Tolling reform essential in resolving the transport deficit

National road freight association Ia Ara Aotearoa Transporting New Zealand says the Minister of Transport’s announcement on tolling reform shows the Government is committed to delivering a modern, safe and efficient roading network.

The Government has announced it will introduce legislation to enable NZTA to raise more roading revenue through use of road tolling. This includes enabling tolling of existing roads that gain capacity or are extended by new projects, linking toll prices to inflation, and requiring heavy vehicles to use tolled roads where they are designed to divert traffic from built-up areas.

Chief Executive Dom Kalasih says while the reforms will be controversial, greater use of road tolling and other revenue tools are essential to delivering a roading system that delivers for all Kiwis.

"Nobody enjoys stumping up for road tolls, particularly when motorists are already contributing to road construction and maintenance through Fuel Excise Duty or Road User Charges. This is particularly the case for road freight companies, who pay the greatest proportion of their public sector costs of any vehicle type."

"Despite understandable hesitation, users warm to tolling once they experience the convenience, safety and efficiency the roads offer. A recent Post/Freshwater poll showed that motorists who regularly used toll roads were more likely to prefer highways be funded by private companies who toll road users, compared to road users who didn’t use them."

"We also need to acknowledge that New Zealand’s road transport funding model is approaching a crisis point. NZTA’s forecasting shows a growing revenue deficit, reaching $6b per year by 2030.

"The current revenue system won’t deliver the safe, efficient transport system the country needs - including the Roads of National Significance programme."

Kalasih says that Transporting New Zealand will work through the details of the proposed changes with their road freight members, particularly those impacting heavy vehicles, with a focus on limiting cost increases for business and consumers.

Three new toll roads

Transporting New Zealand says that the Government has made the right decision in refusing to toll the Manawatū Tararua Highway.

"Tolling proposals should be well-signalled, offer viable alternative routes, and be supported by a strong business case. Manawatū Tararua Highway didn’t meet any of these criteria, and we’re pleased the Government won’t proceed with tolling."

Transporting New Zealand submitted in support of two stronger tolling proposals that the Government has approved: Ōtaki to North of Levin Highway and Takitimu North Link.

Kalasih says when consultation was undertaken nearly two years ago on Penlink "we were hesitant".

"At that stage the revenue collected was not tightly linked to the new road, and we were concerned that the revenue could be spent on new cycleways and rail rather than essential road construction.

"Provided the Coalition Government can address these concerns, we’re much happier with tolling proceeding."