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• Position Paper
• Regulatory Impact Statement
• Summary of Submissions
• Discussion Paper
• 19 Feb 2007 Forum

Note: It has not been possible for officials to quantify costs and benefits at this time. If the policy framework is approved in principle a further RIS will be prepared when additional detail has been developed.

Government

The proposed policy framework will support the Government's goal of a world class infrastructure by improving the quality and reliability of utility services. It will also assist the Government's digital strategy through:

• Improving "confidence" by increasing reliability. Telecommunications (and with it the Internet) are susceptible to physical damage to networks. Much of this damage is avoidable.
• Improving "connection" by enhancing access (e.g. by fibre optic and telecommunications network providers) to local and national corridors for the installation of networks, and by reducing delays and uncertainties in the associated processes.

A risk of establishing the proposed framework over a number of statutes (preferred option) is the possible loss, over a period of time, of consistency and a holistic view.

The cost of a one-off educational campaign to promote and explain the new regime to stakeholders is estimated at $10,000.

The Ministers of Economic Development and Transport would be empowered to adopt appropriate codes of practice and standards, with associated costs of advertising draft documents and considering submissions. The estimated ongoing administrative cost of the function (Ministry of Economic Development and Ministry of Transport) is set out below.

The volume of applications for access to motorway corridors could be expected to increase, with associated resource demands. Transit New Zealand already has requirements and standards to guide the consideration of applications for access. These would require one-off amendment.

ONTRACK already processes applications for access and placement of assets in the rail corridor, but would be expected to receive a greater volume of applications, and to process them in accord with new statutory timeframes. The resource impact on ONTRACK could be reasonably significant, but costs would be recoverable from applicants.

Local Government

Benefits to local government will accrue through the reduction of damage to roads and drains caused by utility works. This will be achieved by an improved regime of enforceable standards for works. TLAs will also have greater scope to move hazardous roadside obstacles once enforceable standards for the allocation of costs are adopted. Mediation provisions will assist the timely resolution of disputes. TLAs will retain the ability to establish local solutions through the use of partnering agreements with utility operators.

Road controlling authorities would be required to undertake the additional responsibility of overseeing and managing sustainable multi-purpose use of the road corridor in the public interest. Some time would be required for TLAs to familiarise themselves with the new requirements. A one-off amendment to existing road management policies and processes would be required, and potentially the scope of enforcement activities may be extended for some TLAs. Some TLAs would also face additional administrative costs due to the requirement to treat their own utility networks in the same manner as all others with regard to works in the road.

Costs associated with the future development of codes and standards for works in the road and the management of utility installations would be reduced because a single national set would be developed rather than every TLA having to develop its own.

It is not possible to quantify the total costs to local government because the detailed design of legislative provisions has not been undertaken yet. The costs will also vary considerably between TLAs because the nature of existing administrative policies and processes varies from council to council.

Utilities Industry

Parties affected by the preferred approach are utility operators and their works contractors. Benefits would derive from the establishment of consistent legislative definitions and processes, and nationally consistent codes of practice and standards for utility works and installations. Certainty of compliance would be enhanced.

Delays in processing applications for access to corridors would be reduced by the introduction of statutory timeframes for associated processes, and the timely resolution of disputes would be enhanced by the introduction of a mediation step.

New entrants and utility providers extending their networks would be less likely to be subject to barriers imposed by incumbents, because the ability of utility operators to place "reasonable conditions" on other utilities would be removed, and replaced with national codes and standards.

There will be potential for increased utility access to rail and motorway corridors, balanced with appropriate recognition of the transport and safety interests and responsibilities of Transit NZ, and the transport, safety and business interests of ONTRACK.

Utility operators are already required to submit "road opening notices" and notify parties that may be affected by proposed works. These obligations would be only marginally affected by the proposal. Improved reinstatement of roads following works would involve a transfer of cost from councils (and ratepayers) to utility providers (and their customers) but would be broadly neutral as most utility customers are also ratepayers.

Other Industry

Businesses depending on road transport and utility services are likely to benefit from the proposed changes because improved coordination, higher levels of compliance, and enhanced dispute resolution will result in reduced disruption to traffic and utility services; quicker roll-out of improved services and new technologies; reduction in the prolonged road works that often affect customer access to business premises; and reduced vehicle operating costs as sub-standard road reinstatements decrease and road "roughness" reduces.

Society

The community would benefit from reductions in the social cost of road crashes, as a result of RCAs having greater ability to integrate road safety goals with roading programmes. Community members would also gain the same benefits as businesses (see above),

As "owners" of the road reserve, through territorial local authorities, the value of the assets to the public would be enhanced by improved allocation and efficient utilisation of space. The public good of universal access to roads and property would be protected through the establishment of clear governance and enhanced management regimes for roads.