11
BRIEFING
Green Transport Card Scheme Cabinet Paper and
Phasing Options
Reason for this To provide you with, and brief you on, a revised version of the Green Transport
briefing
Card scheme Cabinet Paper (the Cabinet Paper) for cross-party consultation.
To brief you on the outcomes of discussion at the Green Transport Card
Governance Group (the Governance Group) meeting on 31 July on phasing
options.
Action
Note a revised draft Cabinet Paper for the scheme is attached to this briefing.
required
Note the draft Cabinet Paper identifies two phasing options for councils that
are unable to fully implement the scheme by mid-2020.
Agree
to include the following recommended phasing options in the final
Cabinet Paper:
• Option 1: implement the scheme in their region in 2021.
• Option 2: partially implement the scheme in their region in 2020, if it is
necessary to address capacity concerns, and agree on when the
scheme will be fully implemented.
Note if you would like to meet with us to discuss any aspects of the Cabinet
Paper before it is finalised.
Agree
for us to draft a letter to councils, setting out Government’s intended
approach for the scheme, if Cabinet agrees to proceed with the scheme.
Note the Regulatory Impact Statement drafted for the scheme attached to this
briefing.
Deadline
We recommend that you consider this paper as soon as possible.
Reason for
The final Cabinet Paper will be lodged with DEV on 22 August 2019. Your
deadline
feedback is needed on the attached draft before it can be finalised.
Contact for telephone discussion (if required)
Name
Position
Telephone
First
contact
Acting Manager, Strategic Policy and Innovation
Senior Adviser, Strategic Policy and Innovation
Adviser, Strategic Policy and Innovation
Adviser, Strategic Policy and Innovation
9(2)(a)
MINISTER’S COMMENTS:
Date:
7 August 2019
Briefing number:
OC190720
Attention:
Hon Julie Anne Genter,
Security level:
In confidence
Associate Minister of Transport
CC Hon Phil Twyford,
Minister of Transport
Minister of Transport’s office actions
Noted
Seen
Approved
Needs change
Referred to
Withdrawn
Not seen by Minister
Overtaken by events
Page 2 of 8
Purpose of the briefing
1.
A revised Cabinet Paper for the Green Transport Card scheme (the scheme) is attached to
this paper, which is ready for cross-party consultation and further feedback from your office.
The cross-party consultation period will commence from 7 August 2019; the paper will be
lodged on 22 August 2019 for 28 August 2019 DEV.
2.
This briefing highlights substantive changes made to this Cabinet Paper since the previous
version, including options for phasing the scheme’s implementation. The Cabinet Paper’s
Regulatory Impact Assessment has also been attached. The Regulatory Quality Panel at
MoT has reviewed this Regulatory Impact Statement and considered that it meets the
Quality Assurance criteria.
3.
We also developed phasing options in collaboration with the Green Transport Card
Governance Group (the Governance Group); these options have also been reflected in the
Cabinet Paper.
The revised Cabinet Paper incorporates comments from your office and other agencies
4.
Agencies that provided feedback on the draft Cabinet Paper included the Treasury, the
Ministry of Social Development (MSD), the New Zealand Transport Agency (NZTA), the
Department of Internal Affairs (DIA), and the Ministry of Health (MoH). The Department of
Prime Minister and Cabinet were informed.
5.
NZTA, MSD, DIA and MoH expressed support for the scheme. While the Treasury supported
improving access to transport for low-income households, it considered that there was
insufficient evidence to support the scheme as the preferred solution.
6.
Substantive changes to the attached Cabinet Paper include:
• revising the cost estimates (including all CSC holders, except those with a SuperGold
card);
• clarifying why the scheme should primarily be funded by the Crown;
• adding a section with comments from other agencies;
• clarifying that the scheme would be voluntary for councils to join, and that it would
only apply to services specified in councils’ Regional Public Transport Plans
(RPTPs); and
• adding a section on phasing options.
The Cabinet Paper recommends phasing options for the scheme, if councils are unable to
implement the scheme in 2020
7.
The proposed scheme will be voluntary for councils to join.
Page 3 of 8
8.
Our original recommendation (OC190584 refers) was to set mid-2021 as the target date for
implementing the scheme. We still recommend setting mid-2021 as the target date for
implementation. This target would lead to stronger support from councils for the scheme, and
would provide councils with sufficient time to implement the scheme effectively.
9.
The revised Cabinet Paper indicates your intention to implement the scheme by mid-2020,
but identifies phasing options for councils that are unable to implement the scheme within
this timeframe.
10.
We developed and explored these phasing options with members of the Governance Group,
at a meeting on 31 July 2019.
11.
The Green Transport Card Governance Group meeting was attended by representatives
from Auckland Transport, Environment Canterbury, Local Government New Zealand,
Marlborough District Council, and Ministry officials. Greg Campbell, CEO of Greater
Wellington Regional Council, was also present at the meeting.
We developed and considered six phasing options with the members of the Governance
Group
12.
These options are summarised in the table below.
Phasing options
Description
Geographic
Some regions could proceed with the scheme first, while other regions
facing capacity challenges could proceed later.
Off-peak, on–peak
The 50 percent discount could be applied during off-peak hours first, while
on-peak discounts could be applied at a later date.
