BUDGET-SENSITIVE
Budget 2023 Submission for Invited New
Spending Priorities and CERF Initiatives
Section 1: Overview
Section 1A: Basic initiative information
Initiative title
Extending Community Connect to under 25 year olds and Total Mobility passengers
(max 120
characters)
Lead Minister
Minister of Transport, Hon Michael Wood
Agency
Te Manatū Waka Ministry of Transport.
This initiative wil expand the Community Connect public transport concession to under 25-year-olds and all Total
Mobility passengers (Total Mobility is a bespoke transport service available to those unable to use public transport
Initiative
due to an impairment). Community Connect is a 50 percent concession on the adult fare for peak and off-peak
description (max services and wil be available to Community Services Card (CSC) holders from 1 April 2023. Expanding
800 characters)
Community Connect to these user groups is intended to encourage increased public transport use, supporting
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mode-shift and meeting the vehicle kilometres travelled (VKT) reduction target. This extension is targeted to be
implemented in the second half of 2023.
New Spending – Invited
Priority area
☐ New Spending – Invited capital initiatives (outside ☐
Climate Emergency
☒
operating initiatives
the Investment Panel process)
Response Fund (CERF)
Is this a cross-
No
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Click or tap here to enter text.
Vote initiative?
Name: Helen White
Name: Olivia Maxwell
Department
Treasury contact
Phone: s 9(2)(a)
Phone:
contact
(Vote Analyst)
s 9(2)(a)
Email: [email address]
Email: [email address]
Section 1B: Summary of funding profile
Operating funding sought through Budget 2023 ($m) – Total Mobility Users
2022/23
2023/24
2024/25
2025/26
2026/27 & outyears*
Total
[●]
98.048
91.664
94.065
93.636
377.413
*Extend the profile above to a “steady state” if funding into outyears is irregular. Delete “& outyears” for time-limited funding.
Capital funding sought through Budget 2023 ($m)
22/23
23/24
24/25
25/26
26/27
27/28
28/29
29/30
30/31
31/32*
Total
INFORMATION
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
*Extend the profile above if funding is needed beyond 2031/32.
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OFFICIAL
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Section 2: Alignment
Section 2A: Problem definition
The answer to each question must not exceed 2-3 paragraphs
Describe the problem the initiative is trying to solve by outlining its root cause(s) and consequence(s)
and explain why the problem needs to be solved now. The problem should be framed in terms of
current and/or future outcome(s) for New Zealanders.
The Emissions Reduction Plan (ERP) includes a transport target to reduce vehicle kilometres travel ed
(VKT) by cars and light vehicles by 20 percent by 2035. Achieving this target is critical for reducing
transport emissions by 41 percent by 2035, as suggested by the Climate Change Commission. The
ERP makes significant commitments to make it easier, safer, and more affordable to travel by public
transport, rather than by car. It also makes commitments to improve access and travel choice for the
disadvantaged. This work has started with the development of Community Connect for Community
Services Card (CSC) holders, expected to start 1 February 2023.
Expanding the original concession scheme to include under 25-year-olds and Total Mobility users is an
opportunity to improve transport equity and support a just transition by making it more affordable for
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more people to access key social and economic opportunities (such as jobs, education, and
healthcare).
Transport Indicator data demonstrates that lower income households spend a much greater proportion
of their income on transport costs than higher income households, and access to health, jobs and
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other opportunities is much more limited. Lower income households are also much more sensitive to
price changes, meaning policies that could increase the cost of motor vehicle travel (such as
congestion charging and the ETS) could have a disproportionate impact on these communities. This
could exacerbate transport disadvantage and poverty.
Transport affordability is a key issue for the disability community and can hinder their ability to engage
in society. Recent research into transport experiences of disabled people in Aotearoa New Zealand
What is the problem that
has identified cost as a key barrier for total mobility, as well as availability of services. Te Manatū Waka
this initiative is trying to
is currently scoping a review of Total Mobility to investigate these issues further, but in the interim
solve and why does it
proposes to extend Community Connect to Total Mobility passengers to help address the immediate
need to be solved now?
issue of affordability.
Describe the existing arrangements for the asset or service, including (where applicable):
-
How services are currently organised and provided;
-
The associated throughput, turnover, and existing cost; and
-
Current asset or service availability, utilisation, and condition.
Departments should be able to demonstrate why the existing arrangements (if there are any) are
INFORMATION
insufficient to address the problem outlined above.
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Public transport services, including fare settings, are the responsibility of public transport authorities
(PTAs). PTAs are regional councils, Auckland Transport, unitary authorities (other than Auckland
Council) and territorial authorities that have the public transport function. There are currently a range of
different concessions that may be available to under 25s; however, the level of discount and eligibility
criteria vary significantly across the country.
Currently, public transport services across Aotearoa New Zealand have half price fares for all
passengers until 31 January 2023. From 1 February 2023, Community Connect wil provide a 50%
discount on public transport for low-income New Zealanders (specifically, CSC holders). However, this
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scheme does not include Total Mobility users. Some under 25-year-olds wil overlap with Community
Connect as many students are CSC holders, but not al .
What key partners/stakeholders/customers (including iwi and Māori) have been engaged to understand
the problem and develop the initiative? How have you worked with them and how has their input
affected the understanding of the problem? You may wish to reference here the key principles of He
Ara Waiora
Public Transport Authorities (PTAs) are responsible for public transport services in their regions, that
includes rolling out the community connect concession on their services. We expect PTAs wil engage
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with their local stakeholders, customer including, iwi and Māori as a part of their work to provide public
transport services
As part of an evaluation of concession, Transport officials have been and wil continue to work with
community organisations, as well as government departments Te Puni Kōkiri and Kāinga Ora to make
sure we obtain insights on use of the concession among Māori.
Has the initiative been developed in collaboration with any other relevant agencies? If so, explain.
