Transport Agency assessment of the National Land Transport Programme

Under the Land Transport Management Act (LTMA), the Transport Agency is required to provide an assessment against the core requirements for the National Land Transport Programme (NLTP). These requirements are that the NLTP:

  • contributes to the purpose of achieving an effective, efficient and safe land transport system
  • gives effect to the GPS
  • takes into account relevant strategies, programmes and plans, including regional land transport programmes.

While this section provides a summary of the NLTP assessment, other sections provide greater detail on the contributions that the NLTP makes to the purpose of the LTMA.

For more information about the contribution the NLTP investment makes to each of the priority areas, refer to the national overviews outlined below:

Contribution to the purpose of the LTMA

Effective

An effective network allows the movement of people and freight where they need to go, and in a timely manner.  The Transport Agency facilitates this outcome by targeting an integrated ‘one’ network for customers, which maximises returns for New Zealand.

The effectiveness of the NLTP is tested through the evaluation of activities and combinations of activities, and their alignment against best practice principles and development practices.

The NLTP is considered to be effective as:

  • The short term priorities and long term goals of the Agency, influencing our strategic direction and work programme development, consistently and actively target one network, integration, resilience and returns to customers.
  • The Transport Agency and all transport stakeholders employ the full suite of interventions, including regulatory, infrastructure and non-infrastructure to ensure that customers are fully informed and can access the network in a safe and reliable manner.
  • All activities funded through the NLTP are assessed under the Investment Assessment Framework for their effective contribution to the national strategic priorities.
  • Activities are expected to  be developed through the Business Case Approach, which allows all stakeholders to agree upfront the core problems or opportunities within the network or corridor, to pursue only those interventions which are consistent with the priorities for the network, and to consider the full suite of possible interventions to address that issue. The business case allows for a better achievement of outcomes and better informed decisions.

Efficient

The NLTP is considered to be efficient as:

  • the NLTP is developed and delivered within anticipated available funding:
    • the NLTP has been developed so that investment levels proposed in the 2015-18 NLTP match the expenditure target available in the GPS, which reflects the Government’s revenue expectations from all sources
    • the NLTP will continue to be delivered under an endorsed cash flow management approach so that expenditure generally will match available funding over time, with seasonal and other fluctuations managed through the use of short-term borrowing facilities from the Crown.

Safe

Improving road safety is a key priority for the government and the Transport Agency. The NLTP directs 23% of its expenditure towards safety outcomes during the 2015-18 NLTP, although safety outcomes can also be achieved through other investments which improve the overall levels of service on the network. This expenditure is across all activity classes.

The roading network is maintained and operated to service levels appropriate to the function of each part of the network. Investment under the NLTP will vary from behavioural (road safety promotion) and enforcement (road policing), to maintenance, operation and renewal of the network, and through to infrastructure and service improvements depending on the significance of safety issues, risk factors and the mix of activities needed to create a safe system.

As a rule, NZ Transport Agency investment approvals for improvements in roading and walking and cycling infrastructure require that a safety audits be undertaken at key stages to ensure that critical issues are identified and resolved during development.

A significant suite of work is also taking place across the Agency, central government and wider stakeholders which are not represented in the investment programme, but which will lead to substantial safety gains. These include recent policy changes to the Blood Alcohol Levels, recent and ongoing amendments to the driver licensing rules, continued focus on regulations and regulatory compliance, and the safer speeds programme.

Giving effect to the GPS

The Investment Assessment Framework (IAF) has been developed to assist the Transport Agency to meet its requirement of giving effect to the GPS. The IAF incorporates the priorities, objectives and results areas identified in the GPS into a set of wider Transport Agency outcomes that it intends to deliver from investment in the NLTP and other activities. The IAF provides the framework for its investment decision-making for the NLTP.

These Transport Agency outcomes are not specific to any one NLTP; they continue from one NLTP to the next, although the government may change the emphasis on particular outcomes through its priorities and impacts stated in the GPS.

The IAF is summarised below or refer to the full details in the Planning and Investment Knowledge base(external link).

Three key factors are used to develop an assessment profile which to values and prioritises activities for inclusion in the NLTP and then decide whether the Transport Agency will invest in the activities. These are:

Strategic fit

Effectively this provides the "line of sight" to the GPS priorities, objectives and results.

