Simon Bridges has released the final version of the 2015/16 – 2024/25 Government Policy Statement (GPS) following on from the draft version earlier this year. The GPS is effectively the top dog when it comes to transport funding and policy as in the words of the minister:
The Government Policy Statement on land transport (the GPS) sets out the Government’s strategic and policy goals for land transport, as well as the funding direction necessary to achieve them. It guides not only an investment of $3.4 to $4.4 billion per annum from central government, but around $1.0 billion a year from local government.
The GPSs relationship to other key planning documents is shown below.
Very little has changed from the draft version we saw with the Ministry of Transport saying some of the changes are:
- The upper ranges of funding available for public transport have increased, so up to $115 million more will be available for public transport projects between 2015/16 and 2024/25. This takes the potential spending on public transport to a total of $4.585 billion.
- The objectives set down in the final GPS 2015 have been amended to ensure they are clearer and more well-defined. A new ‘efficiency’ objective has been added, while the ‘demand’ objective has been clarified so it refers to access to social and economic opportunities.
- A definition of major metropolitan areas (reflecting the Statistics New Zealand definition) has been added, clarifying those areas which are eligible for funding under the Regional Improvements activity class.
- The Auckland Transport Package (announced by the Government in 2013), Accelerated Regional Roading Package (announced in August 2014) and the Urban Cycleways Package (announced in September 2014) have been referenced throughout GPS 2015. While funding for these will be provided in addition to funding for activity classes, the packages will be considered and undertaken in a way consistent with other projects funded under the GPS.
- The role that technology and innovation can play in managing network access and capacity has been reflected throughout the document, including the new crosscutting reporting line which will ensure technology investments (and the returns on these investments) will be transparently recorded.
In other words there’s been some tweaking around the edges but no significant change. That means there is still some massive hypocrisy and double standards contained within the document. As a quick example, while noting that vehicle travel has basically flat-lined and will “remain more muted than in previous economic cycles“, the maximum possible funding for state highways increases by 4%. By comparison almost all talk in the document about improving PT services comes with the caveat of “if justified by demand“. Simplified you could say PT investment has to justify its existence but road investment doesn’t.
Related, the maximum possible funding for PT increases by 3.5% per annum and the MoT say “This rate of increase reflects current and projected patronage growth“. Of course that level of projected patronage growth only exists because of the level of funding being made available limiting services. If Auckland Transport had more funding they could roll out the new network much faster and of course by doing so we would see stronger patronage growth much sooner.
One of the key things about the GPS is the funding ranges it sets. These funding ranges are meant to give the NZTA some (small) amount of flexibility when setting the National Land Transport Programme (NLTP) which sets out the projects that are likely to be funded. The NZTA could theoretically use the maximum funding ranges in some categories at the expense of others however overall the exact amounts selected tends to be closer to the midpoint between the upper and lower figures.
And using the mid-point between the two figures, this graph highlights where the money is going over the next decade.
In terms of the maximum extra $115m possible for PT, for the next three years the difference between the draft and the final version over the next 4 years are compared to the draft are just $5 million in 2016/17 and $10 million in 2017/18.
In addition to the table above the GPS also lists the funding outside of the categories above, in other words money the government is paying directly for transport projects such as the governments $100m Urban Cycleway funding that they announced in the lead up to the election. One of the things that’s odd about that particular funding stream is it seems to be broken up into state highways and local roads elements which is something that hadn’t been mentioned before.
Overall the direction of transport policy has changed little since 2008/09 and the focus remains on building massive state highway projects – most with low value outcomes – while the areas of the transport system that are seeing the most growth get ignored.