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RUC changes will reduce compliance, transport cost
Hon Steven Joyce
Minister of Transport
7 July 2010 Media
Statement
RUC changes will reduce
compliance, transport costs
Cabinet has approved changes to the road user charges (RUC) system which are designed to simplify and modernise a key part of New Zealand’s transport operation.
Transport Minister Steven
Joyce says the changes will reduce compliance costs for
transport operators and ultimately reduce transport costs
for our businesses and exporters.
The reforms represent
the most significant changes to the RUC system since it was
introduced in 1978.
The reforms comprise:
• Changing
the current system whereby heavy vehicle operators nominate
a licence weight for RUC purposes to one where each vehicle
will have its own permanent RUC weight.
• Removal of
the time licence system and modernisation of the list of
vehicles exempted from road user
charges.
• Improvements to the system overall to enable
greater compliance.
• An improved regulatory framework
for electronic management systems.
• A fairer, simpler
and less costly structure in relation to offences and
penalties, particularly for light vehicles.
Mr Joyce says
the changes will make the system easier to understand and
fairer for all those who pay RUC.
“Changing the
definition of licence weights, removing the confusing time
licence system and simplifying the list of exempted vehicles
will all reduce compliance costs for businesses and simplify
administration processes for industry and
government.
“The NZ Transport Agency will also be able to take greater advantage of modern internet technology in administering RUC payment channels.”
Government concern
about RUC evasion - conservatively estimated by officials at
$30 million a year - will also be addressed.
“Currently honest payers of RUC are subsidising those
who evade payment. Changes to legislation will remove a
number of evasion opportunities and encourage timely
payment, making the system fairer for all.”
A review of
the RUC cost allocation model will precede legislative
changes. This review will ensure that RUC is allocated
appropriately between users and make the model simpler and
more transparent.
Changes to the RUC system already implemented include the requirement to give six weeks’ notice of RUC increases and legislation enabling electronic distance recording and electronic display of RUC licences.
A new road user charges Bill will be introduced to Parliament later this year
ENDS
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