Joyce Puts Kybosh On Road Network Access Fee
May 7th, 2009
Transport Minister Steven Joyce has put the kybosh on the recommendation for a road network access fee to replace the current vehicle licence fee, calling it untenable and an unfair imposition on those who didn’t drive much. The Road User Charges Review Group noted the licence fee had increased by $1 since 1992, and wanted the access fee to treble this number, saying it would be in line with inflation. Joyce, who inherited the review from the previous Govt, says a proposal to retain the current RUC for diesel vehicles needs more work.
The group, made up of accountants James Hill and Warren Young, and former Maersk NZ MD Tony Gibson, concluded an enhanced road user charge system would avoid the costs a diesel tax would impose on non-transport users. Along with this, the panel advocated a move towards an electronic system which would cut compliance costs.
Road Transport Forum chief Tony Friedlander is disappointed the review didn’t recommend a diesel tax, but pleased the system looks set for a shake-up. He called the review a vindication of the industry’s protest last year. One recommendation given the immediate thumbs up: a six week notice period for any future increases in RUC rates.
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Duncan Cotterill