In developing the original community connect concession scheme we worked with the Ministry of
Social Development and Ministry of Health. We have been working with Waka Kotahi and PTAs to
implement the original scheme. For the extension of the scheme to under 25 year olds and total
mobility users we wil work with Waka Kotahi, and we wil need to work with PTAs
Describe the department’s needs in terms of the improvements and/or changes that are required to
address the problem. Outline specifically what wil be changed or improved relative to existing
arrangements. While providing Community Connect for CSC holders wil help address public transport affordability for
many low income New Zealanders, there are others that may not be eligible for a CSC yet are facing
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What needs to improve
the same chal enges with transport costs. Currently, the Community Connect concession wil not
and/or change to address
include Total Mobility passengers and under 25-year-olds. This extension wil help reduce transport
the problem?
costs for these population groups and provide them with the opportunity to access education, social
and cultural connections, supporting the overall wellbeing of total mobility users and under-25-year-
olds.
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This initiative wil help to address cost barriers to accessing public transport and Total Mobility, for
population groups who tend to be more sensitive to price. This initiative wil complement further
investment in improving and expanding public transport services that low-income New Zealanders can
access.
Section 2B: Alignment
The answer to each question must not exceed 1-2 paragraphs. If the initiative has more than one intended outcome, select one of the
rows below and click the button that appears at the bottom right to duplicate this section.
Describe how the initiative aligns with the Wel being Objectives, and where relevant, delivery of the
Government’s economic plan to build a high-wage, low-emissions, secure economy.
For CERF initiatives, succinctly outline the relevant CERF eligibility criterion.
The primary Government Wellbeing Objective for this initiative is
just transition.
This initiative makes a contribution to the Just Transition and Child Wel being Objectives. Reducing
INFORMATION
Alignment to the
public transport fares, particularly for low income New Zealanders, is included in the Emissions
Wellbeing Objectives and
Reduction Plan, and wil support efforts to increase mode-shift towards greater use of public transport.
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the economic plan
Extending Community Connect to under 25s wil make it cheaper for this group to travel and reduce the
burden of transport costs on household budgets.
The primary Economic Plan outcome is
low emissions.
This initiative is eligible for CERF funding as it aligns to an action in the ERP. It supports Action 10.1.2
of the ERP: Support people to use public transport. Community Connect supports efforts to address
equity, specifically, working with local government to make public transport more affordable with a
particular focus on low-income users.
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Briefly describe any specific implications, including any relevant Treaty Settlement commitments.
Guidance on applying the Treaty to policy work can be found here and here.
Specific implications
While there has not yet been engagement with iwi, it is expected that PTAs wil engage with their local
regarding the Crown’s
stakeholders and customers including, iwi and Māori as a part of their work to provide public transport
obligations under the
services in their regions, that includes rolling out community connect concession to CSC holders on
Treaty of Waitangi
their services.
Māori have the second highest rate of disability by ethnic group in New Zealand, at 26%, and have the
highest disability rates across every age group (Doran et al 2022,
Transport experiences of disabled
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people in Aotearoa New Zealand Waka Kotahi NZ Transport Agency research report 690). Efforts to
address affordability of Total Mobility services could have a particular benefit for tangata whaikaha Māori.
Section 3: Value
Section 3A: Benefits and outcomes
The answer to each question must not exceed 1-2 paragraphs. If the initiative has more than one intended outcome, select one of the
rows below and click the button that appears at the bottom right to duplicate this section.
The primary Living Standards Framework domain for this initiative is
income, consumption and wealth.
Goal 1: Improving transport equity
What is the initiative intended to achieve in terms of the identifiable and measurable social, economic and/or
environmental benefits? What is the specific impact or difference that this initiative wil achieve? Provide a brief
description of the key benefits that wil arise through this initiative, with reference to th
e wellbeing domain(s)
from the Living Standards Framework that each benefit relates to. You may also wish to reference the key
principles of He Ara Waiora. The Wel being Impacts Template can be attached to support your answer.
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For CERF initiatives, refer to section 3.5 of the Budget 2023 Guidance.
This initiative wil reduce the cost of public transport for total mobility passengers and under 25-year-olds. This
cohort includes those with restricted transportation options and students, all of whom are more likely to be
What outcome(s)
spending a greater proportion of their income on transport and are more sensitive to any changes in transport
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would the initiative
costs. Additionally, providing the concession to children wil al eviate the burden of transport costs on families’
achieve?
budgets.
Disabled people are over-represented in low-income brackets in New Zealand and under-represented in high-
income brackets. Many wil have a CSC, so are eligible for Community Connect, but because the planned
concession only applies to public transport, as it does not currently apply to Total Mobility. While Total Mobility
passengers currently receive a subsidy on Total Mobility fares, the cost can stil be significant, and can pose a
barrier for many passengers. Including Total Mobility in Community Connect wil reduce the cost of the service
for passengers.
Explain how the initiative’s intended outcomes wil be measured after the initiative is implemented. As with the original Community Connect concession, officials wil look to establish some baseline information
to help assess uptake of the concession.
If the initiative has any of the fol owing distributional and/or system impacts, tick the relevant impact(s) and
answer additional questions in Section 5 of this template, where applicable:
Distributional/system
INFORMATION
impacts
☒
☐
☒
☐
☒
☐
Māori
Pacific
Child Poverty
Women and
Environment
Regulatory
Peoples
Girls
Systems
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Indicate if the key benefits wil be realised in the short term (<5 years), medium term (5-10 years), long term
(>10 years) or inter-generationally. Indicate whether, and why, benefits vary across different timeframes. This
can also be done through the Wel being Impacts Template (hyperlinked above).
The goal wil likely be realised in the medium to long term. The exact timeframe is dependent on the extent to
which PTAs wil adopt the scheme, and how quickly it is implemented across the country. However, based on
PTAs’ support with the planned concession for CSC holders, we anticipate PTAs wil adopt the scheme. It is
Timeframes
also dependent on how many total mobility passengers and under-25-year-olds wil take up the concession
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and see benefit from it.
