Latest news with #RUCs
NZ Herald
4 days ago
- Business
- NZ Herald
NZX steady as Eroad rallies on road user charge changes
'Of course, we have an earnings season starting next week, so you tend to see volumes a little lighter as people await the company announcements and guidance especially,' Sullivan said. 'US markets were positive, even though India has been hit with a higher tariff level than initially quoted. Our interest rates are buoying the market more than geopolitical instability and tariffs.' On the NZX, Eroad rallied by 26.42% today after the Government unveiled a raft of changes to the country's Road User Charges system in preparation for 3.5 million vehicles becoming liable for the charges. As has previously been signalled, the current Fuel Excise Duty is expected to be abolished in the coming years, with all vehicles moving to Road User Charges (RUCs). Eroad's share price lifted 42c to $2.01 after 3.1 million shares changed hands on turnover of $5.9m. 'Obviously they're seen as a potential frontrunner for being able to offer a solution in that area. Material uplift in volume and share price and their market cap would put them up as a NZX 50 constituent as well, so the potential to eventually be included in NZX indices.' Elsewhere, Radius Healthcare shares rose 3.90% to $0.40 on high volume of 10.4 million shares after it announced an upgrade to its projected underlying earnings before interest and tax. Sullivan said Radius doesn't seem to be able to put a foot wrong at the moment, noting its share price rose 22% in July, 22% in June and 25% in April. Chorus also had another positive day, with its share price lifting 1.21% or 11c to $9.20. Contact Energy, meanwhile, fell 0.76% to $9.10 after $11.1m in turnover was traded. US markets Wall Street stocks rose on Wednesday local time, with Apple and most other large tech companies rallying as markets largely shrugged off US President Donald Trump's latest tariff hikes. Apple piled on more than 5% after White House officials said the tech giant plans an additional US$100 billion ($168b) in capital spending in the United States. Amazon and Google parent Alphabet were among the other large tech names that also rose. 'By standing up and publicly announcing a domestic investment with President Trump, it reduces the likelihood of Trump imposing new tariff burdens on Apple,' said FHN Financial's Chris Low. The Dow Jones Industrial Average finished up 0.2% at 44,193.12. The broad-based S&P 500 gained 0.7% to 6,345.06, while the tech-rich Nasdaq Composite Index climbed 1.2% to 21,169.42, less than 10 points from an all-time record. Trump ordered an additional 25% tariff on Indian goods. The levy, which is expected to come into force in three weeks, is due to New Delhi's continued purchase of Russian oil. – Additional reporting AFP Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
Otago Daily Times
5 days ago
- Automotive
- Otago Daily Times
Concern drivers could pay more with new road user charges
Private companies will need to keep the costs of running the government's new road user charges scheme as low as possible, the AA says. The government is inching closer to replacing petrol tax with electronic road user charges on all light vehicles, in what Transport Minister Chris Bishop calls the biggest shake-up of road funding in half a century. He says it'll be fairer and will be like paying a power bill or Netflix each month and will be in place by 2027. The changes will put an end to the existing two-tier system, in which petrol users pay a fuel excise duty of about 70 cents a litre at the pump, while diesel, electric and heavy vehicles pay paper-based road user charges based on distance travelled. However, Labour says the timing of the coalition's transition to a universal road user charges system risks "clobbering" motorists with more costs. AA's policy director Martin Glynn said his organisation was also worried about how much motorists would have to pay under the new scheme. He told Morning Report he was unsure if it would be more expensive. At present the minimum road user charge kicked in once a light vehicle had travelled 1000km. That was $76 and $12-$13 for an administration fee. With private providers being brought in to run the revised scheme they would need to be making money, Glynn said. "We really want to see the administration costs be as low as possible." He agreed with the minister that with more vehicles becoming more fuel efficient, the current petrol tax penalised those with older vehicles. "It's become more unfair over time and it's going to become more unfair if we don't change." The current system of buying RUCs was "a bit clunky", he said. Those using diesel or a heavy vehicle purchased RUCs online from the NZ Transport Agency or they could go to an agent. Motorists needed to keep an eye on their odometer to ensure they stayed up to date. The other problem was the the RUC came in the mail and needed to be displayed on the dashboard. AA supported Bishop's plan to make the system fully electronic. Annual warrant of fitness checks were the main way to ensure compliance at present. "But it's fair to say it's difficult to enforce being an annual system so there's a fair degree of evasion and avoidance and that's something that will have to be addressed in the transition." Heavy vehicles already have an ERUC, a device in the trucks that monitors kilometres and location.
