8
BRIEFING
Update on Green Transport Card Engagement Process
Reason for this
We are prepared to begin engagement with local government on the Green
briefing
Transport Card. This briefing highlights the proposed key messages and
process for our engagement.
Action required
Note our proposed approach.
Deadline
None.
Reason for
deadline
Contact for telephone discussion (if required)
Name
Position
Telephone
First
contact
Richard Cross
Manager, Strategic Policy and Innovation

Senior Adviser, Strategic Policy and Innovation
9(2)(a)
MINISTER’S COMMENTS:
Date:
5 February 2019
Briefing
OC190057
number:
Attention:
Hon Julie Anne Genter,
Security level:
In confidence
Associate Minister of Transport
CC Hon Phil Twyford,
Minister of Transport
Associate Minister of Transport’s office actions
 Noted
 Seen
 Approved
 Needs change
 Referred to
 Withdrawn
 Not seen by Minister
 Overtaken by events

Purpose
1.
On 12 December 2018 we sought your agreement for us to engage with local government to
enable policy development for the Green Transport Card (GTC) (OC181166 refers).
2.
This briefing summarises our proposed engagement process, including key messages,
project governance, and next steps.
We will encourage buy-in for the GTC by leading a positive, solutions-oriented approach
3.
Local government support for this initiative will be crucial to implementing the GTC by mid-
2020. Our previous experience with negotiating free public transport entitlements for the
SuperGold card illustrates why this is important. In 2016, central government encountered
strong opposition from local government when it changed the funding model for the
SuperGold card. This was due to a lack of consultation, and regional councils’ belief that
they would be responsible for managing funding risks.
4.
We will communicate the following key messages about the GTC to local government, as
well as other central government stakeholders.
• This initiative stems from an agreement in the Confidence and Supply Agreement
between the Labour Party and Green Party to “investigate a Green Transport Card as
part of work to reduce the cost of public transport, prioritising people in low income
households and people on a benefit”.
• We want to co-develop policy and implementation options for the GTC with councils
and other government departments.
• This is an opportunity to improve the wealth and health of people on low/no incomes,
and to encourage greater use of public transport. It will benefit individual and
community well-being.
• It will complement other investments that central and local government are making to
improve public transport, such as expanding public transport services and
frequencies.
• No funding decisions have been made. We anticipate that central government would
need to fund the GTC directly until the next Government Policy Statement (GPS) on
Land Transport comes into effect on 1 July 2021. Central government will consider
funding the GTC from the National Land Transport Fund in the next GPS.
• We are intending to begin by targeting the GTC at Community Service Card (CSC)
cardholders and their dependent children. In the future, the Government intends to
expand eligibility to tertiary students.
• We are aiming to implement the GTC as soon as possible, making it available to
CSC cardholders and their children by mid-2020.
• We need to complete the policy work for the GTC by mid-2019. This is necessary for
the GTC to be implemented in 2020, if funding is available. It will also enable the
GTC to be integrated into the next GPS, which is being drafted this year.
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• Cabinet will make policy and funding decisions. We are aiming to provide Cabinet
with a paper on the GTC in June/July 2019.
• Our initial thinking is that GTC cardholders will be entitled to travel fare-free in off-
peak periods only. However, we are open to exploring other funding options (such as
discounted travel in both peak and off-peak periods) to ensure the GTC delivers the
best social and transport outcomes for the funds available.
5.
We will not disclose the amount of budget funding that we are seeking for the GTC during
engagement.
We intend to establish a Governance Group and a Working Group
6.
We need to begin establishing these groups before Cabinet decides on the budget initiative,
to enable us to develop the Cabinet Paper within the time available.
7.
The Governance Group will develop senior-level support for the GTC and provide overall
