Funding Review Q & A

Who is coordinating the Funding review?

A review steering group, with representatives from Maritime New Zealand, the Ministry of Transport and the Treasury, coordinates input from the review and feeds this information back to the Maritime New Zealand Authority. The Authority will in turn report to the Minister of Transport.

Who else is involved in the review?

A project team and a sector reference group (including representatives from commercial, recreational and international shipping, training, seafarers, port and harbour sectors) carry out the work of the review and provide industry feedback.

What is the timeframe for the Funding review?

The review started in January 2011. A draft discussion document was to be provided to the Minister by October 2011, but was delayed because of Maritime New Zealand’s response to the grounding of Rena.

A date for the resumption of the full funding review is being discussed with the Ministry. March 2012 is likely to be the earliest, with implementation targeted at January 2013. If this timeframe is followed, and the Minister and Cabinet agree on a proposed discussion document, this document should be available for comment from the maritime community in August/September 2012.

What will the review consider?

The MNZ Funding review seeks to:

• demonstrate a clear understanding of the regulatory and sector services being delivered by MNZ, and the statutory or contractual mandate for each activity
• incorporate information from other reviews of MNZ services and the exercise of its statutory functions, and whether these can be undertaken in a more efficient and effective manner, including consideration of the cost of corporate services
• identify the users and beneficiaries of these services and the economic, environmental and social benefits that these services deliver to the maritime community and to New Zealand, particularly the New Zealand economy
• recommend the appropriate mix of funding by taxpayers and the maritime community on a sustainable basis, reflecting costs, risks and benefits to the various sectors within the maritime community
• specifically consider the level of the Maritime Safety Charge (MSC) and also direct fees and charges.

The results of the review will be used to produce a discussion document setting out funding options for consideration by the Minister of Transport.

The funding of the Rescue Coordination Centre New Zealand (RCCNZ) and the Marine Pollution Response Service’s (MPRS) are not being considered as part of the review. The share of MNZ shared (corporate) services paid by RCCNZ and MPRS will be reviewed.

Will any of the services MNZ currently provides be discontinued? Are there likely to be cuts to MNZ funding as a result of the review?

It is too early to say what changes might result from the review. The review seeks to identify the services MNZ should be providing as a first step, then how much funding these services require and who should pay for these. Any need for changes to MNZ services will follow that review.

Will there be changes to licensing and registration fees?

The wider funding review will include consideration of user charges for MNZ services, which will include licensing and registration fees.

What were the changes to the levy for cruise ships announced by the Minister?

From 1 October 2010 the MSC rate for cruise ships was reduced to $3.29 per passenger (based on passenger capacity) (down from the previous rate of $8.29) per passenger, per port visit.