[Items 1 to 12 deal with changes to TNZ]
Provisions Coming into Force on 1 July 1996
13. Interpretation
14. New Part IA inserted
3A. Constitution of Transfund New Zealand
3B. Principal objective of Board
3C. Functions and powers of Board
3D. Functions and powers of Board in relation to alternative forms of transport
3E. Board to have powers of natural person
3F. Board to comply with policy directions
3G Use of words 'Transfund New Zealand'
3H Board to consider delegating or contracting out functions and powers
3I Delegation of Board's functions or powers to employees of Board
3J Delegation of Board's functions or powers to persons outside Board
[Items 15 to 17 deal with changes to TNZ]
18. New Parts II and III substituted
Land Transport Funding
8. Interpretation
9. Payment of roading revenue to Crown Bank Account
10. Crown's authority to incur certain land transport expenditure
11. Payment of roading revenue into Crown Bank Account
12. Payment of roading revenue from Crown Bank Account
National Roads Account
13. Board to operate National Roads Account
14. Management and investment of National Roads Account
15. Payments from National Roads Account
16. Payments by Board
17. Board may approve outputs and capital projects
18. Approved projects to form part of national roading programme
Payments from National Roads Account to Authority
19. Payments to Authority
20. Authority to operate State Highways Account
21. Management and investment of State Highways Account
22. Payments from State Highways Account
Payments from National Roads Account to Local Authorities
23. Payments to local authorities
24. Local authorities to operate Land Transport Disbursement Accounts
Restrictions on Payments from State Highways Account and Land Transport Disbursement Accounts
25 Interpretation
26. Competitive pricing procedure
27. Expenditure subject to competitive pricing procedure
28. Special provisions relating to in-house professional services
29. Special provisions relating to minor and ancillary works during 1997 and 1998
30. Certain payments for minor and ancillary works deemed to comply with section 27
31. Information to be provided by local authority in respect of certain payments
32. Determinations by Minister
33. Board may reduce payments in certain cases
34. Board may require certain information from Authority and local authorities
35. Payments may be conditional on projects being carried out to satisfactory standard
36. Certain payments prohibited
[The remainder of the Act deals with road safety and miscellaneous provisions relating to TNZ]
BE IT ENACTED by the Parliament of New Zealand as follows:
1. Short Title and commencement—
(2) Except as provided in subsection (3) of this section, this Act shall come into force on the day on which it receives the Royal assent.
(3) Sections 13 to 40 (except section 37 (1)) of this Act, and the Schedules to this Act, shall come into force on the 1st day of July 1996.
13. Interpretation—
[This initial section deals with definitions.]
14. New Part IA inserted—
The principal Act is hereby amended by inserting, before Part I, the following Part:
3A. Constitution of Transfund New Zealand—
(2) The Board shall consist of—
(4) The Minister shall not make any recommendation under subsection (3) of this section unless he or she has consulted with such persons, representative groups within the land transport industry or elsewhere, Government departments, and Crown entities as he or she considers appropriate.
5) A person may hold office as a member concurrently with any other office, except any office or appointment under the Transport Accident Investigation Commission Act 1990.
(6) The Board shall be a body corporate with perpetual succession and a common seal.
(7) The seal of the Board shall be judicially noticed in all courts and for all courts and for all purposes.
(8) The Board is hereby deemed to be a Crown entity for the purposes of the Public Finance Act 1989.
(9) The provisions of Schedule 1A to this Act shall apply in relation to the Board and its proceedings, members, consultants, agents, specialists, committees, and any employee.
The principal objective of the Board shall be to allocate resources to achieve a safe and efficient roading system.
3C. Functions and powers of Board—
(b) To approve capital projects and to purchase outputs under section 17 of this Act:
(c) To make payments from the National Roads Account as authorized by this Act:
(d) To review and revise the national roading programme in accordance with its most recent performance agreement:
(e) To approve competitive pricing procedures under section 26 of this Act:
(f) To audit the performance of the Authority as compared with its State highways programme:
(g) To assist and advise local authorities in relation to their functions, duties, and powers under this Act and the Land Transport Act 1993:
(h) To audit the performance of every local authority as compared with its regional programme or district roading programme, as the case may be:
(i) To provide the Minister with such information and advice as the Minister may from time to time require:
(j) To carry out such other functions and duties, in relation
to roading, as the Minister may from time to time prescribe by notice in
the Gazette.
(b) The making of payments from the National Roads Account—the Board shall act independently of the Minister and the Authority.
