Transfund News - September 1996 - No. 2 - focus on new funding procedures

The second edition of Transfund News followed its first National Roading Programme and contained the following articles:

• Release of Transfund's first Programme and Funding Manual listing all output classes, work categories and policy changes from when Transit NZ was the funding agency.  Key elements included incorporating safety fully into the capital works outputs, and for road maintenance to be  single output class across state highways and local roads. 
• Launch of Transfund. Chairman Michael Gross noted that it "removed any potential conflict of interest" in funding.  It also included a dedicated roading fund (as it meant RUC and a portion of fuel excise duty would be hypothecated, and not reliant on the usual annual Budget process) for the first time, providing security of funding for capital and maintenance funding. Also noted was the ability to fund "efficient alternatives to roading". 
• Removal of First Year Rate of Return as a funding criteria element, as increases in funding no longer rendered it necessary to ration project funding.  This was a measurement of the proportion of benefits a project would generate in its first year, compared to later years, as an additional element to determine whether a project which met the benefit/cost ration threshold had a higher priority for funding over others.
• Contracts will be created between Transfund and Transit NZ, territorial authorities and regional councils for funding granted to them.  This reflects Transfund's role as purchase of services on behalf of road users and the desire to ensure good performance. 
• Strong response to discussion paper on funding "efficient alternatives to roading", with final evaluation procedures to be decided at the end of the year.
• Funding proposal procedures to be tightened.  This followed a report that indicated 34% of projects reviewed had significant shortcomings in their Benefit/Cost Ratio calculations.. Road controlling authorities are to be required to undertake peer reviews of their calculations. 
• New software enables quicker calculation of benefits for projects that reduce accident costs

Transfund News September 1996 No.2 pg1

Transfund News September 1996 No.2 pg2

Transfund News September 1996 No.2 pg3

Transfund News September 1996 No.2 pg4