What is the 'scrutiny principle'?
The scrutiny principle is the principle set out in Section 96 of the Land Transport Management Act 2003 (the Act). This provides that when making decisions in respect of land transport and planning and funding under subpart 1 of part 2 of the Act, the NZTA must give the same level of scrutiny to its own proposed activities and combinations of activities as it would give to those proposed by approved organisations.
Why haven’t I heard of the scrutiny principle before?
The principle is a new provision in the Act and was inserted as a result of an Amendment Act (the Land Transport Management Amendment Act 2008) which came into force on 1 August 2008. The Amendment Act also provided for the effective merger of Land Transport New Zealand and Transit New Zealand and creation of the NZTA.
What decisions does the scrutiny principle apply to?
The scrutiny principle applies to funding and planning decisions under subpart 1 of part 2 of the Act. Broadly those decisions fall into three areas, namely those relating to:
The National Land Transport Programme (NLTP)
Decisions:
- whether or not to vary the NLTP based on a variation to a Regional Land Transport Programme (RLTP)
- connected with the preparation and adoption of an NLTP, applying the core requirements and content specified in sections 19B and 19C of the Act
- not to include an activity or combination of activities in the NLTP
- to include an activity or combination of activities but at a different level of priority than that accorded in the RLTP
- whether or not to vary the NLTP if an RLTP is varied, or at its own instigation
- whether or not to vary the NLTP if a current GPS is amended in order to give effect to that amendment.
Funding of activities
Decisions:
- whether or not to approve activities for funding from the national land transport fund (and in doing so satisfying itself, taking into account, and considering the matters in sections 20(2)(3) and (4) as applicable)
- about the method of assessment to be used to determine whether a particular activity or combination of activities qualifies for funding
- whether or not to impose any terms and/or conditions on a funding approval and the nature of those terms and/or conditions
- about the rate of funding assistance to be set for different activities and combinations of activities
- whether or not to withhold any information as permitted by the Act when providing decision and reasons to affected approved organisations for approving or declining funding
- whether or not to approve activities relating to Maori roadways for funding as if they were State highways or local roads, as applicable.
Procurement (purchasing) of goods and services
Decisions:
- whether or not to approve a procurement procedure for a specific activity or combination of activities
- whether or not to exempt particular payments from the need for a procurement procedure.
What does NZTA do to take the scrutiny principle into account when making relevant decisions?
NZTA will apply the scrutiny principle to all decisions required in respect of any one of its own activities. The Agency will apply the level of scrutiny that it would expect to apply if that activity was instead an activity of an approved organisation.
In making decisions, the NZTA will:
- Follow similar processes for similar types of activities (eg the processes set out in the Planning, programming and funding manual)
- Apply equivalent evaluation criteria (eg in assessing urgency, effectiveness and efficiency)
- Require an equivalent level of information to support an application
- Apply the same level of rigour to the analysis of that information
- Apply the same level of tolerance to cost estimate rigour and potential cost overruns
- Have people of equivalent seniority and experience involved in the assessment and decision-making process for comparable NZTA/approved organisation activities.
Where can I find the systems and procedures the NZTA uses when making relevant decisions?
The NZTA has systems and procedures in place to apply the scrutiny principle when making certain planning and funding decisions. Those systems and procedures are contained in the following manuals:
- Competitive pricing procedures manual – volume 1, Physical works and professional services, version 39, 30 June 2002
- Competitive pricing procedures manual – volume 2, Public passenger transport, volume 1, 1 December 2003
- Planning & Investment Knowledge Base
Where can I find a decision made by the NZTA that is subject to the scrutiny principle?
The investment decisions page lists the decisions made by the NZTA Board.
Some NLTP and procurement decisions may also be accessed on the funding decisions page, however, unlike funding decisions which have a statutory requirement to be published on the NZTA website, some of those decisions may not be published.
You may however, make a request to us under the Official Information Act 1982 for a copy of any such decision. There are a large number of funding and planning decisions made every month, so please provide as much detail as possible to help us to locate the decision.
How can I find out more about the scrutiny principle?
If you have any further questions about the scrutiny principle please email info@nzta.govt.nz
