Road Transport Forum's actions 'outrageous'

Transport Minister Annette King says she is outraged Road Transport Forum members are not only trying to avoid paying a fair share of the cost of building and maintaining New Zealand’s roading system, but that the forum is organising a protest that will disrupt the lives of people who always pay their fair share.

 

“If trucking companies disrupt the travel plans of motorists and other commuters on Friday morning, as they threaten to, then the only people who suffer will be all those New Zealanders who pay their fair share of roading costs through petrol excise duty.”

 

Ms King says the Road Transport Forum is failing to tell the public a number of telling facts:

 

· The increase in the Road User Charge (RUC) announced this week is only the second increase for vehicles over six tonnes since 1989 (the first was last year).

· Last year, when three days’ notice of the RUC increase was given to trucking operators, they pre-purchased $17.5 million of RUC licences at the old rate, thus denying the taxpayer expected revenue for the roading programme.

· All revenue from the RUC is now dedicated to the National Land Transport Programme (NLTP), along with all revenue from petrol excise duty and motor vehicle registrations. “The RUC is the means by which trucking companies pay their share. The respective shares for all road users have been carefully worked out over many years to achieve fairness in relative contributions that petrol and diesel users make.”

· In 2008-09 the Government is allocating $2.7 billion for New Zealand’s largest-ever NLTP. “Trucking companies derive enormous benefit from the investment we are making in new state highways and maintaining existing roads, and obviously the wear and tear caused by trucks far exceeds that caused by cars. Without all road users paying their fair share, this level of investment cannot continue to be sustained.”

· The forum’s own research reveals that a 10 percent increase in the RUC would add roughly just one percent to operating costs.

· The forum says “I have broken a promise to give one month’s notice of an increase, but does not say that the promise I actually made was to amend legislation that will in the future address notice issues. That amendment is currently being drafted, but was not ready in time for this year, and nor do I know if I will have parliamentary support for it.”

· “The Forum does not mention the support I am giving trucking companies, and the criticism I am receiving, in allowing and defending the current trial of heavier trucks. If the trial is successful, companies will be able to carry heavier loads more cheaply.”

 

Ms King said the increases will mean that for a small diesel car it will cost $3.28 more to drive 1000 kilometres, or $32.80 more for a typical year’s motoring of 10,000 km. A larger vehicle, such as a three tonne SUV, will cost an extra $49.20 per 10,000km, a typical five tonne truck will pay an additional $53.80 per 10,000 kilometres, while a 23 tonne four-axle truck can expect to pay an additional $198.

 

“As diesel is not subject to any taxation apart from less than half a cent per litre, compared to the 42.524c per litre petrol users pay, these increases to RUC will help restore the balance between charges paid by diesel and petrol users so diesel users make a fairer contribution to the National Land Transport Fund.”