38618 (2024). Tangi Utikere to the Minister of Transport

38618 (2024). Tangi Utikere to the Minister of Transport: What was the rationale or criteria for the decision to significantly increase the National Land Transport Fund funding for public transport in regions like Hawke’s Bay (116%) and Gisborne (89%) compared to others with smaller increases, such as Nelson (7%)

Hon Simeon Brown: The indicative funding allocations for public transport programmes (for example Hawke’s Bay and Gisborne) incorporate cost increases that have occurred for the operation of existing services. Baseline costs have significantly increased due to: - Increased cost from compliance with legislative changes during the 2021-24 NLTP (e.g. driver wage increases, sick-leave provision); - Increased demand and consequential cost of Total Mobility services; and - cost escalation; and re-tendering of public transport units that are planned to occur during the 2024-27 NLTP. I am advised that NZTA is committed to supporting efficient and reliable public transport in the Nelson Region, which is undertaken by Nelson City Council and Tasman District Council who jointly operate the eBus network. The figures released in the indicative National Land Transport Fund (NLTF) allocations for public transport and operations in Nelson are for the 2024/25 period only at this time. Funding for 2025/26 and 2026/27 is retained by NZTA as a separate contingency. The three-year investment level will be re-evaluated following the outcome of a 12-month evaluation plan of the councils’ revised public transport network which was a condition of funding approval for 2023/24. The public transport network was substantially refreshed in 2023/24 and the service review will inform the level of funding for the 2024-27 NLTP, with a decision on funding expected by the end of 2024. NZTA has already written to local councils on this matter and will continue to engage with them in the lead up to funding decisions being finalised later this year.