Lack Of Freight Data Will Hinder Growth, Productivity
The Ministry of Transport has decided not to proceed with a new iteration of the National Freight Demand Study, despite having already sunk $164,000 on external advice relating to the project.
Previous Demand Studies looked at total changes in freight movement by mode (road, rail and coastal shipping), commodities transported, and the origin and destination of freight across different regions, and freight forecasts.
This included the insight that in tonnage terms, road freight accounted for 92.8% of the freight task, with rail and coastal shipping at 5.6% and 1.6% respectively as at 2017/2018.
Transporting New Zealand Chief Executive Dom Kalasih said that the cancellation of the project came at a critical time for New Zealand's supply chain and transport system.
"At a time when we're seeing reduced freight capacity across the Cook Strait, serious international trade uncertainty, falling rail volumes, and huge pressure on the National Land Transport Fund, we need to be making well-evidenced investment decisions."
"The Government is not going to meet its goal of doubling the value of exports in 10 years if they don't have a productive multi-modal supply chain to move freight across the country."
"With increasing pressure on the National Land Transport Fund, the Government needs to be targeting transport investment to where it will be most effective."
Kalasih says while he understands there is pressure on the Ministry of Transport to make operational savings, he says that poorly evidenced transport investments will cost the Government far more than any costs of the National Freight Demand Study.
"Transporting New Zealand has consistently emphasised the importance of good quality freight data when we meet with the Ministry of Transport. We highlighted the importance of an updated National Freight Demand Study in particular."
"We've raised our concerns directly with the Ministry, and hope that the decision will be urgently reconsidered."
About Ia Ara Aotearoa Transporting New Zealand:
Ia Ara Aotearoa Transporting New Zealand is the peak national membership association representing the road freight transport industry. Our members operate urban, rural and inter- regional commercial freight transport services throughout the country.
Road is the dominant freight mode in New Zealand, transporting 92.8% of the freight task on a tonnage basis, and 75.1% on a tonne-km basis. The road freight transport industry employs over 34,000 people across more than 4700 businesses, with an annual turnover of $6 billion.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scoop
9 minutes ago
- Scoop
Jobs Programme Funding Cut Confirmed
Two North Canterbury councils now have significantly less funding to support local youth into jobs. The Hurunui and Kaikōura district councils will receive just $130,000 and $100,000 respectively over the next 12 months to fund their successful Mayors' Taskforce for Jobs (MTFJ) programmes, a youth employment scheme. The Government is targeting getting young people off a jobseekers' benefit, which has led to the Ministry of Social Development changing its funding criteria for the MTFJ programme. It now means instead of helping school leavers, the new programmes will be primarily supporting those on a jobseekers' benefit. Hurunui Mayor Marie Black said her council's new target is to place 15 young people into sustainable employment, with the new measure meaning they need to be in the job for at least six months instead of three months. Despite a significant funding cut, Mrs Black said she is confident her team will surpass the new target and achieve other goals. But she admits she is disappointed at the changes to the scheme. ''There is a bit of a trend. A lot of 16-year-olds are leaving school and some are ready for work and others need a lot more support and we can't let those young people down. ''The MTFJ programme has really reached into the community. Our schools understand it and our wonderful employers understand it and people reach out to see if there's a way to help, and it's important we keep that strength. ''The part that saddens me the most is the scheme was put in place to support rural job seekers who were disadvantaged by distance, but because it has been successful our larger neighbours have taken it up. ''But we won't lose sight of the purpose of the scheme.'' To ensure young school leavers are not left behind, the Hurunui District Council has started up a new SEED course to support school leavers. It is similar to programmes being run in other districts and is being privately funded, with no ratepayer money required, Mrs Black said. She said the new course will complement the MTFJ programme and provide support to young people before they enter employment or further study. Kaikōura Mayor Craig Mackle said his worst fears were confirmed, as his council's new contract has seen its funding slashed from $260,000 to $100,000 from July 1. ''We've still got to do what we can, but I'm very disappointed. ''We are going to have to go through things with a fine-tooth comb. ''We've got a plan, but we will need to see if can pull it off.'' The jobs programme has helped young people aged 16-25 into work through driver licensing, careers advice and guidance, interview skills, preparing CVs, work experience and transport.
