To:
Peter Mersi
MEMORANDUM
Withheld under
From:
section 9(2)(a) of
the Official
Information Act
CC:
Bryn Gandy; Maureena van der Lem
1982
Date:
26 October 2017
Through: Helen White
Subject:
Auckland East-West Motorway Link
1
This memo provides you with information on how the Auckland East-West Motorway
Link (East-West Link) project may be delayed. This Memo has been developed in
consultation with the Legal Team and the Commercial and Governance Team.
Background
2
The East-West Link is a proposed investment in the National Land Transport
Programme 2015-2018, with construction proposed to start in 2018. (See
https://www.nzta.govt.nz/planning-and-investment/2015-18-national-land-transport-
programme/nltp-in-the-regions/auckland/).
3
The East-West Link has been identified by the new government in its transport policies:
The Labour Party transport policy document seeks a better value for money
East-West Link. The cost of the East-West Link will be reduced by adopting an
option with a better benefit to cost ratio, saving $1.2 billion
The Confidence and Supply Agreement with the Green Party states that
Auckland’s East-West motorway link will not proceed as currently proposed.
4
The proposal identifies savings and the ways in which these savings may be used to
fund other land transport projects.
Options
5
You have asked how the government’s intentions for the East-West Link might be given
effect.
6
This outcome could be achieved by:
A discussion between the Minister and the NZ Transport Agency Board about
government priorities, followed up with a letter from the Minister to the Board
where the Board is invited to identify how the Board expects to achieve these
priorities, including if it requires any amendment to the GPS;
Page 1 of 3
The Board, in its response may identify where the GPS needs to be amended.
Depending on how quickly this change is required, it may involve amending the
GPS 2015 or it may be addressed in the new GPS 2018.
Potential follow up to confirm Government priorities through the Ministerial
expectations in the GPS and potentially the Letter of Expectations to the Board
(as a Crown entity).
7
We have considered other options, for example, recasting the strategic direction and
associated funding ranges in the GPS as a first step or amending legislation to delay
and require restructuring of the East-West Link, or other actions under the Crown Entity
Act. These options are not recommended.
Allocation of potential NLTF savings
8
If the savings to the NLTF identified in the government’s transport policies are intended
to be applied to specific transport projects, then the Land Transport Management Act
2003 (the Act)] sets the parameters. The relevant section of the Act are:
Section 70 which relates to the GPS and, therefore, use of the NLTF
“70 Agency to give effect to GPS on land transport in respect of funding of land transport system
(1)The Agency must give effect to the GPS on land transport when performing its functions
under subpart 1 of Part 2 in respect of land transport planning and funding.
(2) To avoid doubt, the GPS on land transport may not impose an obligation on the Agency to
approve or decline funding for a particular activity or any combination of activities under section
20.”
Section 95 (2) which sets out the Board’s independent functions
(
2) The Agency’s statutorily independent functions are to—
(a)
issue, endorse, alter, replace, renew, suspend, or revoke any land transport document or
other authorisation under any enactment; and
(b)
grant exemptions under any enactment; and
(c)
enforce the provisions of any enactment conferring functions or duties on the Agency;
and
(d)
determine whether particular activities should be included in a national land transport
programme; and
(e)
approve activities or combinations of activities under section 20; and
(f)
approve procurement procedures.
9
This means the GPS cannot be constructed in such as way as to remove this
independence and nor can other instruments be used to direct the NZ Transport Agency
Board in the matters that it is statutorily independent.
10
Strong signals can be provided to the NZ Transport Agency Board through the GPS
and/or Crown entity instruments (e.g. Letters of Expectations), that the Board would
consider when making decisions on activities within the NLTP. However, GPS signals
are at a general level. This means they can capture more than is intended and, as the
NZ Transport Agency Board decides on projects, still leaves some uncertainty as to
which projects proceed into the NLTP.
11
We can advise further on other options, if required. For example, if the $1.2 billion of
savings identified from a review of the East-West Link are to fund rail projects, then the
GPS could include this amount in a rail activity class where rail (and light rail) projects
may be funded. This would also require the scope of the GPS could be amended to
allow for this investment.
12
However, this example/ option is not as simple or easy to implement as it may appear.
This is because decisions are being made by the NZ Transport Agency about projects
on the rail network for which KiwiRail is responsible. For your information, a separate
internal paper has been prepared on using the NLTF to fund rail, which canvasses
these issues.
13
We (the investment Team) and the Legal Team would be happy to discuss this memo
with you if you would find this helpful.
Kind regards
Withheld under
section 9(2)(a) of
Contractor
the Official
Information Act
1982