13 November 2019
Hugh Davenport
[FYI request #11282 email]
REF: OIA-5863
Dear Hugh
Request made under the Official Information Act 1982
Thank you for your email
of 24 September 2019 requesting the following information under the Official
Information Act 1982 (the Act):
a) ‘The exact yearly figure that NZTA is contributing for the Waikato bus drivers
b) How many years that NZTA will be contributing
c) How are any increases or decreases to that amount decided
d) How is the money distributed (ie, does NZTA pay Go Bus Limited directly, or is there an
escrow)
e) All correspondence with Go Bus Limited in regards to the bus driver pay dispute.
f) All correspondence with Waitkato Regional Council in regards to the bus driver pay dispute
g) For all other private bus companies in New Zealand that NZTA contributes funds to, the
amount of money that NZTA is contributing for the purpose of increasing driver pay rates
h) For all other public transport organisations (for example, Auckland Transport, Metlink/Greater
Wellington Regional Council) that NZTA contributes funds to, the amount of money that NZTA
is contributing for the purpose of increasing driver pay rates
i)
For all bus driver union organisations in New Zealand that NZTA contributes funds to, the
amount of money that NZTA is contributing for the purpose of increasing driver pay rates
j)
For all private bus companies, public transport organisations, or bus driver union organisations
in New Zealand, all correspondence between NZTA and that organisation in regards to driver
pay disputes.
k) Information on any upcoming pay dispute settlements involving NZTA around New Zealand
l)
Further, I would like to request information on any upcoming pay dispute settlements involving
NZTA around New Zealand.
m) Finally, if there are no other organisations that NZTA are providing funds to, or in the planning
process of providing funds to, then I would like to request a bit of information on how NZTA is
providing the entire country with value with this agreement with First Union and/or Waikato
Regional Council and/or Go Bus Limited.’
Your questions have been set out and addressed below.
Requests (a) to (d) and (g) and (i)
a)
The exact yearly figure that NZTA is contributing for the Waikato bus drivers
b)
How many years that NZTA will be contributing
c)
How are any increases or decreases to that amount decided
d)
How is the money distributed (ie, does NZTA pay Go Bus Limited directly, or is there an
escrow)
g)
For all other private bus companies in New Zealand that NZTA contributes funds to, the
amount of money that NZTA is contributing for the purpose of increasing driver pay rates
h)
For all other public transport organisations (for example, Auckland Transport, Metlink/Greater
Wellington Regional Council) that NZTA contributes funds to, the amount of money that NZTA
is contributing for the purpose of increasing driver pay rates
i)
For all bus driver union organisations in New Zealand that NZTA contributes funds to, the
amount of money that NZTA is contributing for the purpose of increasing driver pay rates
For the reasons set out below, the NZ Transport Agency does not directly fund (or contribute to) the
individual costs of providing public transport (like driver wages or fuel costs), rather it funds public
transport programmes that are prepared by regional councils. The setting of driver wages, including
determining wage increases/decreases is the responsibility of bus companies contracted by regional
councils to provide public transport services.
As the Transport Agency does not directly contribute to the pay of bus drivers, the Transport Agency
does not hold the information requested in questions (a) to (d) and (g) to (i). I am therefore refusing
this part of your request under section 18(g) of the Act: because the information requested is not held
by the department or Minister of the Crown or organisation and the person dealing with the request
has no grounds for believing that the information is either—
(i)
held by another department or Minister of the Crown or organisation, or by a local
authority; or
(ii)
connected more closely with the functions of another department or Minister of the
Crown or organisation or of a local authority.
For your information, the Transport Agency received a formal request from the Waikato Regional
Council (WRC) for an increase in funding. In response to this, the Transport Agency approved (in
September 2019) an increased contribution from the National Land Transport Fund (NLTF) ($745,505)
towards the WRC’s 2018-21 Public Transport Programme. The funding is for the 2019/20 ($369,750)
and 2020/21 ($375,755) financial years.
The WRC requested the additional funding to enable it to address a decline in the reliability of public
transport services in the region (for example trips being cancelled at the last moment), which was
discouraging people from using public transport. The WRC advised that the major cause of declining
reliability was due to challenges around recruiting and retaining enough drivers to deliver the
timetabled public transport services.
The Transport Agency’s expectation is that with the additional funding WRC will address service
reliability issues – in this instance having enough drivers to deliver services - to make public transport
an attractive travel option. The WRC has determined the best way to do this is to enter into, and fund,
changes to its existing contractual arrangements with Go Bus, the main supplier of public transport
services in Waikato.
The WRC has advised that since funding was approved (by the Transport Agency) service reliability
has improved.
The following section explains at a high level the Transport Agency’s role in relation to public
transport, and how it allocates NLTFs towards councils’ costs of providing public transport.
Overview of roles in relation to the provision of public transport
The Transport Agency’s role under the Land Transport Management Act 2003 is to enable the
provision of public transport services through its investment role. The role of regional councils,
including Auckland Transport, is to design, procure and deliver public transport services.
