AGENDA NO.
THE
4.1
ACT
BOARD PAPER
Paper no:
2018/02/1211
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Meeting date:
9 February 2018
Prepared by:
Gavin Armstrong, Manager Organisational Performance
Jannette Farley, Principal Advisor Regulatory & Transport Policy
Recommended by:
Jenny Chetwynd, General Manager Strategy, Policy and Planning
INFORMATION
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Board function:
Setting sector and organisational direction
Strategic alignment to government direction and implications
Subject:
for Statement of Intent/Statement of Performance
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Expectations, Investment Assessment Framework and Business
Planning
OFFICIAL
It is recommended that the NZ Transport Agency
Board resolves to …
THE ACT
•
Note the development of a new Government Policy Statement on Land
Transport 2018-2021 (GPS).
•
Agree that changes wil be required to the NZ Transport Agency’s Strategic
Framework, Statement of Intent and Statement of Performance Expectations to
reflect the new Government Policy Statement on Lan
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•
Note details of proposed changes to the NZ Transport Agency’s Strategic
Framework, Statement of Intent and Statement of Performance Expectations
wil be presented to the Transport Agency Board in March 2018 (where the
Transport Agency Board agrees changes wil be required).
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RELEASED
OFFICIAL
The Government Policy Statement guides the
Transport Agency’s strategy and investments
THE ACT
• The Government Policy Statement on Land Transport (GPS) sets out the Government’s
priorities for expenditure from the National Land Transport Fund (NLTF) over a ten
year period. It sets out how funding is allocated between activity classes and directly
guides the Transport Agency’s investment in the land transport system
• The GPS is issued every three years to align with the development of the National
Land Transport Programme (NLTP) UNDER
• The Transport Agency is required to engage with the Minister of Transport and
demonstrate that it is positioned to deliver on the Government’s priorities and ensure
that the NLTP gives effect to the GPS
• The Transport Agency’s current strategy was approved by the Transport Agency Board
in December 2016. It is contained in the
NZ Transport Agency Statement of Intent
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2017–21 (SOI) and
NZ Transport Agency Statement of Performance Expectations
2017/18 (SPE)
• The current strategy was created under GPS 2015, which was developed by the
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previous National-led government
OFFICIAL
The Transport Agency’s operating context
is changing
THE ACT
•
The Government Policy Statement on Land Transport (GPS) and the Minister of Transport’s
Letter of Expectations are the primary instruments that governments use to direct transport
investment towards these wider outcomes
•
The development of a new GPS (GPS 2018) by the Labour-led coalition Government requires
the Transport Agency Board to re-examine the Transport Agency’s strategy, so that assurance
can be provided to the Minister of Transport that the Transport Agency is positioned to
deliver on the Government’s priorities UNDER
•
Overal , it is expected that that Transport Agency wil need to accommodate:
•
significant lift in public transport ,walking and cycling as mechanisms for addressing
multiple government outcomes (emissions; liveable cities; demand management)
•
new focus on rapid mass transit for high growth urban areas; future involvement of rail
•
road investment to prioritise regional connections; safety and resilience; focus on mode-
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neutrality and multi-modal solutions
•
environmental and health outcomes having significantly higher priority – greater parity
with other outcomes
•
significant re-prioritisation of existing commitments
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•
new targets and measures, including non-monetised benefits
OFFICIAL
The strategic priorities of the new draft GPS
align closely with the Ministers’ direction…
THE ACT
STRATEGIC PRIORITIES
Current strategic
Proposal for
priorities – GPS 2015
Comment
GPS 2018
Economic growth and Access
This priority builds from the economic focus of GPS 2015 to incorporate a broad range of social and economic
productivity
outcomes. It is very wide-ranging, and covers a range of concepts around access, accessibility and mobility –
improved access to economic and social opportunities (including as a means to improve social inclusion and
wel being), improved economic outcomes and productivity, improved transport choice and accessibility (mobility)
for the disadvantaged (and indeed for everyone), and ensuring a transport system that is available and resilient. It
is seen as key to delivering ‘liveable cities’ and ‘thriving regions’.
