Govt looks at ways to pay for its long list of new roads

Fuel taxes could soon be gone, and a new type of user pay system could be introduced as the Government looks for ways to pay for its long list of new roads.

The ACT-National coalition agreement promised to introduce electronic road user charges for all vehicles — starting with EVs. There will also be more road tolls, time of use, and congestion charges.

This means that in time, people could be charged depending on what road they travel on or what time of day.

"It'll switch people from paying excise at the pump to paying by the weight of their vehicle and how much they travel. We think that's a much fairer way to pay for the roads," Transport Minister Simeon Brown said.

Infrastructure NZ now wants the Government to move faster in getting e-road units installed in all of the country's passenger vehicles — tracking which roads people use.

"The funding system for roads is buggered, or very fast approaching that," Infrastructure NZ chief executive Nick Leggett said.

"So, we do need to find new ways of building revenue from road users."

Linda Meade, an infrastructure expert from Kaimana Consulting, said the technology is already there, especially in newer cars.

"For people who drive older vehicles, there would need to be a process for authorised technicians.

"Some sort of onboard unit which would take the place of a smart system that might be in a modern vehicle," she said.

But there are still a few issues to iron out.

"How long will it take to make the transition, enforcement, and what role an electronic car can play? How can we make it efficient and easy for users to pay?" Brown said.

The minister wants answers to the questions by the middle of the year — and then the Government has to convince the public that what is essentially another fee is a good idea.

Meade thinks Kiwis will likely get on board with the new charges.

"I think it's just fairer," she said.

"Everyone gets charged on the same basis; everyone gets charged on the distance travelled, and that will be a change for some people."

Leggett said it may "take a bit of time for Kiwis to get their head around it because it's new".

"But we know we can't keep having a free lunch."

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