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Road User Charges System—Improvements

Thursday 22 July 2010 Hansard source (external site)

Macindoe12. TIM MACINDOE (National—Hamilton West) Link to this
to the Minister of Transport

What efficiency improvements is the Government making to the road transport system?

JoyceHon STEVEN JOYCE (Minister of Transport) Link to this

The Government has announced major changes to the road-user charges system that will simplify and modernise a key part of New Zealand’s transport operation. Changing the definition of licence weights, removing supplementary licences, removing the confusing time licence system, and simplifying the list of exempted vehicles will all reduce compliance costs and simplify administration processes for industry and Government. This will reduce transport costs for our businesses and help make getting exports to markets cheaper.

MacindoeTim Macindoe Link to this

What has been the response of the transport industry to these changes?

JoyceHon STEVEN JOYCE Link to this

The transport industry has been very positive about these changes. I have spoken to a number of operators who are very enthusiastic, and the Road Transport Forum said the Government has “recognised the inherent waste and inefficiency in the current RUC system. It is very refreshing to be working with Government on these issues for the overall benefit of the economy.” Truckers already receive 6 weeks’ notice of any road-user charge increases, which the previous Government refused to do, and we have allowed for electronic distance recording and electronic display of road-user charge licences. In addition, the revenue from road users is now largely invested back into the roading network. By our creating a modern, fairer, and more efficient road-user charge system, the industry is free to get on with the job of helping New Zealand grow.

HughesHon Darren Hughes Link to this

Why does he choose to put a—

BrownleeHon Gerry Brownlee Link to this

It’s Youth Week.

HughesHon Darren Hughes Link to this

I think you have had your day, Gerry.

SmithMr SPEAKER Link to this

I have to be able to hear the supplementary question, and the member’s own colleague, the Minister, has to be able to hear the supplementary question.

HughesHon Darren Hughes Link to this

Why does he choose to put greater emphasis on getting people to their holiday homes more efficiently, at the expense of other transport modes that would also result in greater efficiency of the road transport system, such as committing to an airport-to-city rail link for the city of Auckland?

JoyceHon STEVEN JOYCE Link to this

The member opposite once again shows a disturbing misunderstanding of economics and economic efficiency. The reality in this country is that 85 percent of passenger transport occurs in private vehicles, and that will continue to occur. The highway that the member referred to is massively more used than almost the entire current rail system in Auckland.

MoroneySue Moroney Link to this

Is he aware that around 60 people met in Te Kauwhata this week to support the establishment of a passenger train service between Hamilton and Auckland, and does he agree that that service could improve the efficiency of road transport for those stuck in traffic on Auckland’s southern motorway every morning and every afternoon?

JoyceHon STEVEN JOYCE Link to this

I am doing this from memory, but my understanding is that the cost of subsidising a passenger on a train from Hamilton to Auckland is something like $15,000 or $16,000 per trip. It would be cheaper to hire a helicopter to fly someone from Hamilton to Auckland than actually to subsidise that train service.

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