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Statement of Consultation Undertaken


This Document is Archived


Regulatory Impact Statement

Energy and Communications Branch
[ Last Updated 18 October 2006 ]


Stakeholder Consultation

There has been extensive consultation on the issues. A discussion document, approved for release by Cabinet Economic Development Committee (EDC Min (05)16/7 paragraph 3 refers) was circulated in June 2005 and discussed at five seminars nationwide. 117 organisations were represented at the seminars and took part in workshop discussion groups.

A total of 53 submissions were received and analysed by the Ministry. An analysis of the submissions was completed in October 2005 and made available to stakeholders.

The NZUAG has been consulted at key stages in the development of the proposed policy framework. There is wide support for many aspects of the proposed framework, especially the establishment of consistent definitions and process across all utility statutes.

A proposal was consulted with NZUAG which would have required road controlling authorities to develop and publish road-utility management plans with the objective of improving the coordination of road work programmes with utility work programmes. While this would have limited to some extent the wasteful re-work and reductions in the quality and economic life of road surfaces that currently occur, RCAs were concerned at the cost and resource implications. RCAs also have existing obligations to produce road asset management plans and Long Term Council Community Plans which overlap with the proposed requirement. On balance it was concluded that this proposal would have significant cost impacts while not directly addressing some of the underlying coordination issues, such as reluctance by some utility operators to reveal their forward development plans for commercial reasons. This proposal was therefore not adopted.

Submissions from utility providers included the proposal that the road surface be treated in the legislation as a utility in the same way as water, gas, electricity and telecommunications networks. Under this approach it was argued that whenever trade-offs between roads and utilities were required the public interest should be determined on a case by case basis, with no presumption in favour of road uses. However, officials consider the universal free access to roads (and thus to most properties and community facilities) is an important public good that should be balanced against, but not be compromised by, competing uses of space in the road corridor. This proposal was therefore not adopted.

The following table outlines significant concerns expressed during consultation, and how they have been dealt with in the proposed policy framework.

Policy element Concern Addressed by…
Expanded management powers for road controlling authorities (RCAs) Utility operators are concerned that a balanced approach will not be taken Proposed requirement that all utilities must be treated equally (including those operated by the local authority); proposed requirement that RCAs must ensure balance between roads and utilities, in the public interest.
Utility operators will lose their ability to place "reasonable conditions" on other utility operators proposing works in the road Utility operators are concerned that there will not be sufficient safeguards for their networks and installations A "menu" of appropriate and consistent standards and codes will be established. The potential for anti-competitive conditions will be removed.
A conditional right of utility access to rail and motorway corridors is established Utility operators would prefer less fettered access to rail and motorway corridors. Transit NZ and ONTRACK consider their statutory transport and safety objectives will be compromised. Compared to the right of access to roads, the access of utility operators to rail and motorway corridors will be subject to a more rigorous regime of specifications and conditions, especially where restricted space or higher risk factors apply, and access can be ruled out. Dispute resolution processes will apply.
Utility providers retain rights of access to roads TLAs seek increased control over placement of telecommunications facilities in road reserves Expanded management powers for RCAs, supported by enforceable codes and standards.

Government Departments / Agencies Consultation

An officials' review group (comprising Ministry of Economic Development, Ministry of Transport, Ministry of Consumer Affairs, Department of Internal Affairs, the Treasury, and Land Transport NZ, with the Ministry for the Environment maintaining a watching brief) was established to ensure whole-of-government perspectives were maintained. The Ministry of Transport (MOT) maintained contact with ONTRACK and Transit New Zealand.

The MOT has a significant concern that the current level of fatal and serious injuries as a result of hitting a roadside hazard is not acceptable; that there should be a national risk management plan to reduce roadside hazards; and RCAs and utility operators should both take responsibility for reducing these hazards. Under the preferred option MOT officials would work with the Ministry of Economic Development to ensure national standards and codes of practice recognise this aim.


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