Taituarā has made a submission on the Land Transport (Revenue) Amendment Bill. Overall, the submission welcomes the direction of the Bill while raising a number of issues that matter for councils and the communities they serve.
Local government owns and maintains around 83,000 kilometres of local roads, making up about 88 per cent of New Zealand’s road network by length. That means decisions about how land transport is funded have a direct impact on councils’ ability to keep roads safe, well maintained, and fit for the future.
Tolling is already a widely used funding tool in Aotearoa New Zealand and overseas – Taituarā supports the proposal to extend tolling powers for new roads. At the same time, the submission highlights concerns about changes to the requirement for untolled alternative routes. In some cases, restricting heavy vehicles from these routes could push traffic onto local roads that aren’t designed for regular heavy use, increasing maintenance costs and creating safety or amenity issues for nearby communities.
The Bill also allows tolls to be adjusted over time using the Consumer Price Index (CPI). While regular adjustments make sense, it’s not clear that the CPI reflects the real costs of building and maintaining roads. Construction costs have risen much faster than general inflation, and a construction-specific index may be more appropriate.
Taituarā also supports the Bill’s move to modernise the Road User Charges (RUC) system and begin the shift away from fuel excise. With improving vehicle efficiency and changing travel patterns, fuel excise is no longer a sustainable long-term funding source. Expanding RUC payment options and enabling in-vehicle distance tracking are seen as important steps forward.
Overall, Taituarā sees the Bill as a positive step toward a more sustainable and transparent land transport funding system, while encouraging refinements to ensure local impacts are fully considered.
