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Electronic RUC system available from 2010

Hon Steven Joyce
Minister of Transport
8 December 2009
Media Statement

Electronic RUC system available from 2010

Transport Minister Steven Joyce has put measures in place that will enable electronic distance recording and electronic display of road user charges (RUC) licences to be used from next year.

Regulations that set up a process for approving providers of electronic RUC services come into effect from January 1, 2010. This will enable trucking companies to voluntarily use electronic distance recording devices to measure distance travelled. Paper-based RUC and mechanical hubodometers will still be available for companies that prefer them.

“The government wants to see the administration of RUC move towards a simplified, more modern system,” says Mr Joyce.

"Transport operators will have the opportunity to obtain, from approved providers, electronic devices that can operate as an alternative to mechanical hubodometers and paper licences. This will go a long way towards reducing compliance costs and improving distance measurement for those who choose to adopt the new technology.”

Mr Joyce says the government is working hard to reduce compliance costs across industry and the move to electronic RUC is another concrete example of a simple move that will bring real benefit to the transport industry and the economy

Many trucking companies already use electronic devices and data collection systems to manage their businesses. Provided they meet performance requirements, they will now be able to use similar technology to manage their RUC.

"Electronic distance recording is more efficient than existing mechanical methods and can make the operation of RUC easier for heavy vehicle operators."

This initiative follows recommendations from an independent review of the RUC system. The Review saw the progressive and voluntary introduction of modern electronic technology as key to updating and enhancing the RUC system.

Other RUC initiatives the government is working on include simplification and modernisation of the road user charges system through

* the removal of operator nominated weights

* removal of time licences and consolidation of vehicles exempt from road user charges

* improvements to enable greater compliance

* review of the road user charges legislation

* a review of the cost allocation model to ensure that costs are allocated appropriately and to make the model simpler and more transparent to users.

ENDS

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