Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Monopoly Pricing Won't Replace Infrastructure Need

Monopoly Pricing Won't Replace Need for Infrastructure

"Road pricing will not replace the need to develop the road and public transport system", says NZCID Chief Executive Stephen Selwood.

"NZCID welcomes the Transport Ministry led initiative to look at alternative means of transport funding, but considers the better approach would be to look at the long term infrastructure needs of the country and then determine how best to fund it.

While Wellington does have a good public transport system, Auckland and most other New Zealand cities are car dependent.

It's difficult to see Auckland motorists accepting road pricing in the short term when their transport alternatives are so limited.

A better option would be to use tolls to fund new roads, as seen internationally.

There are a number of strategic roads in New Zealand that could be funded, or at least part funded, through tolls. This would free up existing fuel tax to expand and develop public transport services.

In the longer term, charging for road use could gradually replace fuel tax as the primary source for transport funding. This will tend to be a natural process over time as the government's revenue from fuel excise tax reduces through improved automotive technology and increased fuel efficiency.

The current approach is all about managing demand down through charging for road use on a constrained network. This is commonly called monopoly pricing.

A far better approach would be determine is what transport services we need and how best can we fund them through a combination of tolls and petrol taxes."


© Scoop Media

Business Headlines | Sci-Tech Headlines


Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>


Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>


Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>