HOME   >   OUR MPS   >   JUDITH TIZARD   >   SPEECHES

Thank you very much for inviting me to your annual conference.

As you all probably know, I am an Auckland-based MP and also the Auckland Issues Minister, and because I have to spend much of most of my weeks in Wellington, it needs a special reason to persuade me travel from my home town to Wellington at the weekend as well.

The Road Transport Forum is just such a special reason, and I know that Transport Ministrer Annette King, who is actually a Wellington-based MP, is disappointed she cannot be here to welcome you personally to the Harbour Capital.

She is even more disappointed not to be at a conference that has adopted such a strongly Wellington theme --- Absolutely Positively Trucking.

The theme has a real sense of energy and purpose about it, and Annette said to me during the week that it could also aptly be used to describe the Wellington Lions rugby team which is now absolutely positively trucking toward the very first Air New Zealand Cup title.

I have my own views on that, of course, but, if I can wear my other hat as Associate Arts Culture & Heritage Minister for just a moment, and paraphrase the lyrics of Steve Earle, the theme of your conference conjures up the vision of “steel belts hummin’ on the asphalt, with the radio blastin’ and the bird dog on”.

But enough, for the moment anyway, of the romance of trucking, and back to business. This forum provides an excellent opportunity to focus on ways to work together to maximise value in the road transport sector, an area of great interest to myself, as Associate Minister of Transport, and the Government.

As road transport operators, you have a key role to play in New Zealand – its transport, logistics and economy. To use a cliché that really means something in your industry, you help keep the wheels of this country moving.

Currently about 80% of freight is carried by road and as the volume of freight generally grows, that percentage is not expected to vary.

I thoroughly endorse the aim of the Road Transport Forum – helping build a New Zealand in which the industry, businesses and communities can prosper.

As you will be well aware, that aim is very much aligned with the New Zealand Government’s major goal of economic transformation.

The Government recognises the enormous value of investing in world-class land transport infrastructure as a vital building block in the country’s economic transformation. That is why Budget 2006 delivered big opportunities for the road transport sector, and set the scene for putting in place far more quickly the transport infrastructure New Zealand needs.

New Zealanders have always adapted quickly to meet changing economic conditions, but if we are to retain our competitiveness in the global marketplace, we must transform our economy.

The reality, however, as Budget 2006 recognised, is that we cannot do that without transforming our infrastructure as well. That task touches on everyone in this room in one way or another.

Transformation is no simple task and it requires some very clear strategic direction on the part of Government.

To achieve this, the Government has made infrastructure a top priority, and Budget 2006 included an unparalleled funding package for roading investment.

To address the shortfall in the State Highway Forecast and across the whole National Land Transport Programme, the Budget provided an extra $1.3 billion over the next five years and provided guarantees against future erosion of revenue.

And just a couple of weeks ago, on August 29, Finance Minister Michael Cullen and Annette King announced that the Government has decided to extend this guarantee for the State Highway Plan to six years to give the land transport sector even greater certainty. That is excellent news.

This funding announced in the Budget reinstated all the state highway projects that were deferred earlier this year, but went beyond that as well by providing an extra $425 million to speed up major state highway projects in the main centres.

The funding that we committed in the Budget means the Government will spend roughly $300 million more on land transport than the total revenue collected from fuel excise duties, road user charges, and motor vehicle registration fees over the next five years. That shows how serious we are.

But the Budget did not simply provide funding, however. The Government recognises that we need to provide greater certainty for the future.

That’s why we are taking a new approach to funding and planning land transport. This approach involves providing a cost and revenue guarantee for state highway construction and guarantees revenue for all other land transport activities through a six-year appropriation. This will provide greater certainty for the delivery of state highway construction projects by creating a buffer for cost increases and revenue decreases.

And because we are spending so much we have also put procedures in place to ensure we are getting value for money. The Government is undertaking a review of value for money in the transport sector, and the Minister has already received a draft report from the Ministerial Advisory Group.

I would now like to address some specific matters that I know are of particular concern to you, the first of which, of course, is that you want to increase productivity by having the current gross weight limit for combination vehicles increased from 44 tonnes to 50 tonnes.

I certainly understand and appreciate your perspective of making productivity gains wherever possible, but this is a very complex issue.

Research has shown that such a change would also have environmental and safety impacts, and is likely to have an impact on other modes. There are likely to be additional infrastructure costs and we have to ensure that the current safety and environmental outcomes are at least maintained and also that these costs and the benefits are shared equitably.

It may mean that those making the gains will need to contribute to the additional costs. Annette has asked the Ministry of Transport to look at how to progress this issue, and I know she has met with Tony Friedlander twice about it. Once a decision is made, we would expect to work with the Road Transport Forum and the industry.

Another matter which I know is of interest to you is the Auckland Road Pricing Evaluation Study. As you’re aware, the Evaluation Study was released on 17 March, and a six week consultation and submissions process commenced.

I want to thank the Road Transport Forum for your submission, and your contribution to the public debate on road pricing. We are currently in the process of considering all the submissions and it is my hope that we will be able to release the results of that submissions process in the near future.

On another issue, I am pleased to be able to update you on progress with the Operator Rating System.

I know the Road Transport Forum has been a very strong supporter of this concept. Following the business case for the system being completed in 2004, I can now confirm that Land Transport New Zealand is able to fund the development of the Operator Rating System over the next three years.

Already this year development of the Operator Rating System has progressed significantly. The Land Transport Act 1998 now allows the Minister for Transport to make an Operator Safety Rating Rule, which will underpin this development work. Work on this Rule is progressing well and I am pleased to learn that the Road Transport Forum has been involved in its early development.

It is intended that this Rule will be released in its yellow draft for public consultation in February next year. The feedback we receive on this from the Road Transport Forum members will be very important.

Among the matters the Rule will provide for is the public release of an operator's rating. If this occurs, I expect it will strengthen the benefit of the system, as a higher rating could provide a good selling point to customers and increase the confidence of other agencies and industries that work alongside the transport industry.

I also want to acknowledge the significant contribution of the Road Transport Forum in the development of the recently completed Land Transport Rule, Heavy Vehicle Brakes. I know officials are grateful for your valuable work, and I am told that this Rule will reduce heavy vehicle involvement in road crashes by accelerating the uptake rate of better brake technology.

I am also aware that this industry has some concerns about the testing of heavy vehicle brake systems, and I can assure you that officials are aware of those concerns and they will continue working alongside you to ensure the issues are resolved.

We can achieve the best results by continuing to develop our working relationships in this way. The Government is committed to ensuring that the communication lines are open and operating well.

I know the road transport industry has other ideas and initiatives it is working on, and I look forward to hearing about these in the future.

This conference is, of course, an opportunity for your industry to share and discuss any such ideas and develop them further, and you may well raise some of them when Transit New Zealand chief executive Rick van Barneveld talks to you later this morning.

I want to finish today by reiterating the vital role your Forum is playing and will play in the economic transformation of our country, as well as supporting and promoting the interests of its members at the same time.

The Government appreciates your involvement, and looks forward to continuing to work collaboratively with you. Thank you very much for inviting me to join you today.

 

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