Joint Nelson
Tasman Regional Transport Committee Agenda – 10 March 2025
7 Reports
7.1
New Zealand Transport
Agency Consultation on Speeds in Nelson/Tasman
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Report
To:
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Joint
Nelson Tasman Regional Transport Committee
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Meeting
Date:
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10
March 2025
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Report
Author:
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Lyndon
Hammond, Team Leader -Transport Activity Management, Nelson City Council;
Dwayne Fletcher, Strategic Policy Manager
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Report
Authorisers:
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John
Ridd, Group Manager - Service and Strategy
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Report
Number:
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RNTRTC25-03-3
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1.1 To
agree that the Joint Nelson Tasman Regional Transport Committee make a
submission to the New Zealand Transport Agency (NZTA) on the reversal of State
Highway speed limits and approve the key points to be made in that submission.
2.1 The
Government introduced the new Setting of Speed Limits Rule 2024 (the Rule) in
September 2024. The Rule requires the reversal of some permanent speed limit
reductions made after 1 January 2020 by setting the same permanent speed limits
as the ones previously in force on 31 December 2019.
2.2 In
some instances, NZTA may keep a lower speed limit if it is satisfied there is
public acceptance for doing so.
2.3 NZTA
is currently consulting on the SH6 Blenheim to Nelson speed limits to establish
if there is public acceptance of the current limits with consultation closing
on 13 March 2025.
2.4 In
Nelson there are several sections of impacted State Highway between Atawhai and
the boundary at the top of the Rai Saddle on SH6 with SH6 being a key transport
route into Nelson and Tasman.
2.5 Nelson
City Council supports the current 60 km/h speed limit on SH6 at Atawhai.
2.6 In
Tasman the only impacted State Highway section is north of Wakefield on SH6.
That section would increase from 60 km/h to 70 km/h.
2.7 Tasman
District Council is comfortable with the current speed limits as it feels they strike
a good balance between safety and efficiency.
That the Joint Nelson Tasman Regional
Transport Committee
1. receives
the New Zealand Transport Agency Consultation on Speeds in Nelson/Tasman report
RNTRTC25-03-3; and
2. agrees
that the Joint Regional Transport Committee make a submission on State Highway
6 (SH6) speed limits; and
3. endorses
officers developing a submission stating:
(a) the
State Highway 6 speed limits between Blenheim and Nelson were installed to
address a crash problem and since their introduction there has been a reduction
in crash numbers and severity; and
(b) if or
when feedback is sought on the sections of State Highway 6 at Atawhai and north
of Wakefield, the key points to be provided are:
i. Nelson
City Council supports the current 60 km/h speed limit at Atawhai.
ii. Tasman
District Council is comfortable with the current 60 km/h at Wakefield as it
strikes a good balance between safety and efficiency; and
4. delegates
the final review and signing of the submission on State Highway 6 speed limits
to the Chair and Deputy Chair of the Joint Nelson Tasman Regional Transport
Committee.
4. Background
and Discussion
4.1 The
government introduced the new Setting of Speed Limits Rule 2024 (the Rule) last
year, setting out how speed limits on New Zealand roads will be managed in a
way that supports economic growth, boosts productivity, and enables people to
get to where they are going efficiently and safely.
4.2 The Rule introduces
several key changes in the way speed limits are set. It also automatically
reverses some speed limits that were lowered since 1 January 2020 on several
‘categories’ of roads. For two of these categories (state highway
interregional connectors and rural connectors), the Rule allows lower limits to
remain if the NZTA is satisfied there is public acceptance for retaining them.
4.3 The
NZTA is currently consulting with the community on several sections of road
between Nelson and Marlborough which had their speeds lowered in December 2020.
If there is public acceptance of the lower limits then they may be retained.
4.4 A section of SH6 at
Atawhai that is currently 60km/h will have an automatic speed reversal to
80km/h. While the Rule’s requirements are that this type of
‘urban connector’ must automatically be reversed without
consultation, the Minister has indicated that he is interested in public
feedback on the reversal of this speed limit.
4.5 In
Wakefield a section of SH60 north of the town that is currently 60km/h will
have an automatic speed reversal to 70km/h. While the Rule’s
requirements are that this type of ‘urban connector’ must
automatically be reversed without consultation the Minister has indicated that
he is interested in public feedback on the reversal of this speed limit.
4.6 Consultation
on the speed limit reversal on SH6 between Nelson and Blenheim (except the
section at Atawhai) closes on 13 March 2025.