Without limiting any other provision of this Act, it is hereby declared that—
(b) Any such output may relate to one or more of the following, namely, passenger services, rail transport, and maritime transport; and, for the purposes of this paragraph, the terms 'passenger services', 'rail transport, and 'maritime transport' include the carriage of freight and the carriage of passengers.
3F. Board to comply with policy directions—
In the exercise of its functions, duties, and powers under this Act, the Board shall have regard to the policy of the Government in relation to land transport, and shall comply with any general directions relating to that policy given in writing signed by the Minister. Within 12 sitting days after any such direction is given, the Minister shall publish in the Gazette and lay before the House of Representatives a copy of that direction.
Cf. 1989, No. 75, s. 7
3G. Use of words "Transfund New Zealand"—
(2) Nothing in subsection (1) of this section shall apply to the Board or to any person who is appropriately authorized by the Board.
Subject to this Act, the Board shall, in the course of performing its functions and powers, consider whether it could most efficiently and effectively perform those functions and powers by means of its own operations or by delegating or contracting out those operations to appropriate persons selected after an appropriate competitive process.
Cf. 1993, No. 88, S. 20
3I. Delegation of Board's functions or powers to employees of Board—
(2) Every delegation under this section shall be in writing.
(3) The Board shall not delegate any functions or powers delegated to the Board by the Minister without the written consent of the Minister.
(4) In any case where the Board has delegated any functions or powers to an employee of the Board under this section, that employee may, with the prior approval in writing of the Board, delegate to any other employee of the Board such of those functions or powers as are so approved.
(5) Subject to any general or special directions given or conditions imposed by the Board, any employee of the Board to whom any functions or powers are delegated under this section may perform those functions and exercise those powers in the same manner and with the same effect as if they had been conferred or imposed on that employee directly by this Act and not by delegation.
(6) Every employee of the Board purporting to act under any delegation under this section shall, in the absence of proof to the contrary, be presumed to be acting in accordance with the terms of the delegation.
(7) Any delegation under this section may be made to a specified employee of the Board or to employees of a specified class, or to the holder or holders for the time being of a specified office of the Board or a specified class of office of the Board.
(8) No delegation under this section shall affect or prevent the performance of any function or the exercise of any power by the Board, nor shall any such delegation affect the responsibility of the Board for the actions of an employee of the Board acting under the delegation.
(9) Every delegation under this section shall, until it is revoked, continue in force according to its tenor, notwithstanding the fact that the employee of the Board by whom it was made may cease to hold office, and shall continue to have effect as if made by the employee for the time being holding that office.
(10) Every employee of the Board purporting to act under any delegation under this section shall, when reasonably requested to do so, produce evidence of his or her authority to so act.
3J. Delegation of Board's functions or powers to persons outside Board—
(2) Every delegation under this section shall be in writing.
(3) No delegation shall be made under this section without the written consent of the Minister.
(4) In any case where the Board has delegated any functions or powers to any person under this section, that person may, with the prior approval in writing of the Minister, delegate to any other person such of those functions or powers as are so approved.
(5) Subject to any general or special directions given or conditions imposed by t e Board, any person may exercise any functions or powers delegated under this section in the same manner and with the same effect as if they had been conferred or imposed on that person directly by this section and not by delegation.
(6) Any delegation under this section may be made to a specified person or persons of a specified class or to the holder or holders for the time being of a specified office or specified class of office.
(7) Every delegation under this section shall be given for a specified period but in any event shall be revocable at will.
(8) No delegation under this section shall affect or prevent the performance or exercise of any function or power by the Board, nor shall any such delegation affect the responsibility of the Board, for the actions of any person acting under the delegation.
(9) Every delegation under this section shall, until it is revoked or it expires, continue in force according to its tenor, notwithstanding the fact that the person by whom it was made may cease to hold office, and shall continue to have effect as if it were made by the person for the time being holding that office.
(10) Every person purporting to act under any delegation under this section shall, when reasonably requested to do so, produce evidence of his or her authority to so act.
(11) Any person who exercises any function or power under a delegation made under this section may charge the person in respect of whom the function or power 1S exercised a reasonable fee in respect of the exercise of that function or power.