oversight of policy options for the GTC. It will highlight the GTC’s key policy opportunities
and challenges, and provide strategic advice to the Ministry of Transport on these issues.
8.
The Governance Group will include senior representatives from regional councils, Local
Government New Zealand, the Ministry of Transport, the NZ Transport Agency, and the
Ministry of Social Development.
9.
We intend to schedule the first Governance Group meeting for early March. This group will
then meet fortnightly, or as required.
10.
The Working Group, which sits under the Governance Group, will focus on the details of the
GTC and the best ways to implement it. This will include, for example, modelling the impacts
of the GTC on public transport networks, cost estimates, and how the GTC will integrate with
existing cards and ticketing systems.
11.
Attachment 1 identifies proposed members of the Governance Group and Working Group.
We are working to the following timeline
February 2019
Establish Governance Group and Working Group
March 2019
First Governance Group and Working Group meetings
March 2019
Cabinet decides on budget initiatives
May 2019
Draft Cabinet Paper and Regulatory Impact Assessment (RIA)
Early June 2019 Feedback and consultation on the Cabinet Paper and RIA
Late June/
Paper to Cabinet for consideration
late July 2019
July 2019
Establish governance and working arrangements to implement the GTC
July 2020
GTC implemented
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If Cabinet does not agree to the GTC budget initiative in March 2019, we can continue to
investigate the GTC
12.
We could continue working with the Governance Group and Working Group to develop
policy options and recommendations for the future.
13.
If the GTC is to be included in the next GPS, we still need to complete policy work for the
GTC before the next draft GPS is released in December 2019.
14.
We would work with you to review the timelines for this project, and how to best proceed.
To accelerate the engagement process, we have contracted a consultant with well-
established networks among local government leaders
15.
Rick van Barneveld, an independent consultant, will join the Governance Group and assist
our engagement with local government. One of Mr van Barneveld’s previous roles was Chief
Executive of Transit New Zealand.
16.
We selected Mr van Barneveld because he has a wealth of relevant experience, and is well
regarded by local government leaders in the transport sector. He also assisted central
government in negotiating the SuperGold Card transport concessions with regional councils.
There is a risk that councils could be unwilling or unable to implement the GTC within the
available timeframe
17.
We will manage this risk by seeking strong agreement at the first Governance Group
meeting on the social benefits of the card, and potential benefits for growing public transport.
18.
We will also make it clear that implementing the GTC will depend on central government fully
funding the GTC subsidies.
19.
We will advise you of any potential obstacles if they arise.
There is also a risk that stakeholders might discuss the GTC budget initiative with other
agencies and the media
20.
To manage this risk, we have developed a Terms of Reference for the Governance Group
and Working Group that addresses confidentiality issues (see Attachment 2).
21.
We will request Governance Group members to maintain confidentiality that Cabinet will be
considering a budget initiative for the GTC.
22.
We will also make it clear that Cabinet has not considered or agreed to fund the GTC at this
stage. Any funding decisions will depend on completing the policy work first.
Next steps
23.
Subject to your approval to begin engagement, as sought in our briefing on 12 December
2018 (OC181166 refers), we will begin contacting potential candidates to join the
Governance Group and Working Group.
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24.
We will regularly update you on key insights from the Governance Group and Working Group
meetings, including views expressed by local government and other departments, and our
progress in developing policy for the GTC.
Recommendations
25.
We recommend that you:
(a)
Note the proposed process and key messages for our engagement with
Yes/No
local government and other departments for the GTC’s policy development.
Richard Cross
Manager, Strategic Policy and Innovation
MINISTER’S SIGNATURE:
DATE
Page 5 of 9

