RUC legislation to cut transport, business costs
Transport legislation to modernise and simplify the road user charges (RUC) system has commenced its first reading debate in Parliament.
Transport Minister Steven Joyce says the changes introduced in the Road User Charges Bill will reduce compliance costs for transport operators and ultimately reduce transport costs for our businesses and exporters.
He says the provisions in the Bill represent the most significant changes to the RUC system since it was introduced in 1978, and they form part of the government’s regulatory reform agenda to boost business confidence by cutting red tape.
“These changes will make the system easier to understand and fairer for all those who pay RUC.”
The provisions in the Bill include:
- Giving every heavy vehicle a permanent RUC weight and discontinuing supplementary licences
- removal of the time licence system
- a fairer and simpler structure in relation to offences and penalties, particularly for light vehicles
- an improved regulatory framework for electronic RUC management systems
- improvements to the system overall to enable greater compliance
- the ability for statutory responsibility for RUC collection to be transferred to the NZ Transport Agency (NZTA)
- Mr Joyce says 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.
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,” says Mr Joyce.
“A review of the RUC cost allocation model is also being undertaken and will be completed before the new legislation is implemented.
“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.
The Bill is expected to pass mid - 2011 and come into effect mid - 2012.
Further information on the Road User Charges Bill is available at www.transport.govt.nz.