Introduction

DOC is reviewing its fee structure for activity fees that are determined by a percentage of revenue earned through a concession.

December update

We have been reviewing the feedback from our last round of consultation and have been exploring and refining the detail of a potential revised Percentage of Revenue Framework.

We had planned to have the detail of the potential revised fee structure available for feedback in October. However, this work is taking longer than we expected for several reasons, including the challenge of the task, staff changes and COVID-19 impacts.  

With the Christmas and peak summer holiday period coming up we expect to provide an update on the project in February 2022. 

We're reviewing our percentage of revenue fee structure to ensure these fees are set at an appropriate market rate and are fair and transparent.

Note this is a policy review on the method used to determine the activity fees for some (but not all) concessions. We are not looking at individual concession fees as part of this review.

We have invited the concessionaires who have an activity fee that is directly or indirectly based on the percentage of revenue framework to participate in the review by email. We are also keeping concessionaires updated with regular information in the Business on the Green newsletter.

What happens during the review

There are several phases where we will seek input during the review:

  • Phase 1 (completed) – Issues and options papers were sent in January 2021. This input will help us work through various options.
  • Phase 2 (in-progress) – Affected concessionaires have been provided with information on our preferred option, why we selected it and how we propose it will work. Following stakeholder feedback, we're currently refining the final details of the framework.
  • Phase 3 – We’ll send out our proposed modified Percentage of Revenue Framework for final feedback.

Phase 2 consultation

During Phase 2 consultation we asked for feedback on DOC’s options assessment.

The “Assessment of Options” paper provides information on the preferred option and why we selected it for further development and testing. The feedback provided is assisting us with developing the detail for a preferred option.  

Assessment of Options (PDF, 1,305K)

The Phase 2 consultation period closed on Friday 23 July 2021. The Phase 2 high-level feedback summary gives an overview of the key themes and findings in stakeholder feedback on the Assessment of Options.

High level feedback – Phase 2 (PDF, 409K)

Consultation documents

Phase 2

Phase 1

Contact us

If you have any questions around the percentage of revenue fees review send them to PRFreview@doc.govt.nz.

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