This priority wil be delivered through several objectives: access, transport choice, and resilience.
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Safety
Safety
This priority is carried forward from GPS 2018, but cal s for an increased and sustained effort to achieve a
significant reduction in deaths and serious injuries. It signals a new approach that puts people first, and that
reduces risk through system-wide interventions to address unsafe behaviours, infrastructure, environments, and
vehicles across al transport modes.
Environment
This is a new priority, and is focused on reducing greenhouse gas emissions from transport (that is, climate change
mitigation).
Other aspects of ‘environment’ are addressed in the related objective, including:
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minimising adverse impacts on the local environment – including through better integration of transport and
land use
•
improved public health – reducing harm to people from noise and particulates, and raising levels of physical
activity (for example, through shifts to active modes)
Value for money
Value for
This priority has been carried forward from GPS 2015, with an increased emphasis on valuing a ful range of costs
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money
and benefits across al modes, and use of innovation and technology to improve the effectiveness and efficiency of
the system.
OFFICIAL
There are also some changes to themes
for the draft GPS…
THE ACT
THEMES
Current themes –
Proposal for
GPS 2015
Comments
GPS 2018
A one transport
A mode neutral
This new theme reflects the new government’s desire to see a modal shift from roads to public
system approach approach to transport transport and active modes (and possibly also towards lower carbon modes); and to see all
planning and
modes considered in decision-making about how best to deliver desired outcomes across the
investment decisions transport system. UNDER
Technology
Incorporating
This theme has been updated from the previous GPS to reflect the growing opportunities that
technology and
technology and innovation can and will offer – for example, to support transport choice,
innovation into the
provide alternatives to physical travel, optimise the way people and freight move between
design and delivery of modes and across the transport system, manage demand, and keep people safer. It signals the
the land transport
need for planning and investment to optimise these opportunities as they arise and into the
investment
future.
Integrating land use
This new theme reflects the importance of central and local government agencies working
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and transport
together to integrate land use and transport planning and delivery. This is essential to achieve
planning and delivery the full range of desired social, economic and environmental outcomes signalled in the GPS –
including effective travel demand management – through coordinated and effective delivery of
infrastructure and services to connect people to the places they work, live and play.
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OFFICIAL
The GPS 2018 will be further amended in 2019
THE ACT
Th e Minister of Transport has indicated GPS 2018 is being developed in two stages:
• The GPS 2018 (an interim measure) is being swiftly drafted to accommodate
the Government’s new priorities for land transport and provide timely
direction for the upcoming NLTP 2018-2021
• The Minister wil release an amended GPS in 2019, which wil specify the
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Government’s direction for land transport in greater detail than currently
indicated for the interim GPS. It is also likely to contain more fundamental
changes to the GPS structure and framework
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RELEASED
OFFICIAL
Aligning the Transport Agency’s Strategy to
Government Direction
THE ACT
•
The Transport Agency’s current Strategy is
wel -positioned at a high level to
accommodate emerging Government direction, and how it is expressed in the
i nterim GPS 2018 - given the current purpose, outcomes sought, and general
flexibility of the Focus Areas
• It is important that the Transport Agency takes the opportunity at this point in the
planning cycle to ensure its strategy and medium term priorities are as wel aligned
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as possible, so that the Transport Agency’s activities over the next three years
deliver what the government is looking for from the Transport Agency
• Re-aligning the current strategic framework with Government direction wil :
• ensure business planning is seamlessly guided by Government direction
through the Transport Agency’s strategy, as set out in the SOI and SPE
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• enable the Transport Agency Board to demonstrate to the Minister of
Transport that the Transport Agency can adapt to significant change and
deliver on Government priorities
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OFFICIAL
Identifying emerging priorities
THE ACT
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Drawing on insights around the Government's direction since November 2017, the
Transport Agency has identified six emerging priorities for the next three years that will
enable the Transport Agency to deliver on the Government's expectations within the
Transport Agency’s Strategic Responses and Focus Areas Framework
