikato Expressway within the
scheduled timeframe.
Kapiti Expressway: Labour will re-evaluate the Kapiti Expressway design to the extent
that it is cost-effective with a view to increasing its usefulness, and modify the design to
reduce negative impacts and connect rather than divide communities.
Transmission Gully: Labour supports the Transmission Gully project but not the $3 billion
high-interest mortgage the current government has taken out to pay for it in the form of
a Public-Private Partnership. Labour will seek ways to reduce this unjustifiable cost.
Basin Bridge Flyover: Labour will drop plans for the Basin Flyover and look at
alternatives to facilitate Bus Rapid Transport
Christchurch motorways: these projects will continue unchanged.
Future RoNS: We will review each of the future RoNS National has announced to see if
they represent good value for money in light of the other calls on the transport budget.

Transport safety
Labour will keep a relentless focus on road safety by focusing on the highest areas of
enforceable risk that includes speeding, drink driving, intersection behaviour and safety belts.

Labour will
Improve road transport and bus driver regulations around meals and rest breaks.
Introduce labour standards into Transport Operator Safety Systems in the trucking
industry.
Investigate a Safe Rates system for the freight and courier industries, where
remuneration levels and methods of contracting are considered as part of the overall
safety requirements for drivers.
Consider the introduction of rural driver training programmes, especially for young
drivers in poorer disadvantaged communities.
Expand access to driver testing and licensing into smaller towns where access to a car
is the only means of getting to education or work.
Provide safe cycling alongside major roads or transport corridors.

Safe and Secure Air Transport
The information disclosure regime determined by the Commerce Commission is intended to
strike a balance between a fair return to investors in airport infrastructure and lower prices to
airlines, which are reflected in lower airfares to the travelling public.




Labour will
Evaluate the progress of airport pricing consultations under this regime. If a sensible
balance is not struck, Labour will consider a negotiate/arbitrate regime.
Also encourage an expansion of air services to other countries where there is likely to
be an expansion of trade or where there may be potential for attracting significant
new growth in tourism to New Zealand.

Lower holiday costs
Currently, owners of light trailers and caravans must pay an annual licensing fee (usually
referred to as registration) of $28, plus a $7 administration fee.
It is a tax that generates a huge amount of hassle for the 600,000 light trailer and caravan
owners in New Zealand while bringing in little revenue for the government. With 20% of the
cost to owners going on administration, it is also highly inefficient. No policy justification
exists for charging a registration fee for light trailers and caravans; its just a money grab.
Labour will remove the annual licensing fee for light trailers and caravans. This will
reduce revenue into the National Land Transport Fund by $17 million a year
The current government unfairly increased Road User Charges for owners of motorhomes
and campervans when it changed from assessing RUC based on actual gross weight to using
maximum allowable weight, instead.
Many campervans and motorhomes are built on heavy chassis or converted from buses but
never carry anywhere near their maximum allowable weight. This means they have far less
impact on the roads than a fully-laden commercial truck with the same maximum allowable
weight. Charging them the same RUC as a much heavier vehicle goes against the principles
of the RUC Act. This change has seen RUC costs unfairly double for some motorhome and
campervan owners.
Labour will create a special RUC class for motorhomes and campervans that reflects their
actual impact on the roads, as suggested by the AA.

ACC levies
At present the bulk of vehicle registration costs relates to ACC levies. Motorcyclists have
been particularly penalised by ACC levy increases and were not included in recently
announced levy reductions. Labour is concerned that vehicle registration costs are
penalising those who own more than one vehicle, are placing undue financial pressure on
those who only travel short distances, such as the elderly, and may be leading to an increase
in the number of unregistered vehicles on the road.
Labour will carry out a comprehensive review of Motor Vehicle Account levies,
including an investigation of alternative sources of revenue so that everyone pays a
fairer share and no one group is heavily burdened.
ACC expects the Motor Vehicle Account to be fully funded within a year. Changes to Motor
Vehicle Account levies should reflect the reduction in required income from that point.