However, we cannot rest on these successes. The Government has carried out extensive consultation on roads since 1994 and it is clear that:

• Changes in our society and economy mean our road system is under pressure. The growth of our big cities has led to congestion. Developments in dairying, forestry and tourism mean that many rural roads are also under pressure;
• Our roads are not as safe as they could be - safety should be a key feature in their design and operation to reduce the human and financial costs of crashes;
• Environmental costs associated with our roads and their use are too high - including air, water and noise pollution, as well as the impact of roads on the landscape;
• 75 different entities managing our roads is too many for a country of New Zealand's size and population;
• We need a system where people are given a clear understanding of the costs of their road use, and that is smarter at deciding where new investment should go. A system that results in our resources being used very wisely;
• Lowering the benefit cost ratio required for a road project to be funded by Transfund, and spending more money on roads, would add costs to our total economy, including our exports, but would not ensure the most beneficial projects proceed;
• Approximately $400 million raised by petrol tax goes to roads, another $600 million is used as general revenue to help fund areas like health and education. That cannot be used for roads unless Government finds the money from somewhere else; and
• If we wait, the problems will get worse, and the costs of changing will increase. If we act now, the changes can be managed in a gradual process without creating major upheaval. Taking the easy decision today, of doing nothing, means that only hard options will be available in the future.

BETTER TRANSPORT BETTER ROADS

The Government believes the proposal outlined in Better Transport Better Roads addresses the issues, and a range of others that consultation has shown New Zealanders think are important. We propose a simpler, commercially focused system of road management, involving fewer, specialised organisations that are more directly responsive to users' needs. Rates would cease to be a source of funding for roads. Over time, users would be able to choose how they paid for the roads they want and they would be able to join together to negotiate better deals.

The system would be commercial, and encourage innovation and efficiency. There would also be a number of important safeguards to protect the interests of the public:

• The roads we have would not be privatised;
• Communities would have an input into decisions;
• We would retain the roads we currently have;
• The access rights of motorists, pedestrians and cyclists would be unchanged;
• People's privacy would be protected;
• Utilities would continue to use road-ways; and
• Charging for roads would be sensibly constrained.

In addition, the new system would allow environmental costs to be better reflected in investment decisions and the way roads are used and managed. A new national safety regime would reduce road crashes.

Although there has been extensive consultation on roads, the current proposal is a major development. In addition, the recent local body elections have resulted in a significant change in the composition of a very important group of stakeholders in roads.

For these reasons, and because roads are so important, the Government has decided to hold a further round of consultation on the proposed changes. We seek feedback on the overall design of the new arrangements. In addition, feedback is sought on the technical issues on which it was not easy to determine the best policy option. Extensive consideration was given to: the ownership of land under state highways; the form that land title road companies should have; what should happen to land under new roads; the appropriate means to regulate prices; and the transition path to the new structures. The documents released with the proposal provide greater detail.

To facilitate discussion, and help build a broader understanding of the problems faced and the solutions proposed, the Government has released the following information:

• Better Transport Better Roads;
• A draft Roads Bill to implement the proposal;
• The Cabinet Papers which deal with road funding and management; and
• A set of associated documents dealing with information disclosure, pricing principles, Corridor Management Agreements, and safety management systems.

The Government invites submissions on the proposal. Submissions and requests for supporting documents should be made to:

Better Transport Better Roads
Ministry of Transport
PO Box 3175
WELLINGTON

The deadline for submissions is 30 April 1999.

• BETTER TRANSPORT BETTER ROADS