The NZ Transport Agency has won a High Court case relating to a $532,878 road user charges (RUC) bill against Stan Semenoff Logging.
However, NZTA has withdrawn its decision to revoke Semenoff”s transport service licence.
The payment was due in January 2019 but was appealed by Semenoff which claimed only $135,365 was owed.
NZTA claimed Semenoff’s vehicle trips “were significantly over” licensed weight requirement “on numerous occasions”.
Semenoff had distance licences allowing it to carry a maximum of 44 tonnes before February 1, 2017 and 46 tonnes thereafter.
Police became concerned at the number of overweight infringement offences being committed by Semenoff and referred their concern to NZTA for further investigation, according to court documents.
Investigators found 68% of the 17,200 trips assessed were overweight during the period –around 11,690 trips.
The assessor then calculated the difference between the RUC paid for the particular trips and the charge properly payable which totalled $532,878.
Semenoff sought a review with its legal team claiming NZTA’s methodology “is totally arbitrary and bears no relation to the actual distance travelled overweight”.
Semenoff claimed the costs are “based on the period of the licence which the operator happens to have purchased and bears no or insufficient relationship to the cost which an operator’s vehicles generate on the respondent’s roading network”.
However, Justice Gordon recently upheld NZTA’s approach to calculating RUCs and said “the onus falls squarely on the operator not to overload” and “a vehicle operator is required to ensure that it has the appropriate distance licence at all times”.
NZTA regulatory services general manager Kane Patena says the decision is important as it confirms the agency’s approach to RUC assessment.
“Justice Gordon’s ruling sends a message to operators: paying the right RUC for your vehicle is not negotiable,” Patena says.
“RUC charges help pay for the roads commercial transport operators use so it’s important this money goes back into the system.
“If other road users are picking up the tab for operators who fail to pay RUC for the appropriate weight, that’s not fair on the road users who are doing the right thing. RUC revenue is vital to New Zealand having a safe land transport system.
“I have spoken to industry and representatives who have told me they want the Transport Agency to be an active effective regulator to ensure there is a fair and level playing field for commercial operators.
“As part of delivering a level playing field, we are rolling out Weigh Right stations across the country that use intelligent vehicle screening software to target potentially overweight non-compliant vehicles. This allows compliant heavy vehicles to continue on their journey without interruption.
“We have also recently set up a new team focused on commercial licensing and revenue recovery,” Patena says.
Newly-appointed NZTA commercial licensing and revenue senior manager Paul Fantham says the organisation will be “ramping up” its regulation of RUC payments in the commercial transport sector.
The decision “gives us an endorsement that our approach to calculating and collecting RUC is firm and fair”, he says.
Semenoff stays on the road
The NZTA has also withdrawn its decision to revoke Semenoff’s (SSL) transport service licence.
NZTA first gave notice of its decision to revoke the company’s licence on March 15, 2019, claiming the firm was “not fit and proper” in regards to public safety.
However, NZTA and Semenoff have now “agreed to certain conditions relating to SSL’s operation and staff management which SSL has undertaken to adhere to for six months”, NZTA senior commercial transport manager Brett Aldridge says.
“With the decision to revoke being withdrawn, there is no existing proposal to revoke SSL’s transport service license.
“SSL of course remains subject to ongoing oversight by the Transport Agency, as is the case with all transport service providers,”Aldridge says.
Company boss Stan Semenoff says he respects the High Court’s decision but believes the ruling is wrong.
“I, like most hard working Kiwis, am very grateful for our courts and justice system. I respect the judge on her decision making regarding our case.
“But my experience over my lifetime is that judges can sometimes get rulings wrong. The methodology used to reach this ruling was not appropriate and we stand by that.
“Over time, I will be proven right as far as our case is concerned,” Semenoff says.
SSL is the largest logging haulage company in Northland and is responsible for 50% of Northland’s wood flow and log haulage. SSL’s business involves the transportation of logging material from the forest to Whangarei’s Northport. It employs around 55 people and around 48 logging truck drivers.
It maintains a fleet of 55 vehicles and has contracts with over 25 companies, including suppliers and logging operators throughout Northland.
*A copy of the High Court judgment can be found here.
