RCA Forum

1
RCA Forum

• 5 March 2004

2
Transfunds Allocation Process

• Consultation document on TAP to be released May
  with submissions due August
• Workshop on TAP around June/July
• Workshops to discuss instructions for 2005/06
  (targeted for release September)

3
Consultation comments on

• The allocation process used for the 2004/05 NLTP
  
• Methodologies to incorporate co-funding
  (including regional distributed funds) into the
  TAP

4
Regional Distribution

• 8 December 2003 Govt announced
• 5c/litre increase in fuel excise and equivalent
  increase in RUC
• distributed regionally by population
• Auckland receiving 35 percent
• Crown contribution to Auckland of up to 900m
  over 10 years
• Total additional funding of approximately 2,970M
  over 10 years

5
Regional Distribution

• 2005/06 regional distribution is approx (M)
• Northland 7 Manawatu 11
• Auckland 122 Wellington 22
• Waikato 19 Nelson 7
• Bay of Plenty 14 West Coast 7
• Gisborne 2 Canterbury 26
• Hawkes Bay 7 Otago 9
• Taranaki 5 Southland 4
• Allocation based on 2011 Statistics New Zealand
  population projections

6
Regional Distribution

• Govt requires activities funded to be in
  accordance with LTMA 2003
• All activities must be included in
• A land transport programme
• The NLTP
• Meet requirements of Section 20 of Act
  (allocation of funds) before funding is approved

7
Regional Distribution

• Decision to distribute funds regionally
• requires Transfund to
• Review TAP policy and its implementation in
  developing the 2005/06 NLTP
• Revisit FAR policy to ensure additional transport
  investment in the regions over the 10 year period

8
FAR policy work

• In December 2003 Board agreed to
• Retain 50/50 partnership
• Retain FAR formula
• Retain 43 minimum FAR
• Increase construction margin to 10

9
FAR policy work

• Further policy work on
• Local road renewal activities
• Special Purpose Roads
• Achieving strategic outcomes (network
  optimisation)

10
Co-Funding Policy

• Definition
• Funding for projects that is additional to NLTP
  funding
• Additional funding from
• Private sector contribution
• Toll revenue (and borrowing for toll projects)
• Additional TLA contribution
• Regional fuel tax (including light RUC)
• Auckland Crown hypothecation

11
Proposed Objectives

• Additionality fund more projects in total
• Incentivise new projects to be submitted
• Maintain transparency and trust
• Treat all sources of funds consistently
• KISS principle
• Ensure financial stability and prudence
• Not skew funds towards one sector
• Develop transparent FAR policy

12
Proposed Principles

• Consistency with Act
• All projects must be in 10 yr programme
• Co-funding will not reduce funds for other
  projects
• Developer contributions must reduce
  Transfunds funding requirement
• All projects must meet minimum economic
  criteria