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ARC sets the rules for transport funding

The ARC sets the rules for transport funding applications

16 December 2002

Regionally agreed goals for improved passenger transport have placed increased expectations on the ARC to provide funds for infrastructure.

At this afternoon’s Council meeting, the Auckland Regional Council adopted a strategy for purchasing passenger transport infrastructure. The principles, funding strategy and contract conditions adopted will now be used as the basis for consideration of applications for funding in this area.

ARC Chair Gwen Bull commented, “We are committed to an improved passenger transport network for Auckland. We will be one of the organisations that provide some of the funding for this. But, we owe it to the ratepayers of the region to have an accountable and transparent process for providing those funds. Today’s decisions provide that framework and we look forward to considering applications.”

Principles adopted included:

- Expenditure decisions require clear accountability and the provision of full information to the regional community

- Financial responsibility should be aligned with decision making

- Costs should be allocated where benefits lie

- Funding decisions made by the various parties should support safety, and the integration of passenger transport, roading, land use and community development at the local level

- Funding should be agreed via transparent, business like and fully informed processes that are open to public scrutiny

Contract conditions included:

- ARC will purchase agreed infrastructure services that will increase patronage at least cost to support the regional Growth Strategy

- ARC will fund the agreed operating costs of infrastructure implied by legislative requirements, acts of god, agreements already entered into, maintenance and network control, renewals and other costs of providing a regional network and consistent standards

- ARC will not fund the capital or operating costs associated with special standards for the benefit of local communities; costs not related to passenger transport; the net costs of commercial activities; or interest, cost of capital or depreciation reserve in relation to public funding

- ARC will fund only operating expenditure via the access fee. Capital expenditure amounts are to be negotiated separately after clarifying that these are not the responsibility of Infrastructure Auckland or territorial authorities to fund

- ARC will require competitive tendering where possible

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