Transport bodies set to merge

Two key government transport bodies are set to be merged in a bid to ensure they work better together.

If approved, Transit New Zealand and Land Transport New Zealand will become one body and some of their roles will be transferred to the Department of Transport.

Minister of Transport Annette King said: "Despite recent improvements, transport agencies need to work more collaboratively and with a common purpose."

The merger plan came as she released the "Next Steps" report today - the final in a series of reviews designed to ensure value for money in the land transport sector.

The report also recommends that all fuel excise duty, road user charges and motor vehicle registration fees to be directed into the dedicated National Land Transport Fund and effectively be ring-fenced for land transport expenditure.

Ms King said further work and consultation had been commissioned on this issue.

- NZHERALD STAFF

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