RUC Review An Utter Disgrace

Media Release: 6 May 2009

RUC Review An Utter Disgrace

New Zealand motorists should be very worried and alarmed by the recommendations contained in the review of road user charges.

“The review is an utter disgrace,” says AA spokesperson Simon Lambourne.

“For some bizarre reason the review is based on the 2007/08 year. This means it has not taken into account the significant funding changes in 2008/09 caused by hypothecation, including the fact that diesel users are now underpaying their fair share by $289 million and petrol motorists are paying eight cents per litre too much!”

“The review’s proposal to treble the cost of licensing vehicles and reduce excise tax also defies logic. It would see motorists who frequently use the roads being subsidised by those who rarely use them.”

“The AA is most concerned that the review has completely misrepresented our position on diesel excise on page 53 of the report. That does not give us any confidence in the review and raises serious questions about its selective nature and integrity.”

“To cap off the madness, the review recommends a six week notice period for increases in RUC rates. The heavy freight industry has, in the past, made outrageous bulk RUC purchases when notified in advance of a RUC increase. Unless strict controls are put in place to limit the amount of RUC that can be purchased during any six week notification period, then this review recommendation is nothing more than a licence for the heavy freight industry to print money at the expense of motorists and taxpayers,” says Mr Lambourne.

“The AA will be making our serious concerns known to the Minister of Transport and his officials. The review recommendations are not workable and their introduction will be opposed by motorists.”

ends

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