New Minister of Transport, new opportunities

If you follow politics, either at home or internationally, the last few weeks have proven somewhat of a bonanza.

The New Zealand election result – and to a lesser degree the US one – will have a far-reaching impact on our road transport industry. The brewing international impact of COVID-19 could materialise via economic shocks, which will undoubtedly surprise us in 2021. As such, it will be vital that a strong supply chain is understood and supported by government to ensure the security of freight to reach its destination.

Prime Minister Jacinda Ardern announced her new cabinet at the start of the week. The RTF is very relieved to see that the Green Party will have no role in transport. In fact, former Associate Minister Julie-Anne Genter will not have any ministerial responsibility in the new government.

Phil Twyford is no longer the Minister of Transport and the portfolio has been passed to Michael Wood, a first-time minister and MP for Mt Roskill in Auckland. Minister Wood has given an early indication that he has a pragmatic view about roading projects (such as being open minded on the construction of a new Mount Victoria tunnel in Wellington, which was previously opposed by the Green Party).

If we look at the state of the nation from the Government’s perspective, they have to build infrastructure fast, and that will have to include roads.

On behalf of the industry, we have been in contact with the new minister this week. In our briefing paper we have outlined the contribution of the road transport industry to the New Zealand economy. We have pointed out that trucks are a key part of meeting the freight task, even if you are keen on trains, as the government has indicated it is. The convenience of door to door delivery, the resilience offered by road transport and the time sensitivity around the need to deliver many goods continues to put road transport in pole position.

We want the Government to work more closely with our industry in recognition of the contribution operators make keeping our economy moving. We would like the Government to prioritise development of a freight strategy for New Zealand. Such a strategy would recognise the importance of the supply chain and how to keep it secure by setting high level principles to guide transport investment. We must build “freight literacy” among the public and decision-makers. Developing a strategy could be a start to achieving this. 

We also want to see more transparency about where the National Land Transport Fund is spent.

Industry operators (heavy vehicles) contribute almost a $1 billion per annum through Road User Charges. It is obvious this fund has been “dipped into” by the Government for things other than road building and maintenance. We can only speculate about how much money has gone into light rail, KiwiRail and of course those cycle lanes. Meanwhile, our highways and roads have become more dilapidated, which has led to increased costs for operators via repairs and maintenance.

We have requested partnership with the Government on our driver shortage challenges. The RTF surveyed a statistically significant proportion of our industry this year (over 600 operators) about their experiences of a shortage of drivers. The survey found that 37% of operators had at least one truck parked up due to not having enough drivers. The industry is taking the initiative by starting our traineeship Te ara ki tua Road to success, but we do need support from Government to assist us with important components such as a more fit-for-purpose licensing system to ensure we maximise success.

– Nick Leggett, CE, Road Transport Forum