‘Major’ change for industry
The Imported Motor Vehicle Industry Association (VIA) has welcomed news of the government’s next steps towards replacing fuel excise duty with electronic road user charges (eRUC).
Greig Epps, VIA’s chief executive, says: “This is a major reform with wide-ranging implications for motorists and the vehicle industry alike
“We’re pleased to see the government taking a careful and considered approach to how this will be rolled out.”
Chris Bishop, Minister of Transport, outlined plans on August 6 for moving the whole light-vehicle fleet to eRUC .
VIA notes many of the vehicles entering New Zealand as used imports do not have built-in telematics or road-charging hardware.
It adds any proposal to retrofit such technology at the border will carry costs, not just for the devices themselves but for labour and systems integration during the compliance process.
“These costs must be taken into account if we want a system that is fair and doesn’t make everyday transport less affordable for Kiwi families,” says Epps, pictured.
The association backs the government’s recognition of the need to modernise how people pay for RUC, with supporting flexible payment models among the key legislative changes set to be made.
VIA explains the current RUC system requires large upfront payments, which many people find difficult to manage, and spreading these payments through subscription models or monthly billing will better reflect how Kiwis budget for transport.
It also supports the government’s willingness to partner with the private sector to deliver a new system but warns robust privacy protections will be essential.
Epps adds: “Collaboration with private providers can unlock innovation, but it must be underpinned by strong safeguards for individual privacy and data security.”
VIA says it looks forward to working with the Ministry of Transport and NZTA Waka Kotahi to help shape a system that works across all vehicle types, including used imports, and delivers an equitable, efficient and future-ready road funding model.
