The government is announcing a new approach to public transport in New Zealand.

The approach will include support for 'on-demand' public transport services, allowing councils to own and operate services in house, improving pay and work conditions, aiming to deliver routes and services that reflect community needs and producing incentives to decarbonise the fleet.

Workers and public transport users are at the heart of the new Sustainable Public Transport Framework, says Transport Minister Michael Wood.

"We are rolling out a new public transport model, that will prioritise fair and equitable treatment of employees, mode-shift and improved environment and health outcomes,” says Wood.

"For too long, the public transport model has encouraged operators to squeeze worker conditions, pay and opportunities, preventing public transport from living up to its full potential.

"The current model that was meant to lead to better public transport is causing operators to wind back services and timetables, because they can't get drivers."

Wood says public transport is too important to the environmental, social and economic goals to allow this to continue.

"The new Sustainable Public Transport Framework will help to create a public transport system that is reliable, an attractive career opportunity and a credible alternative to using cars to get around.

"Improving the conditions of employees will make it easier to recruit and retain the workforce, allowing frequent and reliable services. This will also provide job security by allowing drivers the opportunity to maintain employment if there is a change in operator.

"The new model will also give local authorities more flexibility and control over how public transport is planned and delivered, so they can have a solution that works for their communities."

Public transport authorities will have the option to own assets and operate services, if they feel that's a better solution for their community than outsourcing to an outside provider.

Wood says this will make it easier to plan networks and services, to set fairs and policies, and encourage innovation in how services are delivered.

"Our Government recognises that public transport is a lifeline that connects people to work, to school, to recreation and to their friends and family. These changes will mean that we have an effective, reliable and sustainable public transport system well into the future."

Increased centralisation would lead to fewer buses - ACT

"Minister of Transport Michael Wood's policy of trying to take public transport accountability away from private companies is a sop to union bosses that could lead to fewer buses on the road," says ACT's Transport spokesperson Simon Court.

"If councils accept these changes it means they would have to act as both the purchaser and the provider, and that they'll be in charge of managing capital."

Court says taking responsibility away from private providers won't create more bus drivers and train conductors, it will stretch councils' limited capital further and lessen accountability on the provider.

He says the result of this will be less buses on the road.

"Public transport services are being hammered by staff shortages that are reducing services, but this is symptomatic of a wider problem within the New Zealand economy and centralising the services won't make any difference.

"Instead of going straight for centralisation, the Minister should be looking at practical ways to tackle the labour shortage and increase resourcing.

"As released in our cost of living document, ACT says we need to do this by dumping the labour market test, industry specific wage requirements, and transfer restrictions. Foreign workers should be able to work for accredited employers so long as they are employed consistent with New Zealand law."