Road User Charges Bill

It is a pleasure to speak on the Road User Charges Bill. It is a fairly technical bill. I came on to the Transport and Industrial Relations Committee only part-way through its deliberation on it, given my election to Parliament only 6 months ago. The bill is one that the select committee heard submissions on, and one that I was privileged to hear submissions on. By the looks of it, it seems as though the bill has some sensible changes to the road-user charges system that are necessary in order to bring the system into the 21st century.

It is also about reducing compliance costs for transport operators and ultimately reducing the transport costs for businesses and exporters. You see, the way road-user charges work at the moment, transport operators have to put a lot of time and effort into estimating the weight of the goods they are carrying on their vehicles. The changes that this Road User Charges Bill brings into effect essentially make it a whole lot easier for businesses, because they will be using the fixed weight that is assigned to the particular vehicle. Changing the definition of licensed weights, removing the confusing time licence system, and simplifying the list of exempted vehicles will all reduce compliance costs. The New Zealand Transport Agency will also be able to take greater advantage of modern internet technology in administering road-user charges payment channels. The bill also addresses concerns about road-user charge evasion, which is conservatively estimated to amount to about $30 million a year. Currently, honest payers of road-user charges are effectively subsidising those who evade payment. This bill will remove a number of evasion opportunities and encourage timely payment, making the system fairer for all users.

The Government is bringing this bill to the House because it is necessary to bring the system through to the 21st century. This Government is all about simplifying legislation for businesses. It is all about making it easier for people to do business in the community, and simplifying the road-user charges system is a good change that is being brought forward.

One of the changes the select committee made was to reduce the road-user charge licensing penalties for individuals from $3,000 to $1,000. We heard a number of submissions from people who felt that the penalty, at $3,000 for individuals, was too onerous and too punitive. Also, the select committee reduced the penalty for bodies corporate from $15,000 to $5,000. I and the other National members—indeed, I believe that it was the whole select committee, from memory—were happy to reduce those penalties, because it is important that when we have penalties in legislation they are in line with the actual problems that the penalties are trying to solve. So reducing those penalties from $3,000 to $1,000 for individuals and from $15,000 to $5,000 for bodies corporate seemed appropriate.

Another particular change that I will highlight was the new clause 12. We included a new clause 12 to enable vehicle operators of certain road-user charge vehicles issued with overweight and high-productivity permits to either pay for an additional licence to the distance licence required for the vehicle under clause 9 or obtain a distance licence specifically for road-user charge vehicles of type H. Again, that was a technical change to the bill that the select committee made, but it is an important one for those who made submissions on it.

I am happy to support this Road User Charges Bill. It is important to bring the system into the 21st century, and I look forward to the bill passing its second reading this afternoon.