It wil take time to change travel behaviours and overcome negative perceptions and experiences of public
transport. However, if there is greater and more frequent use of public transport with the concession, and
reduced travel by private motor vehicle, we would expect to see a reduction in transport costs for this cohort,
which over time could improve transport equity.
Provide evidence (data/other information) and assumptions to support the existence and timeframes of the
Evidence and
identified benefits, including any gaps or uncertainties. It is optional to attach the Investment Logic Map. This
assumptions
can also be done through the Wel being Impacts Template (hyperlinked above).
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We are assuming that:
•
those eligible for the concession and live near or on frequent and convenient public transport
routes are the most likely to take advantage of the concession
•
there wil be sufficient capacity with existing public transport services, including sufficient
workforce, to cope with the potential increase in demand
•
there wil be sufficient Total Mobility services available
•
PTAs’ share of funding for Total Mobility services is stil made available.
Goal 2: reduced transport emissions (with extending to under 25s only)
Extending the concession to under 25s may encourage more of this cohort to use public transport and
reduce their reliance on private transport options.
What outcome(s)
would the initiative
Note- extending the concession to Total Mobility does not support emissions reductions, although this may
achieve?
change over time should more zero emission vehicles become available that meet the requirements for Total
Mobility.
The intended outcome wil be measured through measuring number of total mobility users and under-25-year
olds being able to use the public transport and how that number has changed from the past few years.
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If the initiative has any of the fol owing distributional and/or system impacts, tick the relevant impact(s) and
answer additional questions in Section 5 of this template, where applicable:
Distributional/system ☒
☒
☐
☒
☐
☐
impacts
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Māori
Pacific
Child Poverty
Women and
Environment
Regulatory
Peoples
Girls
Systems
The goal could be achieved in the medium term, or sooner, depending on the level of uptake, and whether
that uptake is sustained over time. As service level improvements are made or PT is expanded there are
Timeframes
likely to be additional benefits.
We are assuming that those eligible for the concession and live near or on frequent and convenient public
transport routes wil use the concession, instead of a private motor vehicle.
Evidence and
assumptions
A key assumption is that reducing the cost of public transport wil encourage greater use of public transport
over private motor vehicles. There are other factors that influence people’s travel choices, including
convenience and availability of services.
Goal 3: Improving physical and mental health outcomes
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This initiative could reduce transport costs for total mobility users and under 25-year-olds and in doing so,
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improve their access to jobs, health and social services, and other opportunities. This could in turn improve
What outcome(s)
social connections for total mobility users and under 25-year-olds, which would provide mental health
would the initiative
benefits. Improved access to health services would also provide physical health benefits.
achieve?
Public transport supports increased physical activity, due to the necessary travel to and from services,
usual y by walking or cycling. Increased use of public transport would therefore support improved physical
health.
Transport is recognised as a key barrier to accessing health services. In 2019/20, 6.6 percent of Māori adults
and 3 percent of Māori children were unable to access GP services due to a lack of transport; this was the
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case for 6.6 percent of Pacific adults and 5.8 percent of Pacific children. By comparison, 2 percent of Pākehā
adults and 0.8 percent of Pākehā children experienced this.
If the initiative has any of the fol owing distributional and/or system impacts, tick the relevant impact(s) and
answer additional questions in Section 5 of this template, where applicable:
Distributional/system ☒
☒
☐
☒
☐
☐
impacts
Māori
Pacific
Child Poverty
Women and
Environment
Regulatory
Peoples
Girls
Systems
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The goal wil likely be realised in the medium to long term. The exact timeframe is dependent on the extent to
Timeframes
which total mobility users and under 25-year-olds take up the concession and see benefit from it. It wil take
time to change travel behaviours and overcome negative perceptions and experiences of public transport.
Research from Britain and the United States has found a link between public transport usage and
improvements in physical activity and mental health, as well as improved access to healthy food, housing
and healthcare.
References:
Ferrer, HB, Cooper, A and Audrey, S (2018), Associations of mode of travel to work with physical activity,
and individual, interpersonal, organisational, and environmental characteristics.
Journal of Transport &
Health, 9, 45-55.
Litman, T. (2018),
Evaluating Public Transport Health Benefits. Victoria Transport Policy Institute.
Evidence and
http://www.vtpi.org/tran_health.pdf
assumptions
According to the Ministry of
Transport’s Transport Outlook: Current State (2016), public transport is the
safest form of travel in New Zealand. Furthermore, international evidence shows declining per capital traffic
fatalities with increased public transport usage.
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However, there are some important assumptions:
We are assuming that those eligible for the concession live near public transport routes that are convenient
for accessing health and other services, to support use of public transport instead of a private motor vehicle.
We are also assuming there wil be sufficient capacity with existing public transport services, including
sufficient workforce, to cope with the potential increase in demand.
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Section 3B: Expenditure profile and cost breakdown
The answer to each question must not exceed 1-2 paragraphs.
What assumptions, if any, have been used to prepare the costings for this initiative? E.g. for new FTE,
salary assumptions, role/seniority, associated overheads. See section 3.3 of the Budget 2023 Guidance on
common assumptions.
We have assumed the under 25 concession wil apply to adult public transport fares, rather than to child or
student fares. Those eligible for, and choosing to access, the concession wil pay half the adult fare. This
is consistent with how the concession wil work for CSC holders. Reasons the concession for under 25s is
comparatively high compared to the cost of half-price public transport is that Under 25s are high users of
public transport and make up a disproportionate number of public transport journeys as well as there are
additional the administrative costs of targeted concessions to provide verification systems to confirm
eligibility.
