60 emergency calls in upper North as wild weather hits
Senior Government minister Chris Bishop says he was frustrated by the politicisation of Stan Walker's performance at the Aotearoa Music Awards, when he said 'what a load of crap".
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The Spinoff
16 hours ago
- The Spinoff
Ōtaki to Levin cost blowout shines a spotlight on NZ's infrastructure woes
With a budget that has more than doubled, the road has little hope of recouping costs through tolls, writes Catherine McGregor in today's extract from The Bulletin. One very expensive road The cost of the Ōtaki to north of Levin (O2NL) highway has ballooned to $2.1 billion, more than double the original 2020 estimate of $817 million, despite the fact that construction has yet to begin in earnest. Infrastructure minister Chris Bishop has laid the blame squarely on the previous government, claiming 'it was basically costed on the back of an envelope very quickly so Grant Robertson could announce projects at the start of election year'. In a bid to contain spiralling costs, NZTA proposed a series of pared-back design changes earlier this year, including replacing an interchange with a roundabout. But those proposals were strongly opposed by Horowhenua residents and, as 1News reported in June, ultimately scrapped. NZTA told BusinessDesk's Oliver Lewis (paywalled) that reconsenting the changes would have added more delays and costs than simply sticking to the original plan. Tolls won't bridge the funding gap To help recoup some of the cost, the government will impose tolls on the O2NL once it opens in 2029. But they're unlikely to make much of a dent in the final bill. The Infrastructure Commission recently told a select committee that for a toll road to pay for itself, it must cost no more than $32 million per kilometre, carry 40,000 vehicles a day, and cut travel time by 15 minutes. As Thomas Coughlan writes in the Herald (paywalled), O2NL fails on at least two counts: it will cost about $85m per km and is expected to carry more than 20,000 vehicles a day by the late 2030s. Currently, just three toll roads exist in New Zealand, all in the upper North Island. More are planned, including Penlink north of Auckland and Tauranga's Takitimu North Link, with O2NL joining that list. On Wednesday, the government announced a new digital road user charge system that should also enable the digital payment of tolls – but easier toll payments won't solve the core problem of projects that cost far more than they can return. Consensus under construction The O2NL cost blowout coincided with this week's Building Nations infrastructure conference, where politicians from both major parties repeated the familiar call for bipartisan planning on major builds. Infrastructure minister Chris Bishop says he wants 80 to 90% agreement on the long-term project pipeline. But as The Spinoff's Joel MacManus points out, high-minded talk of consensus tends to mask the cynical partisan reality. Bishop insists his concerns are about 'project selection and management', but, Joel notes, his definition of the 'right' projects tends to track closely with his party's own preferences. Labour has hardly done better: its handling of the cancelled iRex ferry project kept National in the dark about the extent of the cost blowout until after the election. 'The problem is that it is easy to say your opponents should be bipartisan in supporting your ideas,' Joel writes. 'It's harder to agree to support your opponents' ideas.' The Green roadblock The problem with the bipartisan-infrastructure dream isn't just opposing priorities, but also a deeper ideological divergence. As Richard Harman argues in the Herald (paywalled), any future Labour-led government is almost certain to include the Greens, a party that remains staunchly opposed to National's Roads of National Significance, including O2NL. The Greens believe that funding should be redirected toward rail and existing road upgrades, not carbon-intensive new highways. A recent Labour-Greens minority report on another expressway project argued that 'there is an urgent need to reduce greenhouse gas emissions, and New Zealand has a limited financial budget and a limited carbon budget'. According to Harman, this kind of objection 'transcends the purely practical and economic and veers off into ideological considerations', making lasting political consensus difficult to achieve. As long as infrastructure remains a proxy for deeper debates over climate, growth and spending priorities, bipartisan agreement may remain more aspiration than reality.