Scoop
9 minutes ago
- Scoop
Targeting Criminals, Not Kiwi Businesses
Associate Minister of Justice Associate Justice Minister Nicole McKee today announced further steps in the Government's overhaul of the AML/CFT regime, strengthening efforts to combat serious financial crime. 'This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape,' Mrs McKee says. 'Cabinet has agreed to introduce a bill to strengthen enforcement powers for Police and regulators to crack down on those involved in money laundering. 'It will also establish a new financial sanctions supervisory regime and initiate engagement on a sustainable levy to fund AML/CFT system improvements. 'The new approach will deliver more clarity and consistency for businesses while maintaining a strong focus on preventing criminal misuse of the financial system. 'An upper limit will be set on how much cash can be transferred internationally ($5,000 per transfer), reducing the ability of the criminal organisation to move its funds offshore. 'We will also make it more difficult for criminals to convert cash to high-risk assets such as crypto currencies by banning crypto ATMs. 'We will also enable the Financial Intelligence Unit (FIU) to order banks and other businesses subject to the AML/CFT Act to provide ongoing relevant information on persons of interest. The FIU will also be able to order the production of important contextual information other businesses on the financial activities of persons of interest. This will enable the more effective development of the financial intelligence needed to bring the criminals to justice. Advertisement - scroll to continue reading 'Since 2019, the global financial and regulatory landscape has shifted significantly. We need a smarter, more agile AML/CFT system – one that targets criminals ability to launder money, while enabling New Zealand businesses to operate efficiently and competitively. 'Already, progress is being made. Two amendment bills currently before Parliament will remove some of the most burdensome compliance requirements, delivering practical relief for businesses by the end of the year. 'I have also this week announced plans to remove address verification requirements for many lower-risk customers and relax due diligence requirements for lower-risk trusts. 'This means businesses can focus their time and resources where the real risks lie, rather than being stuck chasing paperwork from low-risk clients. 'These are the types of issues businesses have raised with us, and we're acting. This is not about dropping standards, it's about applying them intelligently. 'We want New Zealand to be one of the easiest places in the world to do legitimate business and one of the hardest for criminals to hide. By cutting unnecessary red tape, we're giving honest businesses room to grow, while sharpening our focus on serious threats,' Mrs McKee says. Targeted consultation with industry and stakeholders will begin shortly to inform the new national strategy and levy framework.
Scoop
39 minutes ago
- Scoop
OCR Steady As She Goes
Minister of Finance The Government's responsible fiscal management has supported the Reserve Bank to keep the Official Cash Rate low, Finance Minister Nicola Willis says. The Reserve Bank of New Zealand today announced it would keep the Official Cash Rate (OCR) at 3.25 per cent while continuing to foreshadow further reductions in the OCR. 'There has been a 2.25 percentage point reduction in the Official Cash Rate since August last year – easing the cost of borrowing and delivering much needed cost of living relief for many New Zealand households,' Nicola Willis says. 'While many Kiwis are already experiencing lower mortgage repayments off the back of previous OCR reductions, more will benefit when they re-fix their mortgage this year, meaning the positive effects of previous rate drops will continue to flow-through our economy over the coming months. 'Lower interest rates free-up household budgets for spending elsewhere and they ease the path for those wishing to enter the housing market. They also provide relief to interest-rate sensitive sectors of the economy, including building and construction, with lower interest rates often providing a kick-start for big new projects. 'Despite global uncertainty, the Government is continuing to drive New Zealand's economic recovery forward. Our careful stewardship of the Government books and our ongoing efforts to reduce costly laws and regulations mean inflation and interest rates can stay lower than would otherwise be the case. 'Gone are the days of reckless economic management fuelling the flames of inflation and interest rates – New Zealand now has steady hands at the wheel, and a Government that is determined to keep our economic fundamentals in good order.'