The fare revenue forgone estimates have
not been adjusted for CSC cardholders who are under 25 or
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are Total Mobility passengers. This means that the true costs of providing the concession could be lesser
than what has been outlined in this template. Data outlining the proportion of under 25 year olds who hold
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a CSC or use Total Mobility was not available when this initiative was costed.
Formula and
assumptions underlying costings
Fare revenue foregone has been estimated with the fol owing key assumptions:
•
As above, the estimated patronage numbers covered all under-25 trips, there is no adjustment
for existing CSC holders who are under 25 or are Total Mobility passengers
•
As with the concession for CSC holders, the concession for under-25s only applies to the adult
fare. It does not apply to child or student concessions.
•
For the purpose of estimating costs we have estimated forgone fare revenue based on the mid-
point between child fares and adult fares. This is likely a conservative estimate. However, given
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PTAs are responsible for fare setting it is difficult to accurately estimate foregone fare revenue
when fare policies could change over time.
•
We generally assumed passengers use electronic ticketing. Many regions differ fares by
payment type. Cash fares are typically more expensive compared to electronic ticketing.
•
Not all regions differ their fares like the above and not all use the same definition for adult and
child.
•
We assumed the impact of reduced fares might incentivise additional trips, and estimated this
increase at 16% for the first few years.
•
We used the Household Travel Survey to estimate the percentage share of trips taken by under-
25s at the regional level.
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Public transport authorities’ administration costs are based on the fol owing assumptions:
•
Similar set up costs to Community Connect for CSC holders, but increased to reflect costs
associated with validation requirements for under-25s.
•
All Total Mobility users are eligible, so no validation of CSC or any other criteria required.
•
Ongoing costs of maintaining the concession, including back office processes, marketing and
engagement.
Waka Kotahi administration costs are based on costs identified for the Budget 2022 initiative to implement
Community Connect for community Services Card holders, adjusted for inflation using the RBNZ inflation
calculator (comparing 2021 Q3 with 2022 Q3).
Provide any formula that has been used to support the calculation of the costings. Alternatively, a
spreadsheet of the costing that demonstrates the formula used to calculate the costing can be attached.
Provide a breakdown of total initiative expenditure by individual expense category. Total operating and capital expenses in this section
must match the totals in
Section 1B: Summary of funding profile. To duplicate these rows for additional rows, select the applicable row
below and click the button that appears at the bottom right.
Operating expenses ($m)
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Operating expense
2026/27 &
2022/23
2023/24
2024/25
2025/26
Total
category
outyears*
Fare revenue foregone
[●]
71.000
72.000
74.000
74.000
291.000
from under-25s
concession
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Fare revenue foregone
[●]
12.000
12.000
12.000
12.000
48.000
from Total Mobility
PTA Administration Cost -
3.866
0.568
0.568
0.568
5.570
Ticketing system changes
and ongoing maintenance
PTA Administration Cost -
4.560
1.011
1.011
1.011
7.593
Card distribution
PTA Administration Cost -
0.525
0.525
0.525
0.525
2.100
Communications and
marketing
PTA Administration Cost -
2.750
3.199
3.199
3.199
12.347
Resourcing and customer
support
PTA Administration Cost -
1.020
1.020
Project management
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Monitoring and evaluation [●]
0.300
0.300
0.450
1.050
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[●]
1.297
New FTE wage funding
0.244
0.253
0.393
0.407
New FTE/contractor
[●]
0.123
0.128
0.199
0.206
0.656
overhead funding
Waka Kotahi
[●]
1.66
1.68
1.72
1.72
6.78
administration costs
Total ($m)
[●]
98.048
91.664
94.065
93.636
377.413
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*Extend the profile above to a “steady state” if funding into outyears is irregular. Delete “& outyears” for time-limited funding.
# of new FTEs (incl.
2022/23
2023/24
2024/25
2025/26
2026/27
Total
contractors) over the
forecast period
[●]
[●]
[●]
[●]
[●]
[●]
Capital expenses ($m)
Capital expense
22/23
23/24
24/25
25/26
26/27
27/28
28/29
29/30
30/31
31/32* Total
category
Total ($m)
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
*Extend the profile above if funding is needed beyond 2031/32.
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Section 3C: Options analysis
The answer to each question must not exceed 1-2 paragraphs.
Describe how the longlist of options was generated. Briefly summarise each shortlisted option and describe
whether and how each shortlisted option would achieve the initiative’s intended outcome(s).
The costing of this initiative is based on ful Crown funding for the concession on a permanent basis, as was
agreed for the original concession. Taking this approach to an extension to under 25s and Total Mobility wil
incentives uptake of the extended concession among public transport authorities.
Ministers could consider the fol owing options:
•
Extend only to under 25s (ie not Total Mobility) – this would support public transport affordability and
mode-shift objectives
•
Extend only to Total Mobility passengers – this would address cost barriers for those who rely on
Total Mobility services, but does not achieve mode shift and emission reduction objectives. This is
costed in the scaled down option.
What were the range
of options
•
Extend half price fares to al public transport users, as is currently in place and has been since April
considered?
2022. Extending half-price public transport (and Total Mobility) for the duration of any phasing of
petrol excise duty would likely require around $10 to $12 mil ion per month. Indicative costs from
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of icials suggest funding of up to $152 mil ion per annum would be required to maintain reduced
fares.
•
Provide free fares to al children. Officials estimate a cost of $40 to 42 mil ion if providing free fares for
children under 15 years. The prediction models could only analyse age blocks of five years, and the
estimate for providing free fares to under 20 years is $102 to $106 mil ion, with approximately double
the amount of people benefiting (under-20s was estimated to be 71 mil ion, under 15 estimated to be
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38 mil ion).