18. New Parts II and III substituted ¾
(1) The principal Act is hereby amended by repealing Parts II and III, and substituting the following Parts:
Land Transport Funding
8. Interpretation—
In this Part of this Act, unless the context otherwise requires, 'roading revenue' means—
(b) All fees and charges payable under the Road User Charges Act 1977; and
(c) All fees and charges payable under Part I of the Transport (Vehicle and Driver Registration and Licensing) Act 1986; and
(d) All money receivable by the Crown from the sale of land acquired under the Public Works Act 1981 (or any enactment repealed by that Act) for the purposes of a State highway or any proposed State highway; and
(e) An amount equal to the goods and services tax payable on expenses, costs, and refunds payable under section 10 of this Act; and
(f) The proportion of the interest earned, or interest saved, from the investment of public money that relates to roading revenue; and
(g) Such amounts of public money as Parliament appropriates for the purpose from time to time; and
(h) All other public money that is required by any enactment to be treated as roading revenue for the purposes of this Act.
All roading revenue shall be lodged into the Crown Bank Account.
10. Crown's authority to incur certain land transport expenditure—
(2) The liability of the Crown under subsection (1) of this section shall be equal to the amount of roading revenue earned in that year and there shall be payable by the Crown—
(ii) Fuel excise duty in accordance with section 101 of this Act; and
(iii) Fees and charges in accordance with Part I of the Transport (Vehicle
and Driver Registration and Licensing) Act 1986; and
(d) To the Commissioner, the negotiated amount for the outputs delivered in relation to the safety (administration) outputs contained in an approved safety (administration) programme for that year less any revenue received or receivable by the Commissioner from other sources applicable to outputs in the programme; and
(e) To Transfund New Zealand, an amount equal to the roading
revenue for that year less the amount of the liabilities incurred for that
year under paragraphs (a) to (d) of this subsection.
12. Payment of roading revenue from Crown Bank Account—There shall be paid from the Crown Bank Account in each year—
(b) To the relevant collecting body, as soon as reasonably practicable after request by that body, any refunds of—
(ii) Excise duty under section 101 of this Act; and
(iii) Fees and charges in accordance with Part I of the Transport (Vehicle and Driver Registration and Licensing) Act 1986; and
(d) To the Commissioner, in such installments and on such terms and conditions as are from time to time agreed between the Minister of Finance and the Minister of Police, the negotiated amount for the outputs delivered under the approved safety (administration) programme for that year (net of revenue received by the Commissioner from other sources applicable to outputs in that programme); and
(e) To the National Roads Account of the Board, in such installments and on such terms and conditions as are from time to time agreed between the Minister of Finance and the Minister of Transport, the amount for the outputs delivered and the capital expenditure incurred in the national roading programme for that year.
13. Board to operate National Roads Account—
(2) Each year, in addition to the amount paid into the Account under section 11 of this Act, there shall be paid into the Account the following amounts:
(b) All financial assistance refunded to the Account by a local authority under section 23 (3) of this Act:
(c) All receipts relating to the trading revenue of the Board:
(d) All other money that should lawfully be paid into the Account.
14. Management and investment of National Roads Account—
(2) The Board may invest any money held in the Account in accordance with section 25 of the Public Finance Act 1989.
15. Payments from National Roads Account—
Payments from the National Roads Account shall be made only by or on behalf of the Board and such payments shall be made only in accordance with the provisions of this Act.
Cf. 1989, No. 75, s. 13
16. Payments by Board—
Each year there shall be payable out of the National Roads Account—
(b) All compensation or damages payable by the Board. Cf. 1989, No. 75, s. 17
(b) The Board considers that the budgeted expenditure on approved outputs and capital projects included in the national roading programme for the year concerned will not exceed—
(3) Where the Board decides not to approve under this section an output or capital project contained in a State highways programme, a regional programme, or a district roading programme, the Board shall—
(b) Give reasons for its decision.
(b) Necessary to effect immediate or temporary repair of damage caused by a sudden and unexpected event. Cf. 1989, No. 75, s. 14; 1992, No. 70, s 4
(2) No approved output or capital project shall be suspended or abandoned without the prior written approval of the Board.
19. Payments to Authority—
(2) The Board shall make such adjustments as it thinks appropriate to the amount to be paid to the Authority under subsection (1) of this section to take account of the amounts said into the State Highways Account under paragraphs (a), (b), and (h) of section 20 (3) of this Act.
(3) Notwithstanding anything to the contrary in this section, whenever the Board is satisfied that the amount of payments requested from the Board in respect of any approved output or capital project in any year is based upon a factor which is incorrect for any reason, the Board may, if it thinks fit, make such adjustments to the amounts to be paid under subsection (1) of this section as it thinks reasonable.