4.7 At
the time of writing there was no information how or when feedback could be
provided on the sections at Atawhai and north of Wakefield which are scheduled
for automatic reversal. There may be limited time to provide feedback on
these sections. Staff are therefore seeking the Committee’s
endorsement for submission points outlined below.
Crash data
4.8 Reported
crash data for the sections of State Highway involved are as follows:
4.8.1 for
the section north of Wakefield, there were two reported crashes in 2018 (one
minor and one non-injury). There have been no injury crashes reported since the
speed limit reduction.
4.8.2 For
the section of SH6 from Haven Road to the Nelson boundary:
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Fatal
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Serious
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Minor
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Non-injury
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2017-2020
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4
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19
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54
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139
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2021-2024
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0
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6
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34
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92
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4.9 The
NZTA is seeking feedback via a website survey for the section it is consulting
on between Nelson and Blenheim. We consider the key point to be provided
is:
4.9.1 The
SH6 speed limits between Blenheim and Nelson were installed to address a crash
problem and since their introduction there has been a reduction in crash
numbers and severity.
4.10 If
or when feedback is sought on the sections of SH6 at Atawhai and north of
Wakefield, the key points to be provided are:
4.10.1 Nelson
City Council supports the current 60 km/h speed limit at Atawhai.
4.10.2 Tasman
District Council is comfortable with the current 60 km/h at Wakefield as it
strikes a good balance between safety and efficiency.
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Option
1: Make a submission to NZTA
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Advantages
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· The local views
on proposed speed limit changes in our areas are provided.
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Risks and Disadvantages
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· The short
timeframe and turn around makes it difficult to provide a consensus view.
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Option 2: Don’t make a
submission
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Advantages
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· The risk posed
by developing and coordinating a submission of a subject where a range of
views exist is removed.
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Risks and Disadvantages
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· The local views
on the proposed speed limit changes are not provided to NZTA resulting in an
unfavourable outcome.
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6.1 Staff will
develop a submission which will then be reviewed by the Chair and the Deputy
Chair of the JNTRTC.
7. Important
considerations for decision-making
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7.1 Fit
with Purpose of Local Government
Speed
limits can have an impact on the well-being of local communities.
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7.2 Consistency
with Community Outcomes and Council Policy
The
retaining of the lower speed limits set after 1 January 2020 is consistent
with the direction of the Joint Councils Speed Management Plan.
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7.3 Risk
There is a risk that the Councils’ views are not heard in the
NZTA consultation phase if a submission is not submitted.
There is also a risk that whatever is submitted is not considered by
some as a reflection of community’s views.
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7.4 Financial
impact
This
decision has no direct funding impact on either council.
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7.5 Degree
of significance and level of engagement
This matter is of low
significance because we are providing feedback into an external
organisation’s consultation process.
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7.6 Climate
Impact
Lower vehicle operating speed may result in lower emissions.
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7.7 Inclusion
of Māori in the decision-making process
No engagement with Māori
has been undertaken in preparing this report.
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7.8 Delegations
The Joint
Regional Transport Committee may approve submissions to external bodies on
policy documents likely to influence the content of the Joint Regional Land
Transport Plan.
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Nil
Joint Nelson
Tasman Regional Transport Committee Agenda – 10 March 2025
7.2 Public Transport Review and Private Share
Options - updated
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Report
To:
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Joint
Nelson Tasman Regional Transport Committee
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Meeting
Date:
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10
March 2025
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Report
Author:
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James
Hills, Senior Transport Planner, Nelson City Council; Jane Murray,
Transportation Planning Advisor
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Report
Authorisers:
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Dwayne
Fletcher, Strategic Policy Manager; John Ridd, Group Manager - Service and
Strategy
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Report
Number:
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RNTRTC25-03-6
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1.1 This
report provides an overview of key public transport matters including analysis
of the topics to be discussed with the Joint Nelson Tasman Regional Transport
Committee (JNTRTC) at the 10 March workshop. The topics to be discussed are:
· Public transport
review
· Fare review
· Private share
expectations.
1.2 The
report seeks endorsement for fare increases and private share targets.
2.1 As
part of the new eBus service a 12 month public transport operational review was
required and is a condition precedent to New Zealand Transport Agency Waka
Kotahi (NZTA) funding for the 2025/26 and 2026/27 financial years. NZTA
confirmed that it is satisfied that Nelson City Council (NCC) and Tasman
District Council (TDC) have met the conditions of the Phase 1 review in
December 2024 and has approved the release of funding for years two and three
of the programme.