Note, Cabinet agreed that that half-priced fares for Total Mobility are extended indefinitely, with further details
to be agreed by the Minister of Transport when considering next steps on taking action towards fuel prices [CAB-
22-MIN-0554 refers]
Describe what analyses and methodologies were used to evaluate the long-list and short-list options. Attach
any further Options Analysis and/or Cost Benefit Analysis to support your answer. This could include any He
Ara Waiora and/or the Living Standards Framework considerations.
Detail the monetary and non-monetary costs and benefits to the agency, broader public sector, New Zealand
society and environment that were included in the options analysis, and how they were quantified, including
from a Te Ao Māori perspective.
What was the
Describe how engagement/consultation with partners/stakeholders/customers, including iwi and Māori,
process used to
informed the identification and quantification of costs and benefits.
select the preferred
Describe the climate impacts analysis used to support the options analysis, and the selection of the preferred
option?
option. Attach the Climate Implications of Policy Assessment (if relevant) and any other supporting evidence.
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The Climate Implications of Policy Assessment (CIPA) team has been consulted and confirms that the CIPA
requirements do not apply to this proposal as the GHG emissions reductions are not a primary objective of
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this initiative nor do the GHG emissions impacts surpass the CIPA thresholds.
Describe how the preferred option represents best public value.
What sensitivity analysis was undertaken and how did it influence the choice of preferred option?
Counter-factual
Explain the implications if funding is deferred or not approved. If there are options (e.g. choosing to reduce
question
either output or quality of an existing service if funding is not approved), detail these here. Explain how the
department would address the pressure or problem if the funding is not approved
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If the funding is not approved or deferred, the Community Connect concession scheme wil stil proceed for
CSC holders, as funding has already been approved in Budget 2022. This may include some of the cohort
that are the focus of this initiative (e.g. the under 25 year olds who are eligible for CSCs).
A review of Total Mobility is expected to occur over the next 12 months, which wil look at a range of issues with
the scheme, including affordability. If funding for the extension of Community Connect to Total Mobility is not
approved, the review may include recommendations relating to affordability of the scheme and if a concession
should be applied.
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Section 3D: Scaled option
The answer to each question must not exceed 1-2 paragraphs.
Provide a concise overview of the scaled down option to fund this initiative (the funding level below which it
would be better to defer the initiative than fund it).
The scaled option below would be to fund an extension of the community connect concession scheme to Total
mobility card holders only. If choosing between funding Under 25s or Total Mobility Card holders, the cost of
funding concessions to Total Mobility passengers is much cheaper and is considered to be the minimum spend
for an extension of Community Connect to be viable.
Explain how the initiative’s expected outputs and outcomes would differ if ful y funded and any risks associated
Scaling option
with scaling down.
overview
Extending the concession to only Total Mobility does not support emissions reductions, and wil remove most
of the emissions reductions and mode-shift gains, as the number of people benefiting from the scheme would
greatly reduce.
If the initiative cannot feasibly achieve its objectives without full funding (i.e. scaling option is not viable),
succinctly explain why (e.g. if the initiative is to purchase a discrete asset at a set price).
1982
Explain the formula and assumptions for the scaled option if they are different from those for the preferred
option.
Formula and assumptions for these costings are consistent with those used for the preferred option above.
Provide a breakdown of what the scaled down option would purchase. Add additional rows to the table as needed by selecting a row
ACT
and clicking the button that appears at the bottom right.
Operating expenses ($m)
Operating expense
2026/27 &
2022/23
2023/24
2024/25
2025/26
Total
category
outyears*
Fare revenue
[●]
12.000
12.000
12.000
12.000
48.000
foregone from Total
Mobility concession
Waka Kotahi
[●]
0.240
0.240
0.240
0.240
0.960
Administration costs
PTA Administration
[●]
0.250
0.250
0.250
0.250
1.000
Cost -
Communications and
marketing
PTA Administration
[●]
0.688
0.688
0.688
0.688
2.752
INFORMATION
Cost - Resourcing and
customer support
RELEASED UNDER THE
[Name of operating
Click or tap Click or tap Click or tap Click
or Click or tap Click or tap
expense category]
here
to here
to here
to tap here to here
to here to enter
enter text.
enter text.
enter text.
enter text.
enter text.
text.
[Name of operating
[●]
[●]
[●]
[●]
[●]
[●]
expense category]
Depreciation and/or
[●]
[●]
[●]
[●]
[●]
[●]
OFFICIAL
capital charge (if
relevant)
New FTE wage
[●]
[●]
[●]
[●]
[●]
[●]
funding
New contractor wage
[●]
[●]
[●]
[●]
[●]
[●]
funding
New FTE/contractor
[●]
[●]
[●]
[●]
[●]
[●]
overhead funding
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BUDGET-SENSITIVE
[Name/type of
[●]
[●]
[●]
[●]
[●]
[●]
contingency]
Total ($m)
[●]
13.178
13.178
13.178
13.178
52.712
*Extend the profile above to a “steady state” if funding into outyears is irregular. Delete “& outyears” for time-limited funding.
# of new FTEs (incl.
2022/23
2023/24
2024/25
2025/26
2026/27
Total
contractors) over the
forecast period
[●]
[●]
[●]
[●]
[●]
[●]
Capital expenses ($m)
Capital expense
22/23
23/24
24/25
25/26
26/27
27/28
28/29
29/30
30/31
31/32*
Total
category
[Name of capital
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
expense category]
[Name of capital
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
expense category]
[Name/type of
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
contingency]
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Total
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
[●]
*Extend the profile above if funding is needed beyond 2031/32.
Section 4: Delivery
ACT
Section 4A: Procurement and workforce requirements
The answer to each question must not exceed 2-3 paragraphs.
Describe the key resources (workforce, goods, assets, services) that need to be sourced, including any
ancil ary services. The answer should align with the initiative description and the problem definition in
Section 1A and Section 2A respectively. It is optional to attach the Procurement Plan for the initiative.
This initiative purchases:
•
A 50% fare concession for under 25 year olds and Total Mobility passengers. This can also
What is the initiative
be understood as fare revenue forgone for these user groups.
purchasing/funding?
