Transporting New Zealand can be contacted on (04) 472 3877 Nick Leggett chief executive officer or info@transporting.nz
TRANSPARENCY IS THE KEY TO USER-PAYS FUNDING
M
ost road transport operators would agree with the statement that a safe transport system relies on an effective regulatory regime with the maximum buy-in from its customers. Many would also agree that when it comes to a user-pays approach, the money recovered from road users should directly go back into the provision of the roading system through the National Land Transport Fund (NLTF). This means that funds paid by road users through RUC, fuel excise, and vehicle registration fees should be used predominantly to pay for road construction and maintenance and enforcement by the Police Commercial Vehicle Safety Team. In our recent submission to the Ministry of Transport’s RUC review, Ia Ara Aotearoa Transporting New Zealand strongly opposed government proposals that would see additional funding pressures added to this user-pays system. These costs are proposed to pay
for unrelated externalities that the current government sees as its policy priorities, such as pollution alleviation and climate change initiatives. We contend that RUC works well because of its simplicity and relative transparency. Diluting this to pay for these other things is poor policymaking, especially when other mechanisms are in place to fund such activities. In our submission, we urge the government not to let its management of externalities – such as climate change – trump our aspirations for a thriving economy, a safe and productive roading network, and the social and economic benefits those can bring. We also urge the government to manage any externality costs fairly and transparently. Transporting New Zealand also sees an important benefit of the current RUC regime because it internalises the associated costs, i.e. the money collected is used to maintain the network damage. However, with the inclusion of other externalities into the mix, that level of
connection between the road user and their impact on the system becomes far more complex and tenuous, resulting in less money invested in our roads in the future. Using the RUC system to fund a broader range of initiatives will also make it much more difficult for road users to follow the money through the system and inevitably lead to greater distrust. Ultimately, that is the environment that promotes non-compliance, a situation that policymakers and all stakeholders must try to avoid. Transporting New Zealand remains convinced that the only way to maintain the integrity of the NLTF and maintain ‘mode neutrality’ in policymaking is for decisions on transport funding to be made through rigorous cost-benefit analysis using well-accepted methodologies. Unfortunately, road users are increasingly seen as a cash cow for the government to milk regardless of the critical role roadbased mobility plays in the economic and social fabric of New Zealand.
Register now for The Road Ahead Conference 2022 After a false start due to Covid-19 lockdowns in 2021, Transporting New Zealand has rearranged The Road Ahead Conference for 28 to 29 September 2022. We invite you to join us at Invercargill’s Ascot Park Hotel to contemplate what’s ahead for transport operators as the world looks to recover from the challenges of the pandemic. The conference will focus on the changing workforce, sustainability and environmental requirements, future fuel sources, supply chain issues, and digital and other disruptors. Speakers will include Minister of Transport Michael Wood, Waka Kotahi chief executive Nicole Rosie and economic commentator Cameron Bagrie. The keynote speaker will be Animation Research Ltd’s Sir Ian Taylor. We also
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hope to hear from the leader of the National Party, Chris Luxon. Doug Kamo is back as MC. The final night of the conference will feature the return of the New Zealand Road Transport Industry Awards. The intention is to recognise the individuals, organisations and companies in and around the road transport industry that have raised the bar regarding safety practices, knowledge, training, industry awareness, innovation and expertise. The awards will honour those that ultimately make a positive difference to our industry and ensure road transport is a rewarding and safe environment in which to work. The New Zealand Road Transport Industry Awards rely on nominations from the sector so if you believe an
Sir Ian Taylor is the keynote speaker at The Road Ahead Conference 2022.
individual or organisation deserves recognition, please go to transporting. nz/our-events/industry-awards Conference registration is now available at conference.transporting. nz with an early-bird discount running until 31 July. I look forward to seeing you in Invercargill.
