What we take into account
We take a range of considerations into account when assessing whether or not to fund particular transport activities.
We need to ensure that the activities proposed give effect to:
- the Government policy statement on land transport funding (GPS) (external link) - this statement sets out the government's priorities for investment in the land transport system in the three-year period of the NLTP
and take account of:
- regional land transport programmes - developed every three years by regional transport committees to set out the transport activities for which the committees will seek funding. The regional programmes must be consistent with:
- the GPS (external link)
- regional land transport strategies developed by regional transport committees to provide a 30-year planning framework
- our national activities, eg state highways
- long-term council community plans (LTCCPs) developed by district, city and regional councils.
and take account of:
We also assess whether activities:
- help to meet the short-term and/or medium-term impacts identified in the GPS
- contribute to the Land Transport Management Act 2003 (LTMA) objectives
- have been assessed against other options and alternatives
- comply with LTMA consultation requirements.
Our assessment criteria
We use assessment criteria to determine if proposed activities are eligible for funding and their priority. The criteria are:
Strategic fit
We consider whether proposals:
- fit with our strategic direction (as set out in the Investment and Revenue Strategy)
- address significant national or regional issues.
Effectiveness
We consider how well proposals contribute to a particular strategic objective.
Proposals achieving long-term, integrated and enduring solutions rate highest.
Economic efficiency
We consider whether proposals:
- use resources efficiently
- offer long-lasting benefits.
Economic efficiency is assessed according to:
- the benefit-cost ratio (BCR) for proposals that add new or improved infrastructure or services
- cost effectiveness - for ongoing maintenance, operations and public transport services.
Assessing proposals
For each proposed activity we apply a rating of high (H), medium (M) or low (L) against each category. For example, an activity assessed as 'HMM' is rated 'high' for strategic fit, 'medium' for effectiveness and 'medium' for economic efficiency.
Economic efficiency applies only to activities that result in the delivery of transport infrastructure or services (not to studies), strategies or plan development.
We sometimes take other factors into account that are not captured by the assessment criteria.
Have your say on what gets funded
Find out how you can have input to proposed transport activities.