•
Implementation costs for PTAs to implement the concessions
•
Implementation costs for Waka Kotahi to implement the concessions, including engagement
and communication to promote the concession (focussed particularly on Maori and Pasifika
communities)
•
Resource for the Ministry of Transport to monitor and evaluate the concession
INFORMATION
RELEASED UNDER THE
Describe the market you are looking to procure the above key resources from. Support your answer
with evidence of any market testing that has been completed, and any engagement that has been
undertaken with the relevant supply markets.
Public transport authorities have responsibility for public transport services, including the provision of
fare concessions. PTAs wil need to work with their ticketing providers (eg Snapper, HOP) to provide
the concession on smartcards, and establish necessary back office systems and application
processes.
OFFICIAL
Is there a market that can
meet these needs?
Total Mobility services are provided by private taxi companies. The scheme is administered at a
regional level by PTAs, including assessing applications for the scheme.
What is the capacity and capability of the market to provide these resources and how has this been
tested?
The half price fares policy has demonstrated wil ingness and capability to set up a reduction in fares
nationwide within short timeframes. However, implementation of targeted concessions require more
time to implement. We have seen with Community Connect that PTAs are dependent on their ticketing
BUDGET-SENSITIVE
10
BUDGET-SENSITIVE
providers to provide technical solutions in short timeframes, and this continues to be a chal enge in
some regions for meeting the 1 February launch date for CSC holders.
For new FTEs and/or contractors, outline occupation and skil s area and indicate the market capacity
to fill these roles.
What potential suppliers have been identified for the initiative, are they interested in participating in the
procurement, and do they have the capacity and capability to meet these needs?
What other competitors are there for similar workforce, goods, and services around the same time as
this initiative? Have opportunities to collaborate or strategies to deconflict competing timelines been
explored?
Government Procurement
Does the proposed approach align with Government Procurements Rules? If not, on what basis is the
Rules
initiative exempted?
Section 4B: Risks, constraints, and dependencies
The answer to each question must not exceed 1-2 paragraphs
Describe the main risks associated with this initiative and the proposed mitigations to address these.
Focus on the 20% of risks which are likely to provide 80% of the initiative’s risk values. It is optional to
attach the Risk Register for the initiative.
1982
The main risk associated with this initiative is the availability of public transport services for the
concession to be used on. The current bus driver shortage is placing considerable strain on PT
networks in many regions, resulting in reduced timetables and cancelled services. Through Budget
2022, $61 mil ion is being provided over four years to improve bus driver wages and help stabilise the
ACT
workforce, and further funding is being sought in Budget 2023 to make further improvements to wages
and conditions.
What are the main risks?
Committing the Crown to provide transport concessions poses a fiscal risk. Delivery of a half price
concession could commit the Crown to absorb fare escalations which it has no control over (as PTAs
are responsible for setting fares). To mitigate this risk, officials wil provide advice on funding options,
such as bulk funding, to mitigate the Crown's on-going financial contribution.
There are also reports from some regions of a reduction in availability of Total Mobility services, with
some regions reporting no service providers. Te Manatū Waka intends to start a review of Total
Mobility in this financial year, to look at the current issues with the scheme, and identify potential
improvements.
Describe any key constraints that have been and/or could be placed on the initiative. Extending the concession to a greater number of passengers could increase demand for public
What are the key
transport services, which are already under pressure as outlined above. Increased demand in services
INFORMATION
constraints?
can put further constraints in delivering the proposed services.
RELEASED UNDER THE
It wil also require extra resources for PTAs in issuing discount cards, setting up application processes
and back office systems – these wil take time to deliver.
Describe any key dependencies that are outside the scope of the initiative and may determine the
initiative’s success.
What are the key
This initiative depends on the fol owing agencies, service providers and other work streams:
dependencies?
•
Public Transport Authorities and their ticketing providers
•
Waka Kotahi,
OFFICIAL
•
Taxi services providers,
•
Other initiatives that are underway for example budget bid for 2023 for bus driver wages,
cost pressure bids for funding shortfal s for PTAs
Section 4C: Governance and timeframes
The answer to each question must not exceed 1-2 paragraphs.
What are the governance
What is the governance structure, including decision making and any advisory groups? It is optional to
arrangements for this
attach the Governance Diagram showing the governance structure.
initiative?
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BUDGET-SENSITIVE
Governance arrangements for the original community connect concession scheme wil apply to the
proposed extension. Waka Kotahi wil be chairing a cross-agency governance group, with
representatives from MoT, Waka Kotahi and PTAs. MSD wil also be represented, due to their role in
administering the CSC.
A project team comprising central government agencies is also in place, and wil be used for
implementation of the extension.
Explain how the governance structure provides for input from partners/stakeholders/customers,
including iwi and Māori? Public Transport authorities, as a part of their delivery responsibility wil engage with their key
stakeholders and customers to whom they are providing services to. This wil include iwi and Māori
group.
Outline key milestones and the expected timeframe for the delivery of these milestones. When wil the
responsible Minister(s) receive information on implementation and delivery of this initiative?
Timeframes and
monitoring
Quarterly report to Ministers on CERF wil be the main reporting. Community Connect wil be evaluated
four years after launch (ie 2027).
Section 4D: Demonstrating performance
1982
The answer to each question must not exceed 1-2 paragraphs.
Does this meet the threshold of a significant initiative? Is it part of an existing strategy / work programme / initiative with existing
reporting, and if so what is it called?
Outline the type (or types) of evaluation planned and their timeframe(s). Indicate what funding is proposed to be al ocated for
ACT
evaluation.
Describe the performance information that would be included in the Estimates if this initiative was funded, or if the performance
information in the Estimates is not expected to change then describe the reasons for that decision.
