Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Full costs of transport revealed

31 March 2005 Media Statement

Full costs of transport revealed

The true cost of the road and rail system is spelled out in a report published today by the Ministry of Transport says Transport Minister Pete Hodgson.

The report of the Surface Transport Costs and Charges Study looked at the total charges paid by users of New Zealand's road and rail system and the costs that arise from them in 2001/02. The report, designed to help inform policy development, is the first in a series and will be updated annually.

The main findings of the study are:

- That the charges paid by road and rail users do not cover the costs of those networks, and that some costs are not paid by anyone at all
- Rail users pay a higher proportion of their costs than road users
- Users of urban local roads pay a lower proportion of costs than users of rural roads, and
- That in many cases the costs of remedying a problem (eg congestion) are much lower than the cost of the problem itself.

The report also identifies money paid from the Crown Account to cover costs generated by the transport system. In 2001/02, $546.7 million of fuel duty was paid into the Crown Account, while $670 million was paid from it to cover the cost of accidents not covered by ACC, and $442 million to cover the health effects of vehicle emissions. In other words, roughly half these costs are paid for by motorists, while the other half of the bill is footed by the taxpayer.

"This government is committed to a safer and more efficient transport system with lower health and environmental impacts. This world-leading report will help guide policy development to that end."

The report is available on

Notes to editors

Charges paid through: registration, Road user charges and fuel excise duty Costs met
To items now
covered by the NLTF $1,245
$1,245 From the NLTF equivalent
To ACC $ 424 $ 445 By ACC
To the Crown Account $546.7 $1.112 From the Crown Account
Total paid in $2,215.7 $2,802 Total paid out

Figures in $ million for 2001/02


Money paid out from the Crown Account comprises:

Non-ACC costs of vehicle accidents $670 million
Health effects of vehicle emissions $442 million

The following costs are not covered:

Climate change
Loss of water quality

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news