Otago Daily Times
19 hours ago
- Otago Daily Times
End of the road for fuel tax
The road is running out for using petrol taxes as the primary way to fund New Zealand's roads. Fuel tax may be simple to administer and penalise gas guzzlers more than granny cars, but change is inevitable. Last year, the government introduced road user charges (RUCs) for the growing fleet of electric vehicles. According to Transport and Infrastructure Minister Chris Bishop, fuel-efficient petrol hybrid vehicles have accelerated from 12,000 in 2015 to more than 350,000 today. Modern petrol cars are also more fuel-efficient than older vehicles. As Mr Bishop said: "It isn't fair to have Kiwis who drive less and who can't afford a fuel-efficient car paying more than people who can afford one and drive more often." In his announcement on Wednesday, Mr Bishop wisely avoided setting firm dates for this "once-in-a-generation change". While legislation could be passed next year, implementing nationwide technology changes will be much more challenging. Nevertheless, the government has signalled 2027 as the target for the system to be "open for business", with third-party providers offering payment services through a consistent approval process. Given the repeated delays in launching a national bus ticketing system and other costly tech failures and setbacks, the 2027 timeline is ambitious. Naturally, concerns have been raised about the administration costs, already a problem with the "clunky" current paper-based RUC system. The government will have to ensure private providers do not embed excessive profits for years to come. Present road user charges for light vehicles are $76 per 1000km, plus a $12 or $13 administration fee. Petrol taxes a litre are about 70c for the National Land Transport Fund (the roads), 6c for ACC, 14c for the Emissions Trading Scheme levy and GST on top. The envisioned system would allow motorists to pay online, like any other bill. Time-of-day or toll-based charges could also be included. Many new vehicles already have the necessary onboard technology. Older cars would likely require added sensors to measure distance and possibly weight. About half of heavy trucks already use electronic devices to calculate location, mileage and RUCs. If the present RUC rates were applied uniformly, they would unfairly penalise small car owners. The "light vehicle" category includes anything under 3500kg, from the top-selling Ford Ranger to the popular compact Suzuki Swift. A Toyota Corolla weighs about 1820kg. Yet, the Ranger takes up more space and causes significantly more road wear. At present, it pays more per kilometre because of higher fuel consumption. Introducing weight-based tiers within the "light vehicle" category would create complexity and anomalies at the margins. Still, the current definition is far too broad. Overhauling any system creates winners and losers, fuelling opposition. Expect robust debate as the details are worked through. Urban drivers stuck in congestion and with low-speed, stop-start driving would benefit, as they travel shorter distances for similar fuel use. Those in hilly areas could also come out ahead. Owners of older, less efficient vehicles may see their overall bills drop. Potential digital surveillance and tracking raise legitimate privacy concerns. It is easy to say that those with nothing to hide have nothing to fear. However, the brick-by-brick erosion of civil liberties and democracy in the United States is a cautionary tale about what could happen anywhere. Enforcement will be another challenge. At present, odometer readings at warrants of fitness help ensure a reasonable level of compliance, but some will likely find ways to cheat the new system. Avoiding petrol tax is harder by comparison. The announcement is no surprise. RUCs were floated before the election and included in the National-Act New Zealand coalition agreement. The AA supports the change in principle, acknowledging both its logic and its challenges. These issues must be tackled fairly and effectively along New Zealand's bumpy road to a new way of funding its roads.
RNZ News
a day ago
- RNZ News
What we know so far about the new road user charges and the end of petrol tax
The government proposes to phase out petrol taxes in favour of electronic road user charges by 2027. Photo: RNZ / Marika Khabazi Explainer - The government made it official this week that the petrol tax is on the way out, to be replaced by electronic road user charges, or RUCs, for everyone. Drivers of all light vehicles - petrol, hybrid, diesel and electric - will now pay for road use based on distance travelled and vehicle weight, instead of an extra charge at the pump. Right now, Road User Charges (RUC) only apply to vehicles not powered wholly by petrol, and all vehicles weighing more than 3.5 tonnes. An awful lot of the specifics around the new system remain uncertain, as the government considers how to implement the plan. But here's what we know so far. All of Aotearoa's 3.5 million light vehicle owners will need to pay RUC fees to help pay for road upkeep and maintenance. But exactly how the fees will be set and collected are still a work in progress. In making the announcement, Transportation Minister Chris Bishop said it was "the biggest change to how we fund our roading network in 50 years". It comes as more and more drivers use hybrids, electric vehicles or other technology. Bishop said the number of fuel-efficient petrol hybrid vehicles has jumped from 12,000 in 2015 to 350,000 today. "As our vehicle fleet changes, so too must the way we fund our roads. It isn't fair to have Kiwis who drive less and who can't afford a fuel-efficient car paying more than people who can afford one and drive more often." "This is a change that simply has to happen. The government has recognised reality and is getting on with the transition." Replacing fuel excise taxes with electronic road user charging was part of National and ACT's coalition agreement. The government's been signalling this move for some time and last year scrapped an Auckland regional fuel tax of 11.5 cents per litre . AA principal policy adviser Terry Collins said while the association thinks the changes are good in principle, "we need to see the detail". Transportation Minister Chris Bishop. Photo: RNZ / Samuel Rillstone That's one of the big question marks right now. Under the system, all vehicles would be paying for road use based on distance and their vehicle's weight, Bishop said, but no detail on the weight limits was given. The current RUC for light vehicles - under 3500kg - are $76 per 1000km. The average Toyota Corolla weighs between 1200-1500kg. Charges can widely vary for larger vehicles under the current RUC, according to NTZA's website . There's also an administration fee of $12-$13 per transaction. No costs or parameters for the new system have been announced, but just as an example under the current RUC setup, a small electric vehicle would pay more than $760 including fees for 10,000km worth of