Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Road User Charges Bill will mean higher costs for motorists



Media Release: 21 February 2012

Road User Charges Bill will mean higher costs for motorists

The Road User Charges Bill just passed by Parliament will mean higher costs for the majority of diesel vehicle owners, says the New Zealand Automobile Association.

“While the new Bill simplifies the Road User Charges (RUC) system and reduces compliance costs and fraud, most diesel users will have to pay more,” says AA spokesperson Mark Stockdale.

“A vehicle will now be charged for the maximum weight it can carry, which assumes that cars are always carrying a full load, which is rarely the case. This is expected to result in an increase of $1.56 per 1,000 kilometres for a diesel car, or about an extra $23 per year for the average motorist.

“While not a large increase, this amounts to an extra $5 million a year across the entire fleet of 217,000 diesel cars and utes. On top of that, RUC fees are expected to increase again later this year along with the petrol tax.

“The new Bill sends the wrong message to diesel car owners. The Bill is a missed opportunity to encourage people into buying more fuel-efficient, environmentally-friendly diesels.”

The AA says a minority of very heavy diesel vehicle owners will benefit from the changes, at the expense of the majority of owners who will end up paying more. Ninety percent of RUC users are not heavy freight.

“In addition to higher RUC fees for cars, owners of large motorhomes will pay over double what they do now. This is despite motorhomes not causing any more damage to the road, and will be hard for owners who are often on fixed incomes. Other vehicles that do not carry heavy loads, like courier and furniture trucks, tow trucks and fire engines will also pay more. This will have a negative impact on many businesses who will pass on higher costs to their customers,” says Mr Stockdale.

“The Bill has moved away from the principle of users pays, whereby those who carried more weight paid more road tax Under the new regulations, vehicle owners who carry light loads will be subsidising the heaviest vehicles, and that’s plain wrong.

“The AA is disappointed the concerns of the majority of diesel vehicle owners have been ignored in the drafting of this Bill. However, some of these unfair and unintended consequences can still be addressed by changing the consequential regulations.”

The AA made strong submissions on the draft Bill, proposing including a lower RUC weight class for cars, creating a new class for motorhomes, and permitting commercial vehicle owners to nominate a lower weight for certain vehicle sub-classes that better reflects their operating weight.

• Diesel vehicle owners contribute about $1 billion a year in Road User Charges, compared to about $1.45b from petrol vehicle owners in fuel tax. These funds are used to maintain the land transport network.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

3-Year Transport Plan: No Plans On Six Northland-Election Bridges

The Transport Authority’s decision to fund only four of the 10 bridges promised in National’s shameless Northland by-election bribe is a huge embarrassment for Transport Minister Simon Bridges, Labour’s Transport spokesperson Phil Twyford says. More>>

ALSO:

Family Violence: Increasing Reporting But Fewer Resolutions

“We are aware the Police have embarked on a significant programme of change in how they respond to family violence. The data suggests that adequate resourcing including investing in staff training, support and culture change will be required for this to be effective.” More>>

ALSO:

Health: NZ Children Still Suffer Rickets From Lack Of Vitamin D

Vitamin D deficiency continues to cause rickets in young New Zealanders, new University of Otago research has found. The researchers say that their finding suggests that at-risk mothers and children should be better targeted for Vitamin D supplementation. More>>

Also GPs, Housing, Milk: PM Press Conference On The UN Security Council

In a press conference today the Prime Minister discussed the upcoming appointment of New Zealand to chair the UN Security Council. He said they would put pressure Asad in Syria and attempt to “jump start” negotiations between Israel and Palestine. More>>

ALSO:

Housing: State Houses Could Sell To Overseas Groups

Bill English’s admission that he would sell hundreds of New Zealand’s state houses to the Australians is the latest lurch in the Government’s stumbling, half-baked housing policy, Labour’s housing spokesperson Phil Twyford says. More>>

ALSO:

AND:

Gordon Campbell: On Climate Change Protest, And Iraq Training

For sheer style, humour and content fit for purpose, it would be hard to beat the Greenpeace protest at Parliament. The fact that the hanging of functioning solar panels from Parliament Buildings caused such spluttering outrage among fogeys old (David Carter) and young (David Seymour) added a Monty Python level of amusement to the whole event. More>>

ALSO:

Speech: Bill English Explains NZ Government To Australia

Here I am part of a successful government, now into its third term and hopefully with more to come. I want to offer some thoughts tonight about the business of government, from a centre-right perspective. More>>

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news