Latest news with #TransportationMinister
RNZ News
07-08-2025
- Automotive
- 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.
Bloomberg
07-07-2025
- Politics
- Bloomberg
Russia Probes Suicide After Ex-Transport Minister Found Dead
Former Russian Transportation Minister Roman Starovoit died in an apparent suicide, the country's investigative committee said in a statement on Monday. He was found in his car in a Moscow district with injuries from a gun shot, according to the committee. The leading theory of the investigation is death by suicide.
CTV News
04-06-2025
- General
- CTV News
N.B. government says adding sidewalk to resurfaced Miramichi bridge would 'throw it out of balance'
The New Brunswick government says adding a sidewalk to resurfacing plans on Miramichi's Centennial Bridge would throw the entire span 'out of balance.' 'It's not that I don't want a sidewalk,' said Transportation Minister Chuck Chiasson, to reporters on Wednesday. 'A sidewalk has to be a separate project, because the safety standards of today kind of dictate what we need to do to rehab that bridge.' On Sunday, about 100 demonstrators gathered on the Centennial Bridge to protest refurbishment plans that don't include a sidewalk. 'The actual sidewalk cannot be attached to the bridge because it will throw it out of balance. It has to be supported from the piers,' said Chiasson. 'We have to have a certain lane width. We have to have certain widths of a breakdown lane and then we have to have obviously the barriers that keep people from driving off the side of the bridge.' Chiasson said the provincial government was speaking with the municipality about the possibility of adding bus passes and water taxis, to address accessibility issues for pedestrians once the refurbishment is complete. In April, the Department of Transportation and Infrastructure said the sidewalk was removed from bridge refurbishment plans due to financial restraints. On Friday, MLA Michelle Conroy said removing sidewalks from the bridge's refurbishment plan would negatively impact the community. 'The people of Miramichi deserve the independence to safely walk across that bridge,' said Conroy. An estimated 13,000 vehicles cross the Centennial Bridge daily. A full shutdown of the 58-year-old bridge, initially scheduled for this summer, has been delayed to 2026. Bridge Protest Demonstrators are pictured on the Centennial Bridge in Miramichi, N.B., on June 1, 2025. (Nick Moore/CTV Atlantic) For more New Brunswick news, visit our dedicated provincial page.
CTV News
14-05-2025
- CTV News
Prince Edward Island launching a traffic route planner for road construction season
Vehicles are pictured on a rural road in Prince Edward Island. Prince Edward Island is launching an online resource to help drivers plan their routes as the weather warms, traffic increases and the busy road construction season begins. 'Stay in the Loop, Plan Your Route' will keep motorists up to date on road and bridge construction by county, said a Wednesday news release. The resource includes access to free planning tools, instructional videos and useful information about road and safety projects. 'Offering clear, timely information supports Islanders, businesses and visitors, providing the certainty and predictability they need to plan effectively,' said Transportation and Infrastructure Minister Ernie Hudson. 'We want to minimize disruptions, increase smoother commutes, and support an effective and safe road system for everyone.' Information will also be available at Access PEI locations. Prince Edward Island's road construction season typically begins during the May long weekend and continues to early November. The province said weather and a porous sandstone road base restrict heavy equipment use during certain times of year. The province preplans construction to minimize disruptions, said the release. Residents and visitors can visit the Prince Edward Island website for information about upcoming construction projects and subscribe to receive travel advisories. For more P.E.I. news, visit our dedicated provincial page.
CBC
08-05-2025
- Automotive
- CBC
Islanders asked to help shape safer roads on P.E.I. for the next decade
Social Sharing The provincial government is looking to launch a new 10-year strategy on road safety, but it's asking Islanders to weigh in first. The province is developing a plan called Pathways to Highway Safety, aimed at reducing traffic collisions, improving infrastructure and making roads safer for Islanders. An online survey is now open to gather feedback on topics like road use, safety concerns and driving behaviours. Responses will help shape the strategy, which is expected to be released in 2026. All Islanders, including residents, commuters and other road users, are invited to take part in the survey, which is available in both English and French until July 4. Parts of the plan will focus on addressing dangerous drivers and making highways safer. Transportation and Infrastructure Minister Ernie Hudson said the 10-year strategy could potentially lead to changes in provincial legislation and regulations. "Certainly an aspect that I would anticipate is changes in legislation and… subsequent to that, changes in the regulations associated with the legislative changes," Hudson told reporters Wednesday. "But are there other things that we can do with regard to just for example, highway markings, things along that line. And I know that there have been initiatives taken by the department such as the reflective strips that you see in different areas of the province, that are of a major help." He added the report will also look at what other jurisdictions are doing, not just legislatively but in other areas as well, such as highway markings. P.E.I. passed legislation four years ago to allow for the use of photo radar to deter speeders, but it's never been brought into effect. There is currently a push to implement automatic roadside suspensions for impaired drivers.
