Key Takeaways
- The New Zealand government’s Land Transport (Revenue) Amendment Bill proposes to add tolls to existing roads, which the road freight industry considers "double-dipping" motorists.
- The bill also restricts heavy vehicles from driving alternative routes that could avoid tolled sections, which the industry believes would be difficult to enforce and could negatively impact legitimate users.
- The industry is in favor of the bill’s road-user charges modernization elements, which include changes to enable greater use of technology and more flexible payment options.
- The modernization of road-user charges is seen as a positive step, as it would reduce unnecessary administration and compliance costs for transport operators and motorists.
Introduction to the Land Transport (Revenue) Amendment Bill
The New Zealand government has recently proposed the Land Transport (Revenue) Amendment Bill, which aims to allow tolls to be charged on existing roads. The road freight industry has expressed strong opposition to this proposal, citing that it would be "double-dipping" motorists who have already paid for road maintenance and construction through taxes and road-user charges. Transporting New Zealand chief executive Dom Kalasih has stated that the public is unlikely to support this move, especially during the current cost-of-living crisis.
Concerns About Tolls on Existing Roads
The industry’s primary concern is that tolls on existing roads would unfairly punish motorists who have already contributed to the maintenance and construction of these roads through taxes and road-user charges. Kalasih argues that a tolled road should only be tolled if it provides a specific benefit to users, rather than simply being a means to generate revenue. The industry believes that the current proposal would result in everyone paying for the tolls, rather than just those who benefit from the new road. This approach is seen as unfair and could lead to widespread dissatisfaction among motorists.
Restrictions on Heavy Vehicles
The bill also proposes to restrict heavy vehicles from driving alternative routes that could avoid tolled sections. The industry believes that this restriction would be difficult to enforce and could negatively impact legitimate users who have valid reasons for taking alternative routes. Kalasih points out that operators and drivers are best positioned to decide which route to take, and that there may be legitimate reasons for choosing an alternative route, such as fuel use, gradient, rest and refreshment facilities, and route efficiency. The industry is concerned that exceptions to this rule would be difficult to enforce and could lead to unnecessary compliance costs.
Exceptions to the Rule
The industry is also concerned about the exceptions to the rule, which would allow heavy vehicles to use restricted routes for deliveries or access to premises along the restricted routes. Kalasih believes that these exceptions would be difficult to enforce and could lead to unnecessary compliance costs. The industry argues that the police would likely give infringement notices to trucks that use restricted routes, even if they have valid reasons for doing so. This would result in unnecessary costs and administrative burdens for transport operators and motorists.
Modernization of Road-User Charges
Despite the industry’s opposition to the proposal to add tolls to existing roads, they are in favor of the bill’s road-user charges modernization elements. These changes include enabling greater use of technology, more flexible payment options, and the removal of the requirement to display a RUC label. The industry believes that these changes would reduce unnecessary administration and compliance costs for transport operators and motorists, and support the transition toward a universal RUC system over time. Kalasih argues that the current system of collecting petrol excise duty at the pump is no longer effective, as the demand for petrol use is reducing. In contrast, the road-user charges system has a stronger correlation with road costs and is a more effective way to capture revenue.
Conclusion
In conclusion, the New Zealand government’s Land Transport (Revenue) Amendment Bill has sparked controversy among the road freight industry, which believes that the proposal to add tolls to existing roads is unfair and would result in "double-dipping" motorists. While the industry is in favor of the bill’s road-user charges modernization elements, they are strongly opposed to the restrictions on heavy vehicles and the exceptions to the rule. The industry argues that these restrictions would be difficult to enforce and could lead to unnecessary compliance costs. As the government considers the submissions on the bill, it is likely that the industry’s concerns will be taken into account, and the proposal will be subject to further scrutiny and debate.