Otago Daily Times
5 days ago
- Automotive
- Otago Daily Times
Could motorists pay more under road user charges?
Private companies will need to keep the costs of running the government's new road user charges scheme as low as possible, the AA says. The government is inching closer to replacing petrol tax with electronic road user charges on all light vehicles, in what Transport Minister Chris Bishop calls the biggest shake-up of road funding in half a century. He says it'll be fairer and will be like paying a power bill or Netflix each month and will be in place by 2027. The changes will put an end to the existing two-tier system, in which petrol users pay a fuel excise duty of about 70 cents a litre at the pump, while diesel, electric and heavy vehicles pay paper-based road user charges based on distance travelled. However, Labour says the timing of the coalition's transition to a universal road user charges system risks "clobbering" motorists with more costs. AA's policy director Martin Glynn said his organisation was also worried about how much motorists would have to pay under the new scheme. He told Morning Report he was unsure if it would be more expensive. At present the minimum road user charge kicked in once a light vehicle had travelled 1000km. That was $76 and $12-$13 for an administration fee. With private providers being brought in to run the revised scheme they would need to be making money, Glynn said. "We really want to see the administration costs be as low as possible." He agreed with the minister that with more vehicles becoming more fuel efficient, the current petrol tax penalised those with older vehicles. "It's become more unfair over time and it's going to become more unfair if we don't change." The current system of buying RUCs was "a bit clunky", he said. Those using diesel or a heavy vehicle purchased RUCs online from the NZ Transport Agency or they could go to an agent. Motorists needed to keep an eye on their odometer to ensure they stayed up to date. The other problem was the the RUC came in the mail and needed to be displayed on the dashboard. AA supported Bishop's plan to make the system fully electronic. Annual warrant of fitness checks were the main way to ensure compliance at present. "But it's fair to say it's difficult to enforce being an annual system so there's a fair degree of evasion and avoidance and that's something that will have to be addressed in the transition." Heavy vehicles already have an ERUC, a device in the trucks that monitors kilometres and location.
NZ Herald
6 days ago
- Automotive
- NZ Herald
How the Government is preparing to ditch petrol tax, move all cars to road user charges
This includes: Removing the requirement to carry or display RUC licences, allowing for digital records instead. Enabling the use of a broader range of electronic RUC devices, including those already built into many modern vehicles. Supporting flexible payment models such as post-pay and monthly billing. Separating NZ Transport Agency Waka Kotahi's (NZTA) roles as both RUC regulator and retailer to foster fairer competition. Allowing bundling of other road charges like tolls and time of used based pricing into a single, easy payment. Bishop said the intent is to make paying for RUCs 'user-friendly' and similar to paying a power bill online or a Netflix subscription. Currently, the system is mostly paper-based and drivers have to monitor their odometers to check what distance they have driven. It also requires owners to buy RUCs in 1000km chunks. 'We're not going to shift millions of drivers from a simple system at the pump to queues at retailers. 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. 'A handful of e-RUC companies already do this for about half of our heavy vehicle fleet and there are several companies, both domestic and international, with innovative technology that could make complying with RUC cheaper and easier.' He said the abolition of Fuel Excise Duty, or petrol tax, and the move to all vehicles paying RUCs based on distance and weight 'is the biggest change to how we fund our roading network in 50 years'. 'Right now, New Zealanders pay Fuel Excise Duty [FED] of about 70c per litre of petrol every time they fill up at the pump with a petrol car. Diesel, electric, and heavy vehicles pay Road User Charges based on distance travelled. 'This revenue is funnelled into the National Land Transport Fund, which funds the building of new roads and maintaining our existing ones.' He said the move to all vehicles paying RUCs comes as the relationship between petrol consumption and road usage is 'fast breaking down'. 'For example, petrol vehicles with better fuel economy contribute less FED per kilometre towards road maintenance, operations, and improvements,' Bishop said. 'We are also seeing a fast uptake of fuel-efficient petrol hybrid vehicles. In 2015, there were 12,000 on our roads, while today there are over 350,000. '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.' The legislation is expected to pass in 2026 which will then be followed by an updated Code of Practice for RUCs providers. '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,' Bishop said. 'By 2027, the RUC system will be 'open for business', with third-party providers able to offer innovative payment services and a consistent approval process in place. 'At this stage, no date has been set for the full transition of the light vehicle fleet. That's a deliberate choice, as we're focused on getting the system right rather than rushing its rollout.'