Attachment 1
GTC Governance Group and Working Group Members (to be confirmed)
Proposed Governance Group
•
Ministry of Transport (Chair)
•
LGNZ
• Greg Campbell – Chief Executive of Greater Wellington Regional Council, and Chair of the
Regional Government Public Transport Sector Group
•
Auckland Transport
•
Environment Canterbury
•
NZTA
•
Ministry of Social Development
• TBC – A representative from a smaller regional council
• Supported by Rick van Barneveld, Independent Director
Proposed Working Group
• Rick van Barneveld, Programme Director (Lead)
•
Auckland Transport
•
Greater Wellington Regional Council
•
Environment Canterbury
•
Hawkes Bay Regional Council
•
Horizons Regional Council
•
NZTA
•
LGNZ
•
Ministry of Social Development
•
Ministry of Transport
•
Ministry of Transport
9(2)(a)
Page 6 of 9

Attachment 2
Green Transport Card (GTC) Policy Governance Group: Terms of Reference
Purpose
The Governance Group will enable central and local government agencies to investigate policy
options and implications of the Government’s GTC initiative. It will highlight key policy and operational
issues of the GTC, and provide strategic advice to the Ministry of Transport (MoT) on these issues.
Background to the GTC
The Confidence and Supply Agreement between the Labour Party and Green Party includes an
agreement to “investigate a GTC as part of work to reduce the cost of public transport, prioritising
people in low income households and people on a benefit”. MoT is investigating policy and
implementation options for the GTC.
The card will initially be targeted at Community Services Card cardholders and their dependent
children. There is an intention to expand it to full-time tertiary students in the future. If local
government supports this initiative, and funding from central government is available, the card could
be implemented in mid-2020.
The GTC will contribute to positive social outcomes, by making public transport more affordable,
and therefore more inclusive, for people on low or no incomes. It will also have additional economic,
environmental, health, and safety benefits, as public transport helps to manage congestion and is a
safer and more environmentally friendly transport mode than private motorised transport.
Objective
To establish a shared basis for agreement between the Crown and local government on the GTC, to
facilitate the GTC’s introduction.
Approach
The Crown recognises the importance of collaborating with local government on the GTC, and
establishing appropriate governance arrangements.
The Governance Group will focus on discussing the key policy issues of the GTC, including:
• understanding how the GTC could impact on existing public transport capacities
• estimating how much the GTC could cost to implement
• developing long-term funding arrangements
• establishing operational/implementation issues, including integration with existing cards and
payment systems, and how travellers will demonstrate their eligibility for the GTC benefits.
To work through these issues, the Governance Group will:
• enable central and local government agencies to openly share their views on the proposal
• establish principles for assessing policy options
• provide feedback on potential policy options.
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The Governance Group will be supported by a separate Working Group, which will include
representatives from each organisation in the Governance Group. The Working Group will focus on
the detailed modelling, operational, and implementation details of the GTC.
Membership
The Governance Group will include senior representatives from regional councils, Local
Government New Zealand, MoT, the NZ Transport Agency, and the Ministry of Social Development.
It will also include consultant Rick Van Barneveld, who has been contracted by MoT to lead the
engagement process with councils.
Meetings
Meetings are expected to occur monthly. The first meeting will be a two hour workshop in
Wellington. Follow up meetings will be one hour, with an option to meet by teleconference.
A minimum of three members (including the Chair) are required for a meeting.
Responsibilities
The Chair will:
• facilitate Governance Group meetings
• provide general direction on key discussions.
Members of the Governance Group will:
• provide oversight for progressing the GTC policy work
• advise on policy and implementation options that MoT will recommend to Ministers
• reflect the views of other key partner agencies and stakeholders in discussions.
Key decisions will be settled via consensus.
Project leader
Senior Adviser at MoT, is the project leader for the GTC. He can be contacted at

9(2)(a)
Conflicts of interest
Each member will notify the project leader of any real or potential conflicts of interest as soon as
they are aware of them. The Chair will determine the appropriate action to be taken in respect of
any conflicts of interest in accordance with generally accepted best practice.
Confidentiality
Details of this project need to remain confidential until policy decisions are made and announced by
Government. Policy details are not to not be shared beyond the Governance Group without explicit,
written agreement from MoT.
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Plan and meetings schedule
An indicative timeframe for the Green Transport Card policy work is detailed below.
Indicative timeframe
Date
Initial conversations between MoT and local and central government
February 2019
agencies to establish the Governance Group and Working Group
First Governance Group meeting (2 hours in Wellington)
March 2019
Fortnightly Working Group meetings
March-June 2019
Monthly Governance Group meetings (1 hour teleconference)
April-June 2019
Draft GTC Cabinet paper completed by MoT
End May 2019
Cabinet Paper to Cabinet for consideration
June/July 2019
Establish governance and working arrangements to implement the GTC
July 2019 onwards
(subject to Cabinet approval and funding)
Implement GTC (subject to Cabinet approval and funding)
July 2020
Changes to this Terms of Reference
The Governance Group will review this document as needed and make adjustments as required.
Page 9 of 9

Document Outline