The role of bus companies is to deliver public transport services under the contract it has with the
relevant regional council/s. One of the contractual responsibilities of bus companies is to secure the
necessary drivers required to deliver the services agreed with councils. This includes setting and
agreeing with drivers the terms and conditions of employment.
How the Transport Agency invests in regional councils’ public transport programmes
The Transport Agency invests in regional public transport services through investing in public transport
programmes developed and co-funded with regional councils and fare revenue. Operational costs of
providing public transport services are bulk funded by mode (bus, rail and ferry).
Investment in regional councils’ public transport programmes is reviewed on a triennial basis as part of
the wider land transport investment programme. This process commences when the Government
releases the Government Policy Statement on Land Transport - which sets out the Government’s
strategic direction and priorities for land transport investment, it also sets the high-level funding
allocations for different land transport activities like road construction, road maintenance, and
provision of public transport services.
Through Regional Land Transport Plans, regional councils submit updated public transport
programme budgets for the subsequent three-year period. The Transport Agency uses its Investment
Assessment Framework to assess programmes. The Transport Agency considers several matters
when assessing programmes - from contribution towards the Government’s strategic priorities through
to impact of inflation on programme costs. Our Investment Assessment Framework for the 2018-21
National
Land
Transport
Programme
is
available
online
here:
https://www.nzta.govt.nz/assets/planning-and-investment/nltp/IAF-for-GPS-2018.pdf
All regional councils are required to maintain land transport disbursement accounts into which NLTF
monies are paid. The Transport Agency does not disburse any funds to suppliers contracted by
regional councils to provide public transport services.
The Transport Agency also requires that public transport service contracts be subject to indexation.
For bus services the Transport Agency has produced a bus indexation tool which is to be applied to
bus contracts on a quarterly basis. The bus index shares the risk of inflation with bus operators.
Details on the bus index can be found on the Transport Agency’s website here:
https://www.nzta.govt.nz/resources/bus-ferry-cost-indexation/
More details on the Transport Agency’s role in the provision of public transport is available on the
Transport Agency’s website here:
https://www.nzta.govt.nz/walking-cycling-and-public-transport/public-transport/planning-and-investing-
in-public-transport/
Request (e) - All correspondence with Go Bus Limited in regards to the bus driver pay dispute
The Transport Agency has had no correspondence with Go Bus Limited regarding the bus driver pay
dispute in Waikato.
This part of your request is therefore being refused under section 18(g) of the Act because the
information requested is not held by the department or Minister of the Crown or organisation and the
person dealing with the request has no grounds for believing that the information is either—
(iii)
held by another department or Minister of the Crown or organisation, or by a local
authority; or
(ii)
connected more closely with the functions of another department or Minister of the
Crown or organisation or of a local authority.
Request (f) - All correspondence with Waikato Regional Council in regards to the bus driver
pay dispute
The document schedule appended to this letter contains a list of the documents that fall within the
scope of your request. Please send your email address to [email address] so
that we can share these documents with you via OneDrive.
Certain information has been withheld, where it is necessary to do so under the following sections of
the Act:
• section 9(2)(a) – to protect the privacy of natural persons, including that of deceased natural
persons;
• section (9)(2)(b)(ii) – to protect information where the making available of the information
would be likely unreasonably to prejudice the commercial position of the person who supplied
or who is the subject of the information;
• section 9(2)(ba)(i) – protect information which is subject to an obligation of confidence or
which any person has been or could be compelled to provide under the authority of any
enactment, where the making available of the information would be likely to prejudice the
supply of similar information, or information from the same source, and it is in the public
interest that such information should continue to be supplied;
• section 9(2)(g)(i) maintain the effective conduct of public affairs through the free and frank
expression of opinions by or between or to Ministers of the Crown or members of an
organisation or officers and employees of any department or organisation in the course of their
duty.
I do not consider that it is in the public interest to make the information that has been withheld
available.
Request (j) - For all private bus companies, public transport organisations, or bus driver union
organisations in New Zealand, all correspondence between NZTA and that organisation in
regards to driver pay disputes
Other than the WRC, the Transport Agency has not corresponded with private bus companies, public
transport organisations, or bus driver union organisations regarding any other driver pay disputes.
The Transport Agency does not hold the information requested under (e), and therefore I am refusing
this part of your request under section 18(f) of the Act: on the grounds that the information requested
is not held by the Transport Agency.
Request (k) Information on any upcoming pay dispute settlements involving NZTA around New
Zealand
The Transport Agency is not involved in any upcoming pay dispute settlements around New Zealand.
Request (l) Further, I would like to request information on any upcoming pay dispute
settlements involving NZTA around New Zealand
The Transport Agency is not involved in any upcoming pay dispute settlements around New Zealand.
Request (m) Finally, if there are no other organisations that NZTA are providing funds to, or in
the planning process of providing funds to, then I would like to request a bit of information on
how NZTA is providing the entire country with value with this agreement with First Union
and/or Waikato Regional Council and/or Go Bus Limited.
