Road User Charges: Electronic System Raises Expectations of Rate Cuts
September 24th, 2009
The Govt’s confirmation it will allow electronic distance recording and electronic display of Road User Charges (RUC) licences is already raising expectations the new streamlined system will bring cost savings to freight transport service customers. Lobby groups such as Federated Farmers are putting pressure on rural trucking companies to lower freight rates when the changes are introduced claiming the savings in compliance costs should be passed on to trucking company customers.
Such calls are being fuelled in part by statements from Transport Minister Steven Joyce who claims electronic distance recording is more efficient than existing mechanical methods and can make the operation of a RUC system easier for heavy vehicle operators. “The move will go a long way towards reducing compliance costs and the risk of RUC evasion for those who choose to adopt the new technology.” He adds many trucking companies already use electronic devices and data collection systems to manage their businesses. Regulation enabling trucking companies to use electronic distance recording devices to measure road use will soon be developed and is expected to be in place by early next year. The move to electronic RUCs follow recommendations from an independent review of the RUC system.
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