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Tuesday, March 5, 2024

Point of Order: Buzz from the Beehive - 5/3/24



Be cheered by the govt’s $20bn transport programme – but then you should ask how much (and how) you will be contributing

Announcing the return of “boot camps” for delinquent Kiwi youths was sure to win headlines for Children’s Minister Karen Chhour.

“Boot camps” wasn’t the language used in the minister’s press statement, let’s be clear. Chhour said the coalition Government is delivering on its promise to create “Young Offender Military Academies”.

But RNZ wasn’t gulled by the minister’s fancy words and posted the news in an item headed First boot camp for young offenders to be running by mid-year, Minister says

The commentariat at that time was still chewing on a bundle of press statements from Transport Minister Simeon Brown.

These statements introduced a bemused public to the draft Government Policy Statement (GPS) on Land Transport.

Big numbers were splashed in the press statement headlines, including an overall sum of more than $20 billion “to get transport back on track”.

This is somewhat misleading. “On track” suggests railways or tram lines.

The government is focused on – or fixated with – roads.

Over the next three years, an investment of around $7 billion a year will prioritise economic growth and productivity, increased maintenance and resilience, safety, and value for money, Brown said.

Environmental and climate change considerations – presumably – are of lesser concern when it comes to transport policy..

But those considerations do feature in another media statement, to welcome the successful launch of MethaneSAT. This came from Space Minister Judith Collins and Climate Change Minister Simon Watts in a statement which hailed “a milestone in the development of New Zealand’s space sector”.

MethaneSAT is a state-of-the-art satellite designed to accurately detect methane emissions and contribute to global efforts to combat climate change. The mission is led by the United States’ Environmental Defense Fund, with New Zealand’s role including hosting the satellite’s mission operations control centre and leading an atmospheric science programme, studying global emissions from agriculture.

Back on earth, the public generally and motorists in particular (if they were sharp) would have wondered about the source of the $20 billion that had been bandied in the ministerial media statements dealing with transport programmes.

The answer can be found several paragraphs into one of the statements. The government is counting on getting the lolly from loans, levies, licensing tolls, taxes – and so on.

The spending highlights are –
But then there’s the matter of how to “balance” the transport budget.

On this score, the government is proposing an increase to the Motor Vehicle Licencing Fee by $25 in January 2025 and a further $25 in January 2026.

It will also provide a Crown grant of $3.1 billion, a Crown loan of $3.1 billion, and …

Tighten your seat belts, folks…

And a 12 cent, 6 cent, and annual ongoing 4 cent per litre increase in Fuel Excise Duty, and RUC equivalent, in January 2027, 2028, and 2029, respectively.

Brown assured us:

We will not be raising FED and RUC this term.

He said he expects the NZTA to consider different ways of funding and delivering major transport investments, ensuring they make efficient use of every dollar spent.

This will likely include Public Private Partnerships (PPPs), increased use of tolling, ‘Build, Own, Operate, Transfer’ equity finance schemes, and value capture, to generate additional revenue and deliver infrastructure in a more efficient manner.

The draft Government Policy Statement on Land Transport (GPS) document is available at www.transport.govt.nz.

Latest from the Beehive

5 MARCH 2024


Foreign Minister Winston Peters will travel to India, Indonesia and Singapore next week to continue the reinvigoration of New Zealand’s relations with South and South East Asia.


Space Minister Judith Collins and Climate Change Minister Simon Watts today welcomed the successful launch of MethaneSAT – a milestone in the development of New Zealand’s space sector.


The coalition Government is delivering on its promise to create Young Offender Military Academies, Childrens Minister Karen Chhour says.

4 MARCH 2024


Transport Minister Simeon Brown has confirmed targeted investment of more than $2 billion over the next three years for public transport projects and services, as part of the draft Government Policy Statement (GPS) on Land Transport.


The Coalition Government will keep New Zealanders safe on our roads with a stronger focus on road policing and enforcement, investment in new and safe roading infrastructure, and targeting the leading contributors to fatal crashes.


The Coalition Government’s priority for investment in the draft Government Policy Statement (GPS) on Land Transport is to support economic growth and productivity and ensure our land transport system allows people and freight to move quickly and safely.


The Coalition Government will increase investment in road maintenance, including establishing a new $500 million Pothole Prevention Fund to tackle the record number of potholes on our roads.


Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely.

Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton

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