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


Gordon Campbell: On National’s Ongoing Problems With Abortion


Despite Christopher Luxon’s assurances to the contrary, there is no such thing as “settled law” in New Zealand. Apart from the six provisions that are constitutionally entrenched, legislation can always be amended or overturned by a simple majority vote within our single chamber of Parliament. Luxon’s repeated use of the term “settled law” has been particularly tone deaf, given that several of the US Supreme Court justices used that very same term during their confirmation hearings...
More>>



 
 

Government: New Measures To Help Manage COVID-19 As Country Stays At Orange
The Government is taking action to help reduce the spread of COVID-19 in schools and early childhood services, COVID-19 Response Minster Dr Ayesha Verrall and Associate Education Minister Jan Tinetti announced today... More>>

Prime Minister: Remarks At NATO Summit
It is a rare thing to have New Zealand represented at a NATO Summit. While we have worked together in theatres such as Afghanistan, and have been partners for just on a decade, today represents an important moment for our Pacific nation... More>>

Government: Joint Press Release With President Of The Govt Of Spain Pedro Sánchez & PM Of New Zealand
On June 28, 2022, a meeting took place in Madrid between the President of the Government of the Kingdom of Spain, Pedro Sánchez Pérez-Castejón, and the Prime Minister of New Zealand, Jacinda Ardern, who was visiting Spain... More>>



Greens: Alcohol Harm Minimisation Bill Pulled From Biscuit Tin

After years of research and advocacy, Parliament will finally consider legislation to take meaningful action on alcohol harm, says the Greens... More>>


Government: Wellington’s Rapid Transit Option Progresses To Next Stage
The Government is progressing a preferred option for LGWM which will see Wellington’s transport links strengthened with light rail from Wellington Station to Island Bay... More>>


NZ Republic: Charles CHOGM Speech Green Light For Change
“Prince Charles had made it clear in his speech to the Commonwealth Heads of Government Meeting (CHOGM) in Rwanda today that even the Royal family think it’s time for change” said Lewis Holden, campaign chair of New Zealand Republic... More>>


 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels