Tolling reforms and road user charges (RUC) for all vehicles by 2027 is part of a new revenue action plan outlined by the Government to target critical transport infrastructure.
Transport Minister Simeon Brown says the plan will leverage private sector innovation and expertise and create a roadmap to help deliver projects sooner.
“Delivering infrastructure to increase productivity and economic growth is a key priority for the Government.
“With New Zealand facing a prolonged infrastructure deficit, we need to ensure we have the funding and financing tools needed to support this growth,” Brown says.
The plan follows the reintroduction of the Roads of National Significance (RoNS) programme and aims to introduce the following:
- Make better use of existing funding tools for the National Land Transport Fund (NLTF).
- Reform tolling legislation to support bringing forward infrastructure investment.
- Unlock new funding tools, including value capture.
- Transition all light vehicles to road user charges by as early as 2027.
“The NLTF is under increasing pressure and is not sustainable. Taxpayers have had to top up the fund and take on more debt just to pay for the infrastructure they need. It’s clear that New Zealand’s current funding model isn’t fit for purpose,” Brown says.
“Reforming our approach to funding and financing infrastructure provides certainty for New Zealanders and the transport sector. Alongside our RoNS and major public transport projects, these reforms establish a clear infrastructure pipeline.”
Speaking at the Building Nations Conference, Brown confirmed the Government’s revenue action plan will result in a greater focus on user-pays.
“When users pay for a service, they aren’t just participants – they become customers, and customers naturally expect and demand the highest level of service.
“As part of the National-ACT coalition agreement, we are transitioning the light vehicle fleet to road user charges (RUC), and away from fuel tax, by as early as 2027.
“Transitioning to RUC will ensure that all road users are contributing fairly to the upkeep of our roads, regardless of the vehicle they drive.
“Cabinet will also explore reforms to tolling legislation and make decisions this year. We expect that NZTA will consider tolling to construct and maintain all new roads, including the Roads of National Significance, and that the Government will support all recommendations.
“As part of this, NZTA will soon begin consultation on new tolling proposals for the Takitimu North Link RoNS, the Manawatū Gorge, and the Ōtaki to north of Levin RoNS. These corridors offer significant benefits for Kiwis and freight, and it makes sense for those who benefit to contribute towards these projects.
“The use of public private partnerships (PPPs), ‘build, own, operate, transfer’ equity finance schemes, and value capture, will also enable the delivery of infrastructure in a more efficient manner.
“We have inherited a transport system in need of investment, without the appropriate funding tools to pay for it. Our revenue action plan will result in infrastructure being delivered for New Zealanders sooner and funded by those who benefit most,” Brown says.
