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Land Transport—Travel Time Costings

Wednesday 21 March 2007 Hansard source (external site)

Fitzsimons2. JEANETTE FITZSIMONS (Co-Leader—Green) Link to this
to the Minister of Transport

Why is the time of a person driving a car to work in congested traffic ($10.95 an hour) valued by Land Transport New Zealand at more than double the time of a person sitting on a bus or train travelling to work ($4.70 an hour); and is this an indication that this Government thinks that public transport is only for people of lesser value?

KingHon ANNETTE KING (Minister of Transport) Link to this

These values are not set by Land Transport New Zealand; I am advised that they are set by New Zealanders themselves. Land Transport New Zealand collected the data from surveys carried out on car, bus, and train passengers that asked what value they placed on work and non-work travel time. I understand that these results are consistent with international findings. The massive increase in public transport investment made by this Government demonstrates that we do not place a lesser value on public transport passengers. Further, the value of travel time is only one factor considered in the assessment of whether a transport project will be funded.

FitzsimonsJeanette Fitzsimons Link to this

Does this discriminatory time valuation that Land Transport New Zealand requires to be used in all economic valuations applying for funding send the message that higher-income commuters are expected to drive to work, unlike in successful European cities where professional and managerial workers routinely travel by train because their Governments invest in high-quality public transport services?

KingHon ANNETTE KING Link to this

No, I disagree with the member. This Government has shown we have a commitment to investing in public transport, and I am sure that member will acknowledge that her party has had some input into that. However, I would think that when people put a value on their travel time, it may be that people on buses and trains believe they can use their time more valuably because they are not driving.

SoperLesley Soper Link to this

By how much has the Government increased public transport investment?

KingHon ANNETTE KING Link to this

We recognise that building more roads is only part of the solution, and therefore the Government has invested in public transport. For example, we have brought back the national train network—

WilliamsonHon Maurice Williamson Link to this

Buses run on roads.

KingHon ANNETTE KING Link to this

That is something that member did not do—his Government sold it off. Public transport was capped under a National Government at around $40 million a year. This year the Labour Government is forecast to spend $450 million. In fact, we intend to spend $1.9 billion in public transport over the next 5 years. That is an unprecedented level of expenditure.

BrownPeter Brown Link to this

What is the estimated cost of road congestion to the New Zealand economy; and is it significant enough that our roading issues and problems need to be addressed in a reasonable time frame, particularly as the Rugby World Cup is coming to this country in 2011?

KingHon ANNETTE KING Link to this

I do not have the actual cost at my fingertips, but we know that congestion is a cost, particularly in cities like Auckland, and over in the Bay of Plenty where the member comes from. Congestion is growing in Auckland because of many years in the 1990s when no investment was made in roads and public transport. I am pleased that this Government has rectified that problem. We are filling the backlog and moving forward, in terms of additional funding, to address those issues.

SmithHon Dr Nick Smith Link to this

Slowly. It’s getting worse.

KingHon ANNETTE KING Link to this

If anyone wants to take the blame for those issues, the carping member from Nelson, Dr Nick Smith, ought to put his hand up.

FitzsimonsJeanette Fitzsimons Link to this

Will the Minister undertake to investigate the distorting effect that this valuation will have on decisions to allocate the funding package for the Wellington western corridor, where those rules would overvalue the benefits from Transmission Gully or widening the coast road, and severely undervalue the benefit of increasing the capacity, reliability, and speed of the rail system?

KingHon ANNETTE KING Link to this

Oh that I could! If the member is one of those who believe in local people having a say locally, the member would be aware that in the Wellington region the Wellington regional authorities have placed Transmission Gully as a very high priority for the region. Those views have to be taken account of when the regional land transport programme is drawn up.

CullenHon Dr Michael Cullen Link to this

Is the Minister aware of any other developed country that, in order to promote public transport, has deliberately adopted a policy of maintaining congested and unsafe roads?

FitzsimonsJeanette Fitzsimons Link to this

If this valuation is supposed to reflect pay rates for different classes of worker, why does it also value the time of public transport passengers, cyclists, and pedestrians at less than half the value of the time of motorists, even when they are neither at work nor going to work, but are parents taking their kids to the doctor, people involved in voluntary community work, or are people just going to the supermarket; and are we now living in a society that measures people’s worth by what they are paid?

KingHon ANNETTE KING Link to this

On the last part of that question, there are some people who measure the value of people’s work by what they are paid—it is not something I believe in. But I need to point out also, as I did in my original answer, these are the values New Zealanders themselves place on their transport time.

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