Parliament

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

 

Petrol excise, road user charges increases

Gerry Brownlee - Petrol excise, road user charges increases


Transport Minister Gerry Brownlee has today confirmed increases in petrol excise duty of two cents a litre and an equivalent increase in road user charges of an average of 4.1 per cent.

The increases will take effect from 1 August and the additional revenue will go into the National Land Transport Fund to assist investment in transport projects throughout the country.

An increase in petrol excise duty and road user charges of 1.5 cents a litre was originally scheduled to take effect in July 2011. However, the government deferred the increase due to the challenging economic circumstances New Zealand was experiencing as it continued to recover from the global financial crisis and the Canterbury earthquakes.

“This increase is effectively a catch-up to ensure there continues to be sufficient revenue available to meet the government’s land transport expenditure targets,” Mr Brownlee said.

“The funds raised will contribute to the annual $1 billion investment in developing the country’s state highway infrastructure, which is crucial in assisting economic growth and enabling greater productivity from the transport network.”

A two cent increase in petrol excise duty will increase average running costs for an average petrol vehicle by around $30 a year, or 0.9 per cent. The financial impact is similar for a light diesel vehicle subject to road user charges.

The cost of road user charges represents about a tenth of the total costs of a road freight operator, therefore an average road user charges increase of 4.1 per cent is estimated to increase the total cost of truck operation by around 0.4 per cent.

The 4.1 per cent average increase is distributed in accordance with the Ministry of Transport cost allocation model, which allocates costs between vehicles of different types and weights, according to the costs they generate for the road network.

Mr Brownlee has also today announced regulations for new road user charges vehicle types and weight bands and exemptions. These are part of the new road user charges system that will come into effect on 1 August 2012.

“Changing vehicle weight definitions means all vehicle types will have a different charge.

“Some individual vehicles will cost more to operate and some less than they do at present.”

The effect of the new types and weight bands is relatively small for lighter vehicles, but may result in major differences in charges payable for vehicles of over six tonnes gross vehicle mass.

All revenue from petrol excise duty and road user charges goes into the National Land Transport Fund along with revenue from motor vehicle registration and licensing fees. The fund was approximately $2.65 billion 2010/11 and was spent on the following activities:

How revenue from petrol excise and
road user charges is spent
% of National Land Transport Fund
New and improved State highways36
Local road construction, renewal and maintenance 23
Renewal and maintenance of State highways18
Road policing10
Public transport services and infrastructure9
Other transport related activities4

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Madrid Climate Talks: Decade Ending 2019 Likely To Be Hottest On Record

Exceptional global heat driven by greenhouse gas emissions mean this decade will most likely go down as the warmest on record, according to the World Meteorological Organization...

The agency also finds that 2019 is on track to be the second or third warmest year in history, with the global average temperature during January through October, roughly 1.1 degrees Celsius above the pre-industrial era.

“If we do not take urgent climate action now, then we are heading for a temperature increase of more than 3°C by the end of the century, with ever more harmful impacts on human wellbeing.” More>>

 

NZ First Conflicts Of Interest: New Details Around Timeline

New information has emerged showing it was the New Zealand First chief of staff who identified potential conflicts of interest between a forestry company and two senior government ministers, sparking a series of declarations. More>>

Earlier:

Donations:

Five New Cancer Meds In Six Months: Pharmac Funds More Cancer Medicines, Faster Assessment

PHARMAC has confirmed that two new medicines – olaparib for ovarian cancer and fulvestrant for breast cancer – have been approved for funding... Rituximab and bortezomib, which are already funded, have also been approved for widened access following successful commercial proposals from new suppliers. More>>

ALSO:

Gordon Campbell: On Stoking Fears About Cannabis Law Reform

It was always going to be hard to have a rational debate on cannabis reform. Far easier for politicians to win votes by stoking alarm... More>>

ALSO:

Tūhoronuku Mandate Recognition Ends: "New Opportunity" For Ngāpuhi Treaty Negotiations

The Crown is providing an opportunity for the hapu of Ngāpuhi to rebuild its framework from the ground up for collective negotiations to deal with its historical Treaty claims... More>>

ALSO:

Pike River: Next Phase Of Recovery Underway

“Fresh air will be pumped into the Pike River Mine drift this week, following acceptance of the plan for re-entry beyond the 170m barrier by New Zealand’s independent health and safety regulator WorkSafe." More>>

ALSO:

Peters Stoic: Russia On Afghan Firing Range Deaths

The foreign minister won't be calling in the Russian ambassador concerning comments made about New Zealand soldiers in Afghanistan. In a media briefing late last month, Russian Foreign Ministry spokesperson Maria Zakharova said New Zealand must investigate crimes against civilians. More>>

ALSO:

Christchurch Call: Online Crisis Response Workshop In Wellington

Governments and tech companies are holding a two-day workshop, hosted by YouTube/Google in Wellington, to test the Christchurch Call Shared Crisis Response Protocol. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels