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Page updated 16 May 2013

Overview of Treasury information, research and policy publications about transport in New Zealand and Government expenditure on transport.

The Treasury's Role

The Treasury provides "second opinion" advice on a wide range of transport policy issues, as well as "first opinion" strategic advice on transport sector design and funding. We work closely with the Ministry of Transport and other transport agencies to ensure the transport sector contributes to the economic growth of New Zealand.

The Treasury also plays a key role in the monitoring of Air New Zealand, of which the New Zealand Government is the principal shareholder.


All revenue obtained from roading taxes (Fuel Excise Duty on petrol sales, Road User Charges on diesel vehicles, and Motor Vehicle Registration charges) is dedicated to land transport activities. This revenue accounts for the majority of Vote Transport spending. State highway spending is forecast to account for approximately $12 billion of transport expenditure over the ten years 2012/13 to 2021/22.

In Budget 2013 the Government announced $94 million in 2013/14 as part of the Government’s investment in the KiwiRail Turnaround Plan. The new funding follows a previous $750 million Government investment in the Turnaround Plan, disbursed over the last three years with the objective that the rail freight business becomes commercially viable within ten years.

The majority of Vote Transport funding is administered by the New Zealand Transport Agency. The Agency is charged with giving effect to the Government Policy Statement on Land Transport Funding (GPS) in the development and administration of the National Land Transport Programme (NLTP). The GPS provides a framework for the Agency to make funding decisions in the development of the NLTP and target expenditure on transport activities in the 2013/14 year is around $3.1 billion. The remaining funding in Vote Transport is split between KiwiRail, the Ministry of Transport and other Crown Entities in the sector (Civil Aviation Authority, Maritime New Zealand and the Transport Accident and Investigation Commission), Meteorological Service of New Zealand and some other third parties.

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