(4) If any Payment received by the Authority under subsection (i) of this section is not paid or not fully paid in the year in which it is received, the unpaid portion shall, unless the Board otherwise agrees, be refunded to the Account.
20. Authority to operate State Highways Account—
(2) All money received by the Authority from the National Roads Account shall be paid into the State Highways Account.
(3) Each year, in addition to the amount paid into the account under section 19 of this Act, the following money shall be paid into the State Highways Account:
(b) All money received by the Authority for or from its management of Crown lands under section 61 (4) of this Act:
(c) All money received by the Authority from the issue of permits under the Heavy Motor Vehicle Regulations 1974:
(d) All money derived from the provision of advisory and related services:
(e) All contributions made by developers to outputs and capital projects for which the Authority is responsible:
(f) All money received by the Authority under an order made by a Court under section 51 (3) of this Act:
(g) All money recovered by the Authority under section 55 (8) or section 57 (4) of this Act:
(h) All other money that is required by law to be paid into the Account.
(2) The Authority may invest any money held in the Account in accordance with section 25 of the Public Finance Act 1989.
Each year there shall be payable out of the State Highways Account—
(b) All compensation or damages payable by the Authority
(c) All compensation payable by the Crown under the Public Works Act 1981 in respect of the acquisition of any land for any of the purposes authorized by this Act.
23. Payments to local authorities—
(2) Notwithstanding anything to the contrary in this section, whenever the Board is satisfied that the amount of the interim payments requested from the Board in respect of any approved output or capital project in any year is based upon a factor which is proved to the satisfaction of the Board to be incorrect for any reason, the Board may, if it thinks fit, make such adjustments to the amount to be paid under subsection (1) of this section as it thinks reasonable.
(3) If any payment received by a local authority under subsection (1) of this section is not paid or not fully paid by the local authority in the year in which it is received, the unpaid portion shall, unless the Board otherwise agrees, be refunded to the Account.
(2) All expenditure from a Land Transport Disbursement Account shall be recorded in that account in a form that contains such details as are prescribed by the Board from time to time after consultation with the Controller and Auditor-General.
25. Interpretation—
(b) Does not include in-house professional services or
works associated with a State highway:
"1997 financial year" means the period commencing on the 1st day of July 1996 and ending with the close of the 30th day of June 1997:
"1998 financial year" means the period commencing on the 1st day of July 1997 and ending with the close of the 30th day of June 1998.
(b) The local authority and the Board shall be the parties to the arbitration:
(c) Sections 13 and 22 of the Arbitration Act 1908 (which relate to enforcement and remuneration respectively) shall apply in relation to an arbitration under this subsection as if this subsection were a submission to arbitration within the meaning of that Act, but no other provisions of that Act shall apply in relation to an arbitration under this subsection.
26. Competitive pricing procedure—
(2) In approving a competitive pricing procedure the Board may—
(b) Specify particular terms and conditions which shall
be excluded from any contract formed under that procedure.
(b) The safety and other interests of the public in respect of the output or capital project or the class of output or capital project:
(c) The desirability of encouraging competition in the sector of industry likely to supply goods or services in relation to the output or capital project or the class of output or capital project:
(d) The undesirability of excluding from competition for the output or capital project or the class of output or capital project any party who might otherwise be willing an able to compete:
(e) The costs of administration associated with the pricing procedure or of any contract formed under that procedure.
27. Expenditure subject to competitive pricing procedure—
(b) In respect of any output or capital project, shall be made from the Land Transport Disbursement Account of any local authority,—
(3) Without limiting subsection (1) or subsection (2) of this section,—
(b) No payment in respect of a passenger service shall be made by a local authority from any source to a passenger transport company; unless
(c) The amount of the payment has been determined by a competitive pricing procedure; and
(d) The local authority trading enterprise, or the passenger transport company, is a company that has no fewer than 3 directors, of whom—
(ii) Where there are 6 or more directors, not more than 2 are members or employees of any local authority; and
(f) The Board is satisfied that—
(ii) The local authority trading enterprise, or the passenger transport company, is being operated in accordance with the requirements of the Local Government Act 1974; and
(iii) The local authority trading enterprise is being operated in accordance
with the requirements of any determination under section 32 of this Act.
(b) Any special purpose road (within the meaning of section 104 of this Act) that is under the control of the Department of Conservation; or
(c) Any registered service of any operator in relation to any 2-month period that follows—
(ii) The withdrawal of any other operator from the provision of the same or a similar service; or
(e) Any expenditure that is necessary for the immediate
or temporary repair of damage caused by a sudden and unexpected event.