In 2018/19 approximately $875 million was spent on the provision of public transport services (bus, rail
and ferry services) across New Zealand. Of this approximately $579 million was spent on bus
services. The following table provides a break-down of bus operational costs and how these are
funded for the last two financial years.
2017/18 ($000)
2018/19 ($000)
National
Waikato
National
Waikato
Fares
208,817
5,826
202,716
5,941
Rates (local)
156,170
7,079
172,313
7,178
National
Land 162,759
7,367
179,723
7,471
Transport Fund
SuperGold
21,327
835
24,489
838
Contribution
Total Expenditure
549,073
21,107
579,241
21,428
Government subsidies public transport for a range of reasons including:
• making the best use of existing transport networks before investing in new infrastructure
• contributing to liveable cities that support access to social and economic opportunities for all
New Zealanders, some of whom do not have ready access to a private vehicle
• improving safety outcomes
• reducing emissions and the impact of transport on the environment.
In order for public transport to successfully deliver these benefits to the public, people need to be
using public transport in the first place, therefore public transport needs to be an attractive travel
option. Declining public transport service reliability is discouraging people from using public transport
in Waikato – which undermines the benefits sought through the Government’s investment in public
transport and reduces overall value for money.
Another concern is that declining patronage would result in a decline in fare revenue, which is a major
funding source for the provision of public transport.
Thank you for taking the time to share your concerns with us on this matter. We hope this letter has
provided you with some useful information regarding the relationship between the Transport Agency,
regional councils, and the provision of public transport.
Under section 28 of the Act, you have the right to ask the Ombudsman to review my decision to refuse
and withhold aspects of your request. The contact details for the Ombudsman can be located at
www.ombudsman.parliament.nz
If you would like to discuss this reply with the Transport Agency, please contact Ian Stuart, Principal
Advisor, by email to [email address] or by phone on (04) 890 4747.
Yours sincerely
Barbara Tebbs
Senior Manager Transport System Policy
Appendix 1: Document schedule
OIA-5863 document schedule
Ref.
Document name
1.
Attachment 1 – Friday 18 November 2018 9.32am
2.
Attachment 2 – attached to the above email of Friday 18 November 2018 9:32am
3.
Attachment 3 – Email of 27 November 2018, 11:20am.
4.
Attachment 4 – Email of Tuesday 27 November 2018, 4.44pm
5.
Attachment 5 – email of 29 November 2018, 5:27pm
6.
Attachment 6 – attached to attachment 5 email of 29 November 2018, 5.27pm WITHHELD IN FULL UNDER
s9(2)(g)(i)
7.
Attachment 7 – slide doc attached to attachment 5 email of 29 November 2018
8.
Attachment 8 – email of 1 December 2018, 11.43am
9.
Attachment 9 – attached to the above email of 1 December 2018, 11:43 WITHHELD IN FULL UNDER
S9(2)(g)(i)
10.
Attachment 10 – Email of 3 December 8:21am
11.
Attachment 11 – Email of 3 December 2018, 8.30am
12.
Attachment 12 – attached to attachment 11, email of 3 December 2018am WITHHELD IN FULL UNDER
s9(2)(g)(i)
13.
Attachment 13 – Email of 10 December 2018, 10.47am WITHHELD IN FULL UNDER s9(2)(g)(i)
14.
Attachment 14 – Email of Wednesday 12 December 2018, 1:54pm
15.
Attachment 15 -attached to attachment 14 email of Wednesday 12 December 2018, 1:54pm WITHHELD IN
FULL UNDER s9(2)(g)(i)
16.
Attachment 16 – Email of Tuesday 29 January 2019, 9:32am.
17.
Attachment 17 – Email of Monday 3 December 2018, 8:54am
18.
Attachment 18 – Email of 6 September 2019, 11:12am.
19.
Attachment 19 – Email of 9 September 2019, 9:56am.
20.
Attachment 20 – attached to attachment 19 email of 9 September 2019, 9.56am.
21.
Attachment 21 – email of 19 September 2019, 11.32am.
22.
Attachment 22 – email of Friday 20 September 2019, 9.09am
23.
Attachment 23 – email of 30 November 2018, 8.22am
24.
Attachment 24 – Email of Friday 30 November 2018 9.18am
25.
Attachment 25 – Attached to email of 30 November 2018, 9.18am attachment WITHHELD IN FULL UNDER
s9(2)(g)(i)
26.
Attachment 26 – email of Tuesday 18 December 2018, 8.25am
27.
Attachment 27 – email of Wednesday 12 December 2018, 1:04pm
28.
Attachment 28 – attached to email of Wednesday 12 December 2018, 1:04pm WITHHELD IN FULL UNDER
s9(2)(g)(i)
29.
Attachment 29 – email of 12 December 2018, 2:11pm
30.
Attachment 30 – attached to email of 12 December 2018, 2:11pm. WITHHELD IN FULL UNDER s9(2)(g)(i)