Percentage discount
A smaller discount (e.g. a 25 percent discount) could be applied first, while
the 50 percent discount could be introduced at a later date.
Modal
In regions such as Auckland and Wellington, we could consider applying
discounts to certain transport modes first (e.g. buses before trains).
Community Services Card
Some CSC holders (e.g. veterans) may receive the scheme first, although
holder
this option may be difficult to implement and justify.
A combination of the above
We may also consider different types of phasing for regions, given that
each region faces different challenges.
The Governance Group recommended “geographic phasing” as the most workable option
13.
The Governance Group indicated that regardless of which phasing option is chosen, the mid-
2020 implementation date would likely be the most achievable target for smaller councils,
such as Nelson and Marlborough.
14.
The Governance Group excluded “modal phasing”, and “CSC phasing” as viable options.
“Modal phasing” is unlikely to seriously address the capacity issues that councils may face
Page 4 of 8
as a result of additional patronage due to the green card. As for “CSC phasing”, the
Governance Group’s view was that it would be very difficult to distinguish which types of
CSC holders are “needier” and should receive the scheme first, and would be difficult to
justify.
15.
“Percentage discount” and “off-peak, on-peak” phasing are more workable for councils,
although they also come with implementation challenges. The key drawback of a
“percentage discount” phasing option is that councils may find it difficult to integrate new
discounts into their existing systems. “Off-peak, on-peak” phasing would miss a key objective
of the scheme, which is to enable CSC holders to access work opportunities during peak
hours.
We recommend giving councils that are unable to implement the scheme in mid-2020 two
options for phasing
16.
The attached Cabinet Paper signals that councils that are ready to implement the scheme
fully by mid-2020 should be expected to implement the scheme then. Councils that are not
ready to implement the scheme fully by mid-2020 could be offered two options:
•
Option 1: implement the scheme in their region in 2021.
•
Option 2: partially implement the scheme in their region in 2020 if it is necessary to
address capacity concerns, and agree on when the scheme will be fully implemented.
For example, a council could choose to offer a lower concession rate for CSC holders
initially, or limit concessions to off-peak travel only.
17.
These options are illustrated visually below.
Expectation for the scheme to be fully implemented in mid-2020
Councils that are ready to
Councils not ready to
implement the scheme in 2020:
implement the scheme in 2020:
expectation to fully implement the
one of the two options:
scheme by mid-2020.
Option 2:
Option 1:
Phased implementation (either
Fully implement the scheme by
“on-peak, off-peak” or
mid-2021.
“percentage discount phasing”.
Scheme implemented fully at a
later date.
Page 5 of 8
18.
This approach has been included in the attached draft Cabinet Paper. We are seeking your
direction on whether this will be included in the final Cabinet Paper.
If Cabinet agrees to proceed with the scheme, we recommend you sending a letter to
councils outlining your expectations for the scheme
19.
In this letter, we recommend outlining how funding agreements will be negotiated and other
key steps towards implementation.
20.
We recommend that you do not give a specific date on the delivery timing of the scheme. We
propose that you signal the implementation of the scheme sometime in 2020, without giving
a specific month. Our advice is that signalling a precise month at this stage could create
strong expectations (from the public and other stakeholders) on the expected delivery date of
the scheme.
Your office will finalise the draft Cabinet Paper, through the cross-party consultation
process, with our support
21.
We will support your office on revising the Cabinet Paper during cross-party consultation,
which begins tomorrow (8 August 2019). The Cabinet Paper will need to be lodged on 22
August 2019, enabling the Cabinet Paper to be considered by Cabinet on 28 August 2019
DEV.
22.
Should Cabinet decide to proceed with the scheme, we will help to draft the letter to councils,
and work with other agencies and councils to begin the scheme’s establishment phase.
23.
We will also be working on drawing up an implementation plan for the scheme up to the
middle of next year. This plan will include key milestones such as negotiating individual
funding agreements with councils, working with MSD on existing systems, and other key
steps.
Recommendations
24.
The recommendations are that you:
(a)
Note a revised draft Cabinet Paper for the scheme is attached to this
Yes/No
briefing.
(b)
Note the draft Cabinet Paper identifies the following phasing options for
Yes/No
councils that are unable to fully implement the scheme by mid-2020:
• Option 1: implement the scheme in their region in 2021.
• Option 2: partially implement the scheme in their region in 2020 if it
is necessary to address capacity concerns, and agree on when the
scheme will be fully implemented
Page 6 of 8
(c)
Agree to include the recommended phasing options in the final Cabinet
Yes/No
Paper
(d)
Note if you would like to meet with us to discuss any aspects of the Cabinet Yes/No
Paper before it is finalised.
(e)
Agree for us to draft a letter to councils, setting out Government’s intended
Yes/No
approach for the scheme, if Cabinet agrees to proceed with the scheme.
(f)
Note the Regulatory Impact Statement drafted for the scheme attached to
Yes/No
this briefing.
Acting Manager, Strategic Policy & Innovation
MINISTER’S SIGNATURE
DATE:
Page 7 of 8
Appendix 1: Green Transport Card Investigation Findings Cabinet Paper for cross-party
consultation
Page 8 of 8
Document Outline