Te Manatū Waka is already preparing for an evaluation of Community Connect, we anticipate completing an evaluation four years after
the concession (as original y agreed through Budget 22). This can be expanded to encompass under 25s and Total Mobility
passengers.
For performance information, it is expected that information being collected for the Community Connect scheme already be can
leveraged to report on progress made against this initiative.
Section 5: Initiatives with Distributional/System Impacts
Section 5A: Māori initiatives
INFORMATION
The answer to each question must not exceed 2-3 paragraphs.
A Direct impact
☐
Explain your answer to A.
RELEASED UNDER THE
Indirect impact
☒
This scheme aims under 25-year-olds and total mobility
users. This section of the society wil also include Māori
population. Māori that represents this section of the
community wil receive benefit from this scheme.
What kind of impact
B Targeted and tailored impact
☐
Explain your answer to B.
would the initiative
Disproportionate positive impact
have on Māori?
☐
This concession is not specifically targeted at Māori, but
OFFICIAL
Other
☒ they wil receive benefit depending on their access to public
transport
C List any assumptions you have made in considering impacts for Māori/iwi/hapū/whanau.
We are assuming that Māori are less likely to live close to existing public transport services. We are
also assuming that Māori do not have good access to total mobility services.
How does the initiative
Kotahitanga
Tikanga
Whanaungatanga
Manaakitanga
Tiakitanga
align with any of the
☐
☐
☒
☒
☐
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12
BUDGET-SENSITIVE
means of He Ara
Discuss how the initiative demonstrates one or more of the Means of He Ara Waiora identified above; this
Waiora?
should draw on responses highlighted in previous sections. This scheme, through affordability and accessibility to public transport wil provide the opportunity to
connect with the community and develop a shared sense of whanaungatanga. Increasing affordability and
accessibility to public transport also shows manaakitanga for low-income New Zealanders.
Te Taiao
Demonstrate how the initiative wil contribute to one or more of the Ends of He Ara
Waiora, this should draw on responses highlighted in previous sections.
How will the initiative
☐
contribute to the ends
Te Ira Tangata
of He Ara Waiora?
This initiative wil support tangata whaikaha Māori and rangatahi Māori to access
☒
education, social and cultural opportunities, supporting greater connections to their
culture and to communities.
Section 5B: Pacific initiatives
The answer to each question must not exceed 2-3 paragraphs.
A Direct impact
☐
Explain your answer to A.
Indirect impact
☒
1982
The concession is not targeted to Pacific people, but it wil
benefit young and disabled Pacific peoples (who use Total
What kind of impact
Mobility).
would the initiative
have on Pacific
B Targeted and tailored impact
☐
Explain your answer to B.
people?
Disproportionate positive impact
☐
ACT
As above.
Other
☒
C List any assumptions you have made in considering impacts for Pacific communities.
How would the
Lalaga Potu:
☐
Fale Fono:
☐
Vaka Moana:
☒
Te Kupega:
☐
initiative contribute to
Cultural Values and
Partnership and
Performance and
Capability
the focus areas of the
Principles
Governance
Improvement
All-of-Government
Demonstrate how the initiative wil support system shifts in one or more of the Strategy’s four focus areas
Pacific Wellbeing
identified above. Reviewing the outcomes diagrams in the Pacific Wel being Outcomes Framework wil help
Strategy?
you to identify how your initiative aligns with these system shifts (see pages 31 to 37).
Goal 1: Thriving
☐
Goal 2:
☐
Goal 3: Resilient
☒
Goal 4:
☒
Pacific languages,
Prosperous
and healthy
Confident,
How would the
cultures, and
Pacific
Pacific families
resilient, and
INFORMATION
initiative contribute to
identities
communities
thriving Pacific
the outcomes for
young people
Pacific communities
Demonstrate how the initiative wil contribute to one or more of the community outcome statements for Pacific
RELEASED UNDER THE
articulated in the
communities found in the Pacific Wel being Outcomes Framework (see pages 6 to 28).
Pacific Wellbeing
Outcomes
Pacific youth under 25-year-old wil be supported by this concession. It wil enable them to contribute, be a
Framework?
part and stay connected with the community. This scheme wil provide accessibility to education and
employment pathways. It wil also provide the opportunity for social and cultural connection helping in
mental health and wellbeing.
Section 5C: Child poverty initiatives
OFFICIAL
The answer to each question must not exceed 2-3 paragraphs.
A Direct impact
☐
Explain your answer to A.
Indirect impact
☒
What kind of impact
This concession wil provide for easier and affordable
would the initiative
transportation option for young people. Public transport will
have on reducing child
be more accessible increasing the social and cultural
poverty?
opportunities. This scheme wil aide in reducing household
budgets.
B Targeted and tailored impact
☐
Explain your answer to B.
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BUDGET-SENSITIVE
Disproportionate positive impact
☐ As above.
Other
☒
Yes
If yes, indicate which of the six high-level wellbeing outcomes it aligns to. Further information on
the Child and Youth Wellbeing strategy can be found at Child and Youth Wel being
Does the initiative
(childyouthwellbeing.govt.nz).
align with the Child
and Youth Wellbeing
This scheme wil indirectly promote the positive engagement and progression and achievement in
Strategy?
education. Affordable public transport wil give them the opportunity to connect socially and
opportunity to play, develop and grow.
Section 5D: Initiatives with impacts on women and girls
The answer to each question must not exceed 2-3 paragraphs.
Māori
☒ Pacific
☐ Asian
☐ Culturally and
☐
linguistically diverse
Older persons
☐ Younger
☒ Migrants
☐ Refugees
☐
1982
persons
LGBTQIA+
☐
Rural persons
☐
Students
☒
Disabled people
☒
and
and those with
communities
disabilities
ACT
Which group(s) of
Business owners
☐ Employees
☐ Specific
☐ Other
☐
women and girls
industries or
would be impacted by
sectors
the initiative? Select al
Provide any additional information to support or clarify your answer.
that apply.