2.2 NCC
and TDC have now commenced Phase 2 of the Bus Review, that being to develop
short-term, mid-term and long-term measures to grow patronage and optimise the
service.
2.3 As
part of Phase 2, NCC and TDC are assessing the existing eBus fare structure and
analysing the impacts on the services of fare increases.
2.4 In
addition, outside of the public transport review, NZTA through its development
guidelines for developing regional public transport plans, outlines that public
transport authorities must undertake annual pricing reviews and six-yearly fare
structure reviews.
2.5 Furthermore,
in November 2024, the Minister of Transport released increased private share
expectations for each Public Transport Authority (PTA) to work towards. This
expectation outlined for NCC and TDC to work with NZTA to agree private share
targets and work towards achieving these targets over the next three year
period.
2.6 Reviewing
public transport fares and increasing fare revenue is one of a number of
mechanisms that can increase private share.
2.7 Therefore,
this report combines and considers the context of the existing public transport
review, private share expectations and annual PTA fare review.
2.8 The
eBus service is still very early in its operation so care needs to be taken in
implementing any dramatic changes before it is properly bedded in and being
fully utilised by the community. Small changes in things like service
reliability can result in significant increases in patronage while on the other
side of the coin, increases in fares would be expected to reduce patronage
potential. Additionally, the bus review is still underway, so a suite of
recommended changes is expected to come out of that later this year.
2.9 The
following changes are therefore recommended by staff of Nelson City Council and
Tasman District Council:
· eBus
fares for the BeeCard be increased by CPI for the 2025/26 financial year; and
· the
JNTRTC endorse the private share targets in figure 3 below on the understanding
that they will be reviewed with NZTA as additional eBus usage data becomes
available over time.
That the Joint
Nelson Tasman Regional Transport Committee
1. receives
the Public Transport Review and Private Share Options – updated report RNTRTC25-03-6;
and
2. agrees
eBus fares be increased by consumer price index (CPI) for the 2025/26 financial
year, effective from 1 July 2025; and
3. endorses
the following private share targets:
4. notes
that private share targets will be reviewed with the New Zealand Transport
Agency as additional eBus usage data becomes available over time.
4. Background
and Discussion
Public transport review update
4.1 Phase
two of the bus review has focused on understanding operational issues with
buses in terms of patronage levels, late services, as informed by feedback from
the public and operators. There have been over 1,775 comments from the public
through service requests, and submissions on the Regional Public Transport
Plan, Regional Land Transport Plan, Long Term Plans and Shape Nelson/Tasman.
Many comments related to the initial bus rollout. Officers have categorised
this feedback into themes to identify specific areas where optimisations and
improvements can be made.
4.2 Officers
have developed a suite of measures and identified efficiencies to improve the
eBus service and grow patronage. These measures are broken down by route and
split across:
· short term:
2025–2026;
· medium term:
2027–2030; and
· long term: 2030
onwards.
4.3 Measures
have been developed that considers funding availability, customer satisfaction
and the wider public transport context e.g. private share expectations.
4.4 These
measures will be outlined to the JNTRTC members at a workshop on 10 March, and
are to be adopted by the JNTRTC later in 2025, before being implemented.
Existing eBus fares and the New Zealand context
5.1 The
eBus service launched in August 2023 with a new lower fare structure than the
NBus service it replaced. A one-way adult fare between Nelson and Richmond
reduced from $2.80 (NBus) to $2.00 (eBus) (now $2.10) with the launch of the
new service (if paying with a Bee Card).
5.2 Government
subsidies for half-price fares for under 25s and free fares for under 13s went
from 1 July 2023 until 1 May 2024. Since May 2024, children aged 5-12 pay a
half-price adult fare, and passengers aged 18-24 now pay an adult fare.
Children aged 13-18 saw no change and continue to pay a half-price adult fare.
5.3 Furthermore,
all Bee Card fares were increased by 5% in July 2024. Cash fares were not
altered.
5.4 A
summary of the existing eBus fare structure is provided in Table 1 below. Cash
fares are higher than Bee Card fares for the same journey, approximately
one-third of eBus passengers pay by cash.
5.5 Table
2 below provides fares for different PTAs across New Zealand. The fares
provided are adult fares and if paying with the respective public transport
payment card for that region, (eg. Bee Card). Auckland, Bay of Plenty
(Tauranga), Hawkes Bay, Invercargill and Marlborough (Picton-Blenheim) all
charge more for a 1 Zone fare. The remaining PTAs and routes charges less than
the eBus service for a 1 Zone fare.
