Proposed “Motorway User Charge” – already in place for the freight sector

The freight sector is not opposed to a Motorway User Charge road as an element of a package to address Auckland’s transport infrastructure funding shortfall, says National Road Carrier chief executive David Aitken.

However, he points out that the freight sector already pays directly for using transport infrastructure through Road User Charges (RUC).

He was commenting on the Alternative Transport Funding Group’s report finding that if Aucklanders want improvements to the transport system they must decide between higher rates and fuel taxes or being charged to use the motorway.

“While we are not opposed to paying our fair share of the funding shortfall to meet much needed transport infrastructure, the two pathways put forward by the Transport Funding Group are obviously high-level and in-principle.

“In terms a principled approach that is fair to everyone, I expect most freight operators would agree that the biggest contributor to raising the required investment should be the users; i.e. transport system users. However, the value for money and fairness in practice of any Motorway User Charge scheme will need to be tested in terms of its impact on the freight sector and customers.”

A $4 charge for each freight vehicle trip ($2 for cars) on the motorway network may seem reasonable if there are measurable benefits, such as a faster delivery trip and giving certainty to the building of critical infrastructure such as the East West Connection with speed and urgency. “But when a freight operator is making five or six return trips a day to deliver goods from, say, the Port in central Auckland and a distribution centre in Southdown the cost quickly adds up, and it is likely that customers will be asked to pay.

“On top of a Motorway User Charge are freight operators also going to be expected to continue to pay a RUC?

Mr Aitken, a member of the Alternative Transport Funding Group, agreed that Auckland needs to make faster progress to build critical infrastructure, and how it is funded should be simple, transparent, fair and accountable. “To ensure fairness to the freight sector, some rationalisation between the proposed Motorway User Charge and the current RUC system is one of the issues that will need to be carefully looked at,” he concluded.

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