Going digital welcome move

The Motor Trade Association (MTA) says the government’s plans to apply electronic road user charges (eRUC) to all light vehicles will deliver a “more equitable tool” to cover the costs of road use.

The coalition has announced a number of legislative changes it expects to make next year that will eventually lead to all cars paying eRUC rather than fuel excise duty.

Chris Bishop, Minister of Transport, outlined the government’s plans on August 6 and has described them as the biggest change to how New Zealand funds its roads in 50 years.

The move has received widespread support from the automotive industry, including James McDowall, MTA’s head of advocacy.

“As we advised last year in our response to the draft Government Policy Statement, MTA commends the move towards universal road user charges,” says McDowall, pictured.

“It is a more equitable tool to charge for road use, which will confront the reality of increasing fuel efficiency resulting in less revenue from road tax on a per kilometre basis. 

“We strongly endorse the implementation of an electronic RUC system, and are heartened to see the minister share our views and signal a move away from messy paper-based systems.” 

He adds that fairness for all motorists on our roads should be the end goal and applying RUC universally will play an important role. 

“Our fleet is changing, and it’s appropriate that the way we pay for the upkeep of the roads we all travel on changes too.”