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These six emerging priorities are:
•
designing and delivering a land transport system that significantly reduces harm to
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people, and minimises adverse impacts on the environment
•
integrating transport and urban development outcomes to ensure customers can
easily access social and economic opportunities
•
enabling an optimised and more resilient transport network
•
improving customer experience, particularly by leveraging off digital technology
solutions
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•
enabling regional/community outcomes in partnership with Transport Agency
stakeholders
•
implementing key people, process and system strategies and programmes to
continue to lift the Transport Agency’s performance
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OFFICIAL
A robust process was used to identify priorities
THE ACT
• The process to identify the Transport Agency’s medium-term (that is, 2018-2021)
priorities began in November 2017 with the identification of key business internal
strengths and weaknesses; and external opportunities and threats in the context of
the new Government’s direction
• This information, together with the insights from the initial findings from the
Transport Agency's Performance Improvement Framework (PIF) review, customer
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insights, and early indications of Government priorities (through GPS discussions
with Ministry of Transport and the Minister of Transport) enabled the Transport
Agency to formulate a long list of opportunities to deliver on the Government's
expectations
• As more information about Government priorities came to light in December 2017
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through to January 2018, the long list was refined and consolidated to six emerging
priorities that reflect the new Government’s direction
• These emerging priorities wil provide the focus for the Transport Agency’s
planning over the next three years and wil be reflected in the Transport Agency’s
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next Statement of Intent and Statement of Performance Expectations
OFFICIAL
Implications of new priorities on the Transport
Agency’s Strategy Framework and SOI/SPE
THE ACT
• The Transport Agency wil need to adjust its strategic framework and Statement of
Intent and Statement of Performance Expectations to accommodate these six
(emerging) priority areas
• These changes can be made however without impacting on the intent of the
strategy and can be addressed within an amended Statement of Intent (SOI)
• The Transport Agency wil retain the Strategic Responses and Focus Areas
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structure, but look to consolidate the Focus Areas and emphasise their role as the
Transport Agency’s long term results framework
• The six new priorities would be introduced as short/medium term results with
corresponding targets
• These changes wil then direct and focus the Transport Agency’s planning and
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delivery as expressed in the Statement of Performance Expectations (SPE) 2018/19
• Specific changes to the strategy to reflect these priorities and new targets wil be
presented to the Board in March 2018
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OFFICIAL
This is the start of engagement on the Transport
Agency’s 2018/19 accountability documents
THE ACT
•
The Board’s decision about whether to amend the Statement of Intent 2017–21 wil
determine what materials are sent to the Board in the coming months
CONTENT
BOARD & ARA
ASSURANCE
CHAIRS UNDER
DOCUMENT CONTENT
DELEGATED
BOARD
BOARD
BOARD
ARA
BOARD
AUTHORITY
9 FEBRUARY
1 MARCH
20 MARCH (TBC)
17 APRIL
20 APRIL
BY 1 MAY
STATEMENT OF INTENT 2017-21 (IF NECESSARY)
Document outline and design concept
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Amended statement of intent
Decision on
whether to
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• Revised focus areas
amend content
draft
final
final
Amended statement of intent reflecting feedback from Minister
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STATEMENT OF PERFORMANCE EXPECTATIONS 2018/19
Document outline and design concept
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Revised focus area commentary (if necessary)
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draft
final
final
Significant Activities for focus areas
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draft
final
final
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Measures and targets for key performance indicators
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draft
final
final
Measures and targets for output classes
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draft
final
final
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$ Financial forecasts for output classes
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excluding business
planning outcomes
draft
draft
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$ Financial assumptions and principles
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report on compliance
report on compliance
$ Prospective financial statements
✓
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draft
draft
Final statement of performance expectations (including prospective
financial statements) reflecting feedback from Minister
✓
OFFICIAL
Document Outline