King: Opportunities ahead for public transport
The Government plans to introduce legislation to enable regional councils to provide better local public transport
services, says Transport Minister Annette King.
Ms King says the changes follow a review by a group, comprising representatives of central government and local
government and public transport operators, of current public transport legislation.
The proposed legislative changes will give regions the power to set standards that all commercial services will be
required to meet over time, she says. These will apply to scheduled bus and commuter ferry services nationwide, but not
to long-distance coach and ferry services (such as the Interislander) or rail, school services provided by the Ministry
of Education, or taxi operators.
"Improved public transport services are a key to achieving our goal of environmental sustainability. The proposed
legislation will give regions tools to improve their public transport services so that they provide better value for
money for users, local and central government and taxpayers,"Ms King says.
"For example, it will enable regional councils to require operators to meet quality and performance standards for
commercial services which include integrated ticketing. It will also enable regional councils to maintain their existing
public transport services without change where this is deemed appropriate, or opt to bundle services together if this
best suited the needs of the region and its community."
Ms King says one of the key aims of the proposed legislation is to ensure fair competition and an open market for all
public transport service providers. "Under the proposed legislation there will continue to be scope for commercial
services to play an integral role in providing public transport."
The Land Transport Management (Transport Services Licensing Act) Bill 2007 is currently being drafted and will be
introduced into Parliament within six months. When it reaches the Select Committee stage there will be an opportunity
for the public and stakeholders to make further submissions.
Questions and Answers
Which legislation will be affected? Both the Transport Services Licensing Act 1989 and the Land Transport Management Act
2003 will be affected. There may also be some consequential amendments to other legislation such as the Local Government
Act 2002 and the Land Transport Act 1998.
Why have these changes to the legislation been proposed? It is an opportunity for the Government to help regions provide
improved public transport services throughout the country that align with national transport objectives in the New
Zealand Transport Strategy (NZTS) - a system that is affordable, integrated, safe, responsive and sustainable.
Under current legislation, regional councils have very limited control over commercial services - those which are not
contracted or funded by the council. This legislation would empower regional councils to impose controls and make it
compulsory for commercial services to comply with them. The controls would be set out in the Regional Passenger
Transport Plan (RPTP), which would be the result of consultation with the community itself. The ability to impose
controls would give local government more power to ensure that commercial services are meeting the standards expected by
the region. For example, there would be the ability to require integrated ticketing or to set standards for ease of
access for passengers into vehicles. At present, operators of commercial services are not required to provide any
ongoing information about their services, such as the demand in particular areas or for certain routes, or on the cost
of services. This type of information is crucial for region s to establish systems that are integrated and responsive to
community needs. Controls set out within RPTPs could require operators to provide this information as a way for regions
to better manage their public transport system.
What are the benefits for New Zealanders? This legislation will enable local people to develop local solutions for local
problems. It will give each region tools to ensure that all public transport services in that area comply with the local
Regional Passenger Transport Plan (RPTP). This will make it easier for regional councils to implement affordable,
integrated, safe, responsive and sustainable transport systems for their regions. Benefits will include better value for
money and more consistent public transport services.
Are RPTPs required under the current legislation? Regional councils currently prepare Regional Passenger Transport
Plans, but have extremely limited powers of control over commercial services. The proposed legislation will enable
councils to specify controls that they need.
What is the difference between a contracted and a commercial service? Commercial services are identified and provided by
operators without any financial assistance from regional councils. Commercial services operate indefinitely, unless an
operator withdraws them. Contracted services are identified by a regional council.They then go through a public tender
process before an operator is contracted for a specified period --- commonly three to five years.
How will a more consistent public transport system be created? Under current legislation public transport operators can
register and de-register services, which may be a single trip at any time on any day, not necessarily a complete
timetable for a route, with a maximum notice period of 21 days. Regional councils are then obliged to replace this
service, but it leaves them inadequate time to implement the best possible service for the community. It restricts their
ability to offer a reliable, consistent and sustainable service for the local people. The changes will mean a longer
notice period of 90 days and better control over other aspects of the public transport services, such as the ability to
set quality standards, in accordance with the RPTP of that region. It will also mean that regions can opt to bundle
services together if this best suited the needs of the region and its communities.
How would this legislation improve services for people with disabilities? It will enable regions to better cater for
those with disabilities by allowing regions to stipulate in their RPTP appropriate controls intended to address this
need. Currently, regional councils can only ensure those with disabilities are catered for on the contracted services
they fund. Operators of commercial services are not required to ensure appropriate facilities are available on the
services they run.
What are the potential environmental benefits under this new legislation? This change will empower regions to insist on
better environmental practices from commercial services through the RPTP. For example, regional councils can now specify
EURO4 buses on contracted services, but not for commercial services. At present, any bus that meets the minimum
standards set by Land Transport New Zealand can be used on a commercial service.
Why does this legislation not apply to long-distance coach and ferry services, rail, school bus services or taxi
operators? The changes have been designed to address concerns raised by local government regarding public transport
services. No concerns were raised around these other services. Rail is already a contracted service through regional
councils and further development of rail networks is a transport sector priority.
When are we likely to see changes from this Bill implemented in regions? This will depend on each region and decisions
councils make. It is likely regional councils will be required to review their RPTPs every three years.
How would these changes affect the commercial industry? Commercial operators will still be able to operate existing
commercial services, but will, over time, have to comply with any RPTP controls. There will still be scope for
innovation in terms of the services they provide. A key aim of the legislation is to provide fair competition and an
open market for all public transport service providers, and to enable councils to shape public transport services to
best suit the needs of their region and communities.
Will these changes mean cheaper fares? The changes will mean a fairer, more open market for contracting public transport
services. This may alter fares in some regions over time, but the aim is essentially to achieve better value for money,
rather than a flat reduction of fares.
Will these changes result in a safer public transport system? The safety of all public transport services is managed
through the transport services licensing regime and various transport rules, but it is anticipated the proposed changes
will positively affect safety through the standards and controls stipulated by councils and their communities in their
RPTPs.
ENDS