Progress on RUC charges

The government is making progress on switching New Zealand’s 3.6 million light petrol vehicles to road-user charges (RUC).

It launched a request for information on November 24 for paying for the fees electronically and wants to hear from companies on making the changeover easy. 

“Our transport funding system must keep pace with the way Kiwis pay their bills,” says Chris Bishop, Minister of Transport. “The current framework is out of date and still relies on paper licences.

“Modernising RUC will allow for more technology options, including systems already built into modern vehicles. Road users will be able to opt in to using this technology to make it easier for them to pay, but will also have the option of manual alternatives.

“Any solutions will be required to comply with the RUC Act, which contains strong privacy safeguards and limits what information can be accessed.”

The Land Transport (Revenue) Amendment Bill before parliament will pave the way to open the RUC market to “wider competition”.

The coalition would like to see a mix of businesses get involved. This could include tech-focused companies offering software, telematics and e-systems to manage charges.

It may be companies that combine payments with other services, such as vehicle insurers, or businesses companies that could sell RUC over the counter, like fuel companies.

“New services could include solutions that enable people to keep track of odometer readings and receive reminders through to full enabling automated purchases,” adds Bishop.

“This work is part of a reform programme to future-proof transport funding. As our fleet changes, so too must the way we fund our roads.”