New Vehicle Suppliers Welcome Road User Charge Transition

Plans to extend the payment of road user charges to all vehicle classes to help pay for the country’s roading have been welcomed by the Motor Industry Association.

The association, which represents manufacturers and suppliers of new vehicles to New Zealand, says the move places all vehicles on the same footing, making the system fairer and more efficient.

Chief executive Aimee Wiley says she is particularly supportive of the announcement by Transport Minister Chris Bishop today that the new system when introduced will be digitally-enabled, making for efficient administration and compliance.

“Converting the whole fleet to road user charges will be a major undertaking, and we will gain nothing if we do not make use of the latest technology to manage the system digitally and in real time. It’ll make compliance much easier and administration less expensive.”

Currently petrol-powered vehicles – the vast majority of the country’s fleet – pay an excise duty of 77 cents on every litre of petrol they use, while diesel and battery electric vehicles are subject to road user charges per kilometre travelled, which vary depending on the weight and type of vehicle.

Ms Wiley says it is the correct approach to determine the technology platform for the new system before deciding the approach and timeframe for the transition.

Currently payers of road user charges buy a paper licence electronically or over the-counter at outlets such as Postshop or the AA.

Digital systems will automate purchasing, renewals, payments and monitoring distance travelled, while reducing manual effort and associated costs.

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