Policy change for EVs welcome

The Motor Trade Association (MTA) is welcoming the government extending road user charges (RUC) to electric vehicles (EVs), saying the move will level the playing field and help New Zealand’s roads to get more much-needed maintenance.

From April 1, owners of light battery electric vehicles (BEVs) will be charged $76 per 1,000km and a reduced rate of $53 per 1,000km will apply to plug-in hybrids (PHEVs). 

Lee Marshall, MTA’s chief executive, says it had advocated for the policy change and it is pleased the government has listened to industry on the matter.

“There’s no doubt that the exemption from RUC for EVs has helped increase the number on our roads,” he adds.

“That’s been welcome and it’s now time that with the increase in the size of our electrified fleet past the two per cent threshold, drivers of EVs help pay for the upkeep of the roads they travel on.”

Marshall, pictured, continues that the challenge for officials is to ensure the proceeds of the RUC go where they are needed, which he says is on roads.

He also notes weather events of the past 12 months have accelerated the deterioration of our roads, and says it is likely cyclones and storms will occur more frequently in the future and risk further damage to the network.

“The founding principle of the National Land Transport Fund is that it focuses solely on roads,” he explains.

“In 2020, the law was changed to allow these funds to pay for rail. While rail has an important role to play in our transport network, the principle that road users only pay for roading projects is the correct one, and we trust the government to follow through on that.

“Roads are still the way most New Zealanders travel, for work or pleasure, so it’s imperative we have roads that are strong, resilient, and easily repaired.”

The MTA says it looks forward to more details about the extension of RUC being released by the government and is ready to help “communicate and facilitate the changes, and advise for steps on a smooth introduction”.