Extending the Community Connect concession to under 25 years olds and Total Mobility passengers is
expected to have a positive impact on women who are younger persons or those with disabilities.
Wāhine Māori who are under 25 or total mobility users are likely to benefit, but they may receive less
benefit if their travel patterns are such that public transport is not a convenient mode, e.g. they are making
multiple trips or “trip-chaining”, or are more likely to travel with dependents, who may not be eligible for
discount or concession (however, in the case of the latter scenario, it is likely those dependents are
children who wil be eligible for another concession).
Provide disaggregated data on the women and girls who would be affected by the initiative. Where applicable,
identify the number of women and girls who are already being supported by the current initiative or policy
(status quo), and the number of women and girls who wil be targeted (aspirational outcome).
INFORMATION
39% of women aged under 25 years old have used public transport at some point in the past year/12 months
(an annual average of about 260,000 people).
RELEASED UNDER THE
How many women and 27% of women aged under 25 years old have used public transport at some point in the past month (an
girls would be affected annual average of about 184,000 people).
by this initiative?
Data from New Zealand Household Travel Survey using 2018-2021 data. Please note that there were COVID
19 impacts on surveying in the 2019/20 and 2020/21 survey years, and there have been impacts on use of
PT over this time period.
The number of female Total Mobility card holders who use public transport was not available, however, is
estimated to be much smaller by comparison.
OFFICIAL
Qualitative impacts: Refer to the guidance for examples. What is the initiative
Describe the overall aspirations of the initiative in how it would benefit women and girls (the vision). Secondly,
expected to achieve
consider and describe how the initiative may help to overcome gender stereotypes, roles, and pressures.
that will help to
improve outcomes for
The initiative has not been targeted or tailored for wāhine Māori, but it has the potential to benefit those who are
women and girls,
under 25 year olds or total mobility users. The extent to which they wil be benefit depends on additional factors,
including for wāhine
such as the availability and convenience of public transport services.
Māori and kōtiro?
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BUDGET-SENSITIVE
Describe the direct impacts, including the immediate impacts on women and girls as a proportion of the
targeted demographic. Secondly, describe the indirect impacts, such as the secondary benefits or long-
What direct and
term benefits.
indirect impacts on
women and girls is the Same as for wāhine Māori – the initiative wil directly benefit women and girls who are under 25-year-olds
initiative expected to
or total mobility users wil have direct impact from the concession scheme, but they may benefit less if their
have, including on
travel patterns are such that public transport is not a convenient mode.
wāhine Māori and
kōtiro?
Indirectly, it may help develop a public transport using habit which wil help in staying connected supporting
overall mental and physical wellbeing over the longer term.
Are there any
This could be both short and long-term impacts. For example, are there any groups of women and girls
anticipated negative
who may be excluded from the initiative? Will the initiative inadvertently reinforce or rely on existing gender
impacts of the
roles, stereotypes and/or pressures?
initiative on women
and girls, including on
None.
wāhine Māori and
1982
kōtiro?
This question is to explain the overlap, not to reiterate the impacts identified above.
Describe how the
initiative contributes
This initiative contributes to the just transition objective, by supporting low income wāhine Māori and kōtiro
to the wellbeing
to access jobs, health, and social services through public transport. This may also contribute to improved
objectives and
ACT
physical and mental wellbeing for wāhine and kōtiro, through transport savings and enabling social
improves outcomes
connection and access to services.
for women and girls.
Section 5E: Initiatives with environmental impacts
The answer to each question must not exceed 2-3 paragraphs.
Clean Transport
☒
Energy
☐
Living and Natural ☐
Terrestrial and
☐
Efficiency and
Resources and
Aquatic
Renewable
Land Use
Biodiversity
Energy
Does the initiative
Climate Change
☐
Sustainable
☐
Pol ution
☐
Green Buildings ☐
align to a category
Adaptation
Water and
Prevention and
within the Green Bond
Wastewater
Control
Framework?
Management
INFORMATION
Please advise whether the initiative meets the category specific criteria for the Green Bonds Programme
RELEASED UNDER THE
(see section 4.5 of the Budget 2023 Guidance).
The concessions may be used on public transport buses that emit for than 50gCO2 per passenger-km, so
may be considered ineligible for Green Bonds financing.
A Direct impacts
☐
Explain the nature and size of the environmental impacts by
type (both positive and negative).
Indirect impacts
☒
Does the initiative
Reduction in public transport fares wil promote its usage
have significant direct
which wil in turn aid the reduction of emissions. It is
OFFICIAL
or indirect
however unlikely to be significant.
environmental impacts
(positive or negative)
B Avert long-term tipping-points
☐
Explain how the impact of the initiative relates to
beyond any climate
environmental tipping-points.
Advance long-term tipping-points ☐
change implications
caught by CERF?
C List any assumptions you have made in considering these impacts (see section 4.5 of the Budget 2023
Guidance).
Increased public transport uptake as a result of the concession has been assumed.
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BUDGET-SENSITIVE
Section 5F: Regulatory systems initiatives
The answer to each question must not exceed 2-3 paragraphs.
Which regulatory
List the name(s) of the regulatory system(s). For example, Consumer and Commercial; Courts and Tribunals;
system(s) does the
Climate Change.
initiative relate to?
A major government ☐
Managing or
☐
Enabling economic
☐
Other
☐
Which category
reform priority (e.g.
mitigating
activity and/or
does the initiative
manifesto
operational
easing compliance
primarily relate to?
commitments)
performance of risks
burdens
If other, describe here.
Which stage of the
I
f Cabinet decisions on the policy have been made, provide the relevant Cabinet Minute.
policy or legislative
process is the
proposal at?
1982
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INFORMATION
RELEASED UNDER THE
OFFICIAL
BUDGET-SENSITIVE
16