5.6 The
PTAs above also offer cash fares starting at $3.00 with the exception of four
locations which have $4.00 fares (Auckland, Christchurch, Waikato and
Queenstown) and Tauranga ($3.40), Gisborne ($2.20) and Northland ($2.00).
5.7 The
average fare per boarding (GST exclusive) across 2023-2024 is provided in Figure
1 below. The figure also includes third-party revenue for boardings to
reflect where private fare substitutes may be leading to lower average fares.
5.8 The
figure is useful as it combines all fare types (including Super Gold and
concessions) and all lengths of journey to provide an average fare per
passenger.
5.9 The
eBus service across 2023-2024 had an average fare of $1.08. This is above the
$1.01 average of the Nelson-Tasman PTA cluster and puts the eBus service midway
in this cluster (fourth out of seventh, highest fare to lowest fare).
5.10 The
average fare of $1.08 is also higher than the average fare of the third cluster
of five PTAs, ($1.08 > $1.04). When comparing Nelson-Tasman with the cluster
of five PTAs, only Invercargill has a higher average fare ($1.17).
Fare structure and analysis
5.11 For
the purposes of this review, staff have looked at four fare scenarios for the
next financial year as follows:
· No fare increase;
· Fare increase of
CPI;
· Fare increase of
5%; and
· Fare increase of
10%.
5.12 Whilst
a fare increase of CPI could be justified based on the higher levels of
patronage in the initial months of the second year of eBus operation and a
stated desire from the JNTRTC to have regular smaller fare increases rather
than less frequent, more significant increases.
5.13 In
contrast, no fare increase could equally be justified on the basis that
patronage for the latest months of the second year of eBus operation looks to
be trending below that of the first year of operation. Figure 2 below shows
that while the patronage in August and September 2024 was higher than in the
same months in 2023, the trend is for the patronage in October 2024 to January
2025 to be the same or less than the equivalent months in the previous 12
months. This reduction is occurring even though the population of Nelson and
Tasman is projected to be increasing indicating that there are other factors
influencing people’s decision making when it comes to choosing a
transport mode.
5.14 Fares
are a key factor that influence demand for public transport. Research in
Australasia estimates that for every 10% that fares are increased above CPI,
there will be a corresponding 4% reduction in patronage.
5.15 Theoretically,
a fare increase equal to CPI change would not be expected to influence
patronage. CPI has been measured to be approximately 2.2% for the calendar year
ending December 2024. The next update to this will be available in April 2025.
5.16 A
5% increase in fares equates to an 2.7% increase above projected CPI. This
would be expected to contribute 1% to any decrease in patronage.
5.17 A
10% increase in fares equates to an 7.8% increase above projected CPI. This
would be expected to contribute 3% to any decrease in patronage.
5.18 It
is important to note that any increase above CPI would need to be endorsed by
the JNTRTC before going to the Joint Council for final approval.
6.1 Private
share describes the cost split between those using the bus and any subsidy of
the public transport system. There are multiple mechanisms for influencing
private share including increasing patronage, increasing commercial revenue
such as advertising, improving operating efficiency, and increasing fares. All
of these mechanisms, and more, are part of the public transport stage two
review that is underway currently with a particular focus on increasing
patronage by improving the timing and reliability of the service. The remainder
of this section highlights the effect of increasing fares in response to
previous interest by members of this committee but is not intended to suggest
that this is the preferred, or only, approach for increasing private share.
6.2 The
private share for the eBus in 2023/24 financial year was 11.1%.
6.3 Staff
conversations with NZTA regarding the appropriate targets for private share
began in the last quarter of 2024. Initially, NZTA proposed a 2026/27 target of
around 30% on the basis that the private share proportion of the Nbus system
was much higher than the eBus and there had been strong increases in private
share proportion over the first year of eBus operation. There were two issues
with the NZTA analysis that overestimated the potential for private share as
follows:
· The NBus operated
as a much more “bare bones” service where the main focus was on
high frequency on routes 1 and 2 between Nelson and Richmond and much lower
frequency on other routes. The eBus system has a half hour frequency on all
routes as well as extending services out to Motueka and Wakefield.
· The private share
for the eBus increased significantly when the half price fare policy finished
at the end of April this year. There is no scope to dramatically change fares
in this way again in one sudden increase so future improvements to private
share should not be based on this level of growth.
