Organisational overview

Overall, organisational performance is progressing well. At the end of quarter three, 32 of 36 service measures are on track to be achieved. Of note:

• Service Measure 1 - As a result of legislation, work is paused on notifying the Regional Policy Statement, meaning service measure 1 cannot be progressed.
• Service Measure 2 - Service measure 2 (processing resource consent applications within statutory timeframes) will also not be achieved at the new target of 95% for 2025/26 (up from the 50% target for 2024/25) despite improved processing times – 92% of decisions on applications lodged after 1 January 2025 are within the required timeframe.
• Service Measure 11 - We are unable to provide a result with confidence for service measure 11 progress (percentage of known areas at high risk of immediate spread of Eradication or Progressive Containment Pests that are searched). Further information is on page 14.  
• Service Measure 19A - Inspections for service measure 19A (Percentage of stopbanks, river berms and fairways on our major flood protection and control schemes that are inspected annually) are behind schedule due to the need to prioritise responding to weather events. Staff believe the target can be met by year-end providing there are no further weather-related delays.

Financial performance 

At the end of the third quarter, expenditure was $21.6 million below budget and revenue $6.4 million below budget. The combined effect of this was a $15.3 million surplus compared with a budgeted surplus of $0.6 million.

Material items that contributed to the lower than budgeted expenditure were:

• $10.2 million (Bus and ferry services), largely timing related variances, for example, due to lower inflation than assumed resulting in lower bus contract payments. There were also delays to initiatives such as the Public Transport Futures and optimisation programmes.
• $4.3 million (Regulatory framework service), as Resource Management Act (RMA) planning work has been paused due to central government direction, meaning we didn’t borrow to fund the work as budgeted. It also reduced costs of servicing debt (interest and repayments). 
  
• $2.4 million (Flood and river resilience service), a timing related variance from work delays caused by weather/river events and rephasing of Tranche 2 Regional Infrastructure Funding works. This will not materially affect programme delivery.
  

Revenue was impacted by lower-than-anticipated cost recovery from Consenting and Compliance services, with revenue $4.6 million below budget, as well as lower Public Transport grant revenue which is based on actual expenditure.

Key points for quarter three:

Overall, the organisation is performing well and delivering the services for the community we set out in our Annual Plan. Here are some highlights:

• While the impacts of the fuel prices will be felt across the whole organisation, the most immediate impact is in public transport. There has been no drop in service delivery.
• The month of March saw a significant uplift of 4.3% in public transport patronage in greater Christchurch compared to March 2025, likely driven by increased fuel costs. Public transport patronage for the year-to-date is 1.5% down compared to last year.
• We launched Event Direct by Metro service, for people travelling to events at One New Zealand Stadium at Te Kaha in Ōtautahi Christchurch. This service aims to reduce pressure on the core network at peak times and gives eventgoers direct and guaranteed transport to events. 
  
• We led a successful cross-organisational response to eight vessel incidents, including five marine oil spills. The most notable were the Black Cat and HMNZS Te Kaha, both in Akaroa Harbour.
• The application processes for three community contestable funds were brought together, resulting in a simpler, single application process for groups seeking funding support.  With $1.1 million in the three funds, we received 151 applications requesting $3.7 million.
• A pilot public transport service was approved for Aranui, following strong community advocacy. The pilot service is expected to begin later this year.
• Submissions were lodged on central government proposals, including the Natural Environment Bill and Planning Bill, the Simplifying Local Government proposal, the Emergency Management Bill and the Total Mobility Scheme proposals.
• We responded to significant compliance issues, issuing abatement notices to Christchurch City Council (CCC) over the smell from the damaged wastewater treatment plant in Bromley as well as unconsented wastewater overflows into Whakaraupō Lyttelton Harbour and Akaroa Harbour. We continue to work with CCC to resolve these issues for affected communities and mana whenua.
• By the end of quarter three, more than 90 per cent of Biosecurity known active sites have had control measures taken to prevent pest reproduction.
• Delivery remains on track across the significant flood resilience co-investment projects underway. Tranche 1 works include approved programmes across the Rangitata catchment, priority structure upgrades and adaptations, and the Waitarakao/Washdyke/Seadown project.  
• Staff supported the response and recovery effort for the State of Emergency declared for Banks Peninsula in the February flooding event.
• In March, a new electric double decker bus, the lightest in the country, joined Metro’s fleet.
• The next phase of the National Ticketing Solution was implemented, enabling SuperGold and Community Services Card holders to link their cards to a contactless debit or credit card, including Apple Pay and Google Pay.
• 35 staff attended formal Emergency Coordination Centre (ECC) training, with a further 52 staff participating in an online ECC hui. We have 160 staff trained to support in response or recovery work in the event of a civil defence emergency.  
• We held establishment hui for four of the eight new Local Leadership Groups that replace the Canterbury Water Management Zone Committees.