Road freight association Transporting New Zealand is urging the Government to remove provisions in the
Land Transport (Revenue) Amendment Bill that would allow existing roads to be tolled and enable heavy vehicles to be forced onto toll roads. Submissions on the Bill closed this week.
Transporting New Zealand Chief Executive Dom Kalasih says that they support tolling when it helps deliver new infrastructure sooner, but the Bill’s proposed expansion into “corridor tolling” of existing roads risks being seen as double charging.
“Road users have already paid for existing roads through fuel taxes, road user charges, registration fees and general taxation. Tolling existing roads will be seen as double dipping,” Kalasih says.
Transporting New Zealand told the Transport and Infrastructure Committee in its written submission that tolling should be reserved for new roads, where users can see a clear benefit from paying a toll, such as improved travel times, safety and resilience.
“Tolling has an important role to play in delivering safe, modern roading infrastructure. In the past 18 months we have submitted in support of tolling Belfast to Pegasus Motorway and Woodend Bypass, Ōtaki to North of Levin State Highway Project, Tauranga Eastern Link Toll Road and Takitimu North Link.”
“However, the current Bill would allow existing roads that have their ‘efficiency enhanced’ by a construction of a new road to be included in a tolling scheme. The drafting is deliberately broad, and leaves Transporting New Zealand with serious concerns about what existing roads we could see proposed for tolling.”
The submission also opposes proposals that would allow the Minister to prohibit heavy vehicles from using alternative routes in favour of tolled roads.
“Freight companies are already highly motivated to use faster, safer routes because time is money. Existing toll roads show that heavy vehicles largely use toll roads without any need for a mandate,” Kalasih says.
“Operators and drivers are in the best position to decide what route to take. There are legitimate reasons why an alternative route may be the better fit for a particular job, including fuel use, gradient, rest and refreshment facilities, and route efficiency.”
The Bill allows for freight deliveries and trucks travelling to premises located on alternative routes to occur. However, Transporting New Zealand says the proposal would create a significant compliance burden and it will be difficult for Police to identify trucks not travelling on those routes for bona fide reasons.
Transporting New Zealand has recommended corridor tolling and the power to restrict heavy vehicles from using alternative routes be removed from the Bill. If the Bill proceeds with route restrictions, Transporting New Zealand says heavy vehicle toll rates should be capped at no more than three times the light vehicle rate, to limit unreasonable fee setting.
While opposing the Bill’s tolling reforms, Transporting New Zealand supports the Bill’s Road User Charges modernisation package, including changes that will enable greater use of technology, more flexible payment options, and the removal of the requirement to display a RUC label.
“These RUC changes will reduce unnecessary administration and compliance costs for transport operators and motorists, and support the transition toward a universal RUC system over time,” Kalasih says.
Transporting New Zealand has asked officials to clarify how the Bill will apply to in-vehicle telematics and whether intermediary service providers are captured within the RUC provider framework.
The Transport and Infrastructure Select Committee will consider submissions ahead of the Bill’s second reading.