The strategic fit assessment looks at the relevance and significance of the problem, issue or opportunity in relation to desired transport results, from a national perspective. For each type of activity it assesses how the problem/issue/opportunity:

  • matches the desired GPS result(s)
  • is significant in relation to the desired GPS result(s)
  • is significant in relation to the scale of the gap to the appropriate customer level of service or performance measure
  • is significant as part of an end to end journey
  • is significant from a national perspective (given local, regional, national perspectives)
  • is significant in relation to GPS timeframes, i.e. a significant issue/opportunity within 3/6/6+ years

Effectiveness

The effectiveness assessment factor considers the contribution that the proposed solution makes to achieving the potential identified in the strategic fit assessment and to the purpose of the Land Transport Management Act 2003. It assesses the activity for consistency against the business case, and how well it will deliver on the results.

The rating determines how effectively the solution is:

  • outcomes focused; addressing strategic fit and appropriate levels of service
  • integrated; with land use, strategic planning, modes and other activities
  • correctly scoped; consistent with scale of problem, role within the wider network, and application of the investment hierarchy
  • affordable; within the NLTP and over the whole lifecycle  of the activity
  • timely; benefits are both timely and enduring, and
  • confident in delivery; managing risks for implementation and return.

Benefit and Cost Appraisal

The benefit and cost appraisal is a value for money measure which considers how well the proposed solution maximises the value (that can be monetised) from the resources used (that can be costed), and the timeliness of intervention. 

Assessment of improvement activities uses the benefit–cost as the default approach. Cost-effectiveness and performance comparisons are used for road maintenance and public transport programmes.

Assessment profile

An assessment profile is developed from the three factors. , this provides the basis for comparison and prioritisation with other activities nationally. In general, activities with higher rating assessment profiles will be considered ahead of those with lower profiles for inclusion in the NLTP and for Transport Agency investment.

A priority order is assigned to activities using each of the three factors. Strategic fit and Effectiveness are gateways for activity development, with the benefit and cost appraisal determining final prioritisation. As a rule, only proposals assessed with at least a medium strategic fit and medium effectiveness will progress to prioritisation for inclusion in the NTLP.

Proposals assessed as having low strategic fit remain at the strategic business case stage and proposals assessed as having low effectiveness are required to undertake further development within the programme business case, or stop.

Taking account of relevant strategies and plans

In developing the NLTP, account was taken of relevant strategies, plans and programmes as set out in the table below. Account will continue to be taken of these in delivering the NLTP.

Strategy, plan or programme How it was taken into account in developing the NLTP
Connecting New Zealand

By giving effect to the GPS – the GPS has been developed based on the policy direction given in Connecting New Zealand to improve network efficiency of transport

National Infrastructure Plan

By giving effect to the GPS – the GPS has been developed based on the strategic direction given in the National Infrastructure Plan to improve the use of existing networks, and appropriately allocate new investment. These are fundamental to the Transport Agency Investment principles, in particular the investment hierarchy.

Safer Journeys Road Safety Strategy

Through assessment of proposed activities under the Transport Agency Investment Assessment Framework, which assesses the priority of the safety components of activities based on priorities in the Safer Journeys Road Safety Strategy. In addition, all improvement activities are required to meet best practice design guidelines and undertake safety auditing through development and implementation.

New Zealand Energy Efficiency and Conservation Strategy (NEECS)

By including in the NLTP proposed activities that will achieve impacts sought in the GPS that contribute to NEECS, such as easing severe urban congestion, promoting appropriate mode choice for travel and understanding and mitigating adverse environmental effects.

Regional Land Transport Plans (RLTPs)

By including in the NLTP proposed activities that have been included in RLTPs, taking account of regional priority setting, discussion, consultation and negotiation involving the Transport Agency

One Network  Road Classification system

Through assessment of proposed activities under the Transport Agency Investment Assessment Framework, which assesses the strategic fit and effectiveness of maintenance and improvement activities relative to their function  and level of service requirements within the classification system

Regional Public Transport Plans (RPTPs)

By including in the NLTP proposed activities that have been included in RLTPs developed by Regional Transport Committees, taking into account RPTPs. The process for developing the NLTP includes regional discussion and confirmation of priorities from RLTPs involving Regional Transport Committees (including the Transport Agency representative)