Transport
Page updated 24 May 2012
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.
Funding
Since July 2008 all revenue obtained from roading user charges (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 approximately 70% of Vote Transport spending. State highway spending is forecast to account for approximately $12 billion of transport expenditure over the next ten years.
In Budget 2012 the Government announced the third $250 million Crown Contribution towards the KiwiRail Turnaround Plan. The Government has indicated that, pending approval of business cases, it will provide a total of $750 million over the three years from 2010/11 with the objective that the rail freight business becomes commercially viable within a decade.
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 2012/13 year is around $3 billion. The remaining funding in Vote Transport is split between the New Zealand Railways Corporation (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).