6.4 As
a result of the issues identified above, staff undertook some basic analysis
that looked at the increase in fare income during the first nine months of eBus
operation and adjusted for the half price fare policy change. The resulting
recommendation to NZTA is that 17.5% private share in 2026/27 would be an
optimistic target. Figure 3 below shows the targets for each year.
6.5 As
with any modelled target, there are risks that they will not be met due to
changes in the real-life conditions. For the eBus, Figure 2 above shows that
the first-year growth in patronage seems to be dropping off which would require
fare increases or cuts in services much larger than originally planned and
which may in themselves further reduce patronage. Fortunately, NZTA have
committed to providing an opportunity for review of the private share target
for 2026/27 as further data becomes available for the eBus system.
Additionally, NZTA have indicated that there are no consequences to not meeting
the target private share.
6.6 To
give an idea of the effect various changes to the eBus system would have on
private share, the following scenarios have been prepared for the 2025/26
financial year:
· fare increase of
CPI and no increase in base patronage: Increase in private share in the order
of 0.3%;
· fare increase of
5% and no increase in base patronage: Increase in private share in the order of
0.5%; and
· fare increase of
10% and no increase in base patronage: Increase in private share in the order
of 0.9%
6.7 The scenarios above illustrate that
fare income at the levels currently collected does not influence the private
share significantly. Even at 100% fare increases, private share only increases
by just over 2%. This highlights that for there to be significant change in the
private share, there needs to be a significant increase in patronage along with
the fare increases if services are not cut.
6.8 The
network optimisations that were highlighted in the workshop are expected to
increase patronage. It is difficult to estimate the extent these will affect
patronage levels and private share and continual monitoring will be required.
Consideration will need to be given to other network adjustments should the
targets not be met in future years. Options for achieving higher private share
targets are limited and include increasing advertising or sponsorship, higher
fares or a reduction of services.
7. Important
considerations for decision-making
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7.1 Fit
with Purpose of Local Government
Providing
and giving effect to Regional Land Transport Plan and Regional Public
Transport Plan is a requirement of the Land Transport Management Act 2003.
Also consider:
NZTA
Waka Kotahi through their development guidelines for developing regional
public transport plans, outline that public transport authorities must
undertake annual pricing reviews and six-yearly fare structure reviews.
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7.2 Consistency
with Community Outcomes and Council Policy
Councils
have adopted a joint Regional Land Transport Plan and joint Regional Public
Transport Plan as a requirement of the Land Transport Management Act 2003.
The development and operation of a public transport service contributes to
the community outcome “our infrastructure is efficient, cost effective
and meets current and future needs”.
Through
the Public Transport Review, transport officers have developed a number of
measures to optimise the eBus service and grow patronage with the resources
available.
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7.3
Risk
There are
multiple risks associated with decisions to alter the eBus fares.
Decision to keep existing fares:
Keeping existing fares limits the amount of fare revenue gained which
could impact the ability to reach private share targets, and require higher
operational funding levels from both councils.
Decision to raise fares:
Raising fares:
• could lead to
a drop in patronage and a subsequent drop in fare revenue obtained. This
could impact the ability to reach private share targets and require higher
operational funding levels from both councils;
• could price
people away from public transport, reducing transport options for those
without cars;
• can encourage
mode shift to the private car; and
• can erode
confidence in the eBus service.
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7.4 Financial
impact
Any
decision made on the existing fare structure of the eBus service will have
direct impacts on the amount of fare revenue gained. Any decision will also
have direct impacts in the ability to meet private share targets.
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7.5 Degree
of significance and level of engagement
There have been over 1775
comments from the public through service requests, submissions on the
Regional Public Transport Plan, Regional Land Transport Plan, Long Term Plans
and Shape Nelson/Tasman.
Any decision to raise eBus
fares above CPI would be consulted on with the public as part of the Annual
Plan Process.
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7.6 Climate
Impact
Increasing patronage leads to mode shift away from the private car
which reduces the environmental impact of land transport and reduces
transport emissions. Greater public transport use also reduces congestion on
the local road network.
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7.7 Inclusion
of Māori in the decision-making process
No engagement with Māori
has been undertaken in preparing this report
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7.8 Delegations
The JNTRTC may approve and
propose a fare increases up to CPI. Any recommendation to increase fares
above CPI will need to be made to the Joint Council for approval.
Depending of the nature of the changes to public transport, these
will either be approved by the JNTRTC or via a JNTRTC recommendation to the
Joint Council.
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8. Conclusion
and Next Steps
8.1 Staff
will update the NZTA on whether or not the JNTRTC has endorsed the private
share targets.
Nil