credits. Photo: RNZ / Dan Cook Again, answer unclear. Bishop said currently, petrol drivers pay a tax of about 70 cents per litre. However, the AA says that the full cost of fuel excise, duties and taxes such as GST altogether was over $1.20 per litre as of mid-2024 . There's no real way of knowing yet if the changes would automatically drop 70 cents or more from fuel prices. Legislative work toward the changes will begin next year, with the government eyeing 2027 for the new system to take place. "At this stage, no date has been set for the full transition of the light vehicle fleet," Bishop said. "That's a deliberate choice, as we're focused on getting the system right rather than rushing its rollout." The legislative plans include: "The changes will support a more user-friendly, technology-enabled RUC system, with multiple retail options available for motorists," Bishop said in announcing the changes. "Eventually, paying for RUC should be like paying a power bill online, or a Netflix subscription. Simple and easy." Bishop told ThreeNews that users could possibly pay road RUCs through an app, and log in and pay what they owed at the end of each month. The next step for the plan is changes to the Road User Charges Act 2012, and a bill will be introduced to Parliament and referred to a Select Committee for public input. "I expect to pass legislation in 2026, followed by an updated Code of Practice for RUC providers," Bishop said. "We will also engage with the market in 2026 to assess technological solutions and delivery timelines. In parallel, NZTA and Police will upgrade their systems to support enforcement in a digital environment." An example of a current road user charges permit. Photo: RNZ Bishop called the current setup for light vehicles a "clunky" system. You keep track of your odometer readings, pay for RUC in 1000km chunks and put a sticker on your windscreen that shows how many km they are good for. Once your odometer passes the number you've paid for in RUC, you need to pay for more. "We're not going to shift millions of drivers from a simple system at the pump to queues at retailers," Bishop said. "So, instead of expanding a clunky government system, we will reform the rules to allow the market to deliver innovative, user-friendly services for drivers." The AA's Martin Glynn told Morning Report that it's not the easiest system for users. "The biggest problem with it, people need to keep an eye on their odometers and see if they've used up their RUC and need to buy more. That's probably the biggest problem with it." However, the government said it wants to shift away from the "outdated" system and replace it with greater use of electronic RUC, or eRUCs. Basically, instead of having to keep track of your odometer readings and paying as you go for km credits, it's a device that does that work automatically. There are a variety in place now for current requirements. There are several approved eRUC providers for the heavy vehicle fleet of vehicles over 3.5 tonnes. "EROAD's system automatically records the distance each vehicle travels on-road and accurately records all off-road travel with its intuitive GPS-tracking capability," the website of one of the providers, EROAD, states. Infrastructure New Zealand chief executive Nick Leggett applauded the change and said it could work well with other transport charges. "User-charging is a fair, proven way to fund infrastructure. eRUC will make it easier to apply that principle consistently across all vehicles, whether petrol, diesel, electric or hybrid, and as our transport system evolves. "We also see the use of flexible payment methods and the integration of eRUC with other transport charges such as tolling and congestion pricing as sensible moves." However, there's still a lot of questions around the costs of implementing eRUCs for everyone. Would all cars be fitted with new devices or would some kind of self-monitoring system be in place for those with older vehicles? There's also been a fair bit of talk doing the rounds on social media about the idea of electronic records on vehicle travel and worries about the government tracking people. In a statement to RNZ, Bishop said there were privacy protections in place and it would remain a concern in developing the new systems. "The Road User Charges Act 2012 has existing provisions that protect privacy by limiting what RUC electronic information the RUC collector can access. "Location data can only be accessed to verify where the driver is owed a refund for off-road use. "Officials will be engaging with the market and stakeholders (including the Office of the Privacy Commissioner) on the features of potential solutions, such as cost, privacy and ease of use." The AA's Collins said it would be important to see the detail of "who has that information and what's done with it". "Everybody in the trucking industry wants to have that technology fitted. I don't think that's the case in the light fleet." Collins noted that our phones - which almost everyone has with them in their cars - are also packed with tracking technology. Other countries have managed similar systems, he said, but "it's what the data will ultimately be used for in the future that's the biggest concern". In their announcement, the government also said that private firms will take over the collection and administration of charges from NZTA, "to foster fairer competition". Tax Justice Aotearoa said they were concerned about that change and taking the responsibility away from the government. "We are deeply concerned by this initiative as using the power of the state to require citizens to pay charges decided by the state is a core function of government," Chair of Tax Justice Aotearoa Glenn Barclay said in a statement. "It should not be for the profit of anyone and it means that the details of thousands of road users will be held and managed by private organisations with no accountability back to the public." "Putting RUC in the hands of private companies, who will need to make a profit on the transactions, is a recipe for higher fees for drivers," the Public Service Association union's national secretary Fleur Fitzsimons said. All vehicles will now have to pay RUCs. Photo: RNZ / Nicky Park It's unclear. Petrol could in theory be cheaper, but will be somewhat offset by RUCs all vehicle owners must pay. "This is a once-in-a-generation change," Bishop said. "It's the right thing to do, it's the fair thing to do, and it will future proof how we fund our roads for decades to come." Collins said the distance-based changes could benefit certain drivers, such as those who own multiple vehicles that aren't actually travelling much, or boat users. "Nothing's going to be cheaper, we know that," he said. "It's like saying do you think that your cars are going to be cheaper in three years' time?" "Realistically, we want to be building a modern safe roading network and that's not cheap. All of us as road users need to contribute to that." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