(6) In the case of an output referred to in section 3D of this Act that is not an output in respect of a passenger service, the output shall be subject to the competitive pricing procedure for the time being determined by the Board as being appropriate in the circumstances.
28. Special provisions relating to in-house professional services—
(b) Nothing in section 27 of this Act shall be read as
requiring the price of any in-house professional services to be determined
by a competitive pricing procedure.
(3) Before performing, by using its own employees and in-house resources, any in- use professional services funded in whole or in part from its Land Transport Disbursement Account, the territorial authority shall give due consideration to the advantages and disadvantages of contracting out those services to any person or organization.
(4) Without limiting subsection (3) of this section, due consideration under that subsection requires due consideration of—
(b) The desirability for work to be properly specified and monitored; and
(c) The desirability of transferring risk and accountability; and
(d) The cost effectiveness of each option; and
(e) The benefits of ensuring contestability of services; and
(f) The availability of resources to undertake the work; and
(g) Any other matters determined for the purpose by the
Board after consultation with the Audit Office and territorial authorities
(or any person or organization representing territorial authorities) and
notified by the Board to territorial authorities.
(b) The local authority ensures that during the 1997 financial year it makes payments in respect of minor and ancillary works that—
(ii) Total not less than one-third of the total amount of payments made by it in respect of minor and ancillary works from its Land Transport Disbursement Account during the 1996 financial year.
(b) The local authority ensures that during the 1998 financial year it makes payments in respect of minor and ancillary works that—
(ii) Total not less than two-thirds of the total amount of payments
made by it in respect of minor and ancillary works from its Land Transport
Disbursement Account during the 1997 financial year.
Every payment in respect of minor and ancillary works that has been made by a local authority from its Land Transport Disbursement Account under a legally enforceable written contract—
(b) Shall, if the contract was signed on or after the 13th day of May 1994 but before the commencement of this section, and the payment is made before the 30th day of June 1999, be deemed for the purposes of sections 27 and 29 of this Act to have been made in accordance with the provisions of section 27 of this Act.
If a local authority uses in any year its own staff or assets in providing in-house professional services, or performing minor and ancillary works, for which payments are made from its Land Transport Disbursement Account, the local authority shall report on those services and works in accordance with the requirements of any determination under section 32 of this Act in the local authority's annual report and audited financial statements under sections 223D and 223E of the Local Government Act 1974.
32. Determinations by Minister—
The Minister may from time to time, after consultation with the Board, by notice in writing—
(b) Determine the requirements for the formation and operation of business units of local authorities to which payments may be made under section 27 (5) of this Act for minor and ancillary works; and
(c) Determine the requirements for reporting under section 31 of this Act by a local authority in its annual report and audited financial statements on—
(ii) The provision of minor and ancillary works,—
(d) Vary or revoke those requirements.
(2) The Authority and a local authority shall promptly satisfy any requirement of the Board under subsection (1) of this section.
(3) Subsections (1) and (2) of this section do not limit the provisions
of section 108 of this Act.
Notwithstanding anything to the contrary in this Act, the Board, after consultation with the Authority or the local authority concerned, as the case may be, may refuse or withhold any payments or part of any payment to the Authority, or the local authority, for any approved output or capital project that has been constructed or undertaken or is proposed to be constructed or undertaken to standards that in the opinion of the Board are excessively high or unsatisfactory.
Cf. 1989, No. 75, s. 21
36. Certain payments prohibited—
Payments for an output referred to in section 3D of this Act may be made to any regional council or to any territorial authority that has any functions, duties, or powers of both a regional council and a territorial authority, but such payments shall not be made to any other person or body.
National Roading Programme
42A. National roading programme—
(b)The proposed funding of those outputs and capital projects
for that financial year.
(3) The national roading programme shall not be inconsistent with any national land transport strategy that is in force at the time of the preparation of the programme.
(4) The Board shall ensure that only outputs and capital projects that are not inconsistent with any relevant regional transport strategy are included in a national roading programme.
(5) In complying with the requirements of this section, the Board shall have regard to the State highways programme, the regional programmes, and district roading programmes, that have been forwarded to it under this Act but shall not be bound to adopt in whole or in part any outputs or capital projects recommended in such programmes.
(6) The Board shall forward to the Authority, the Land Transport Safety Authority, the Commissioner, the Secretary, and every local authority a copy of each national roading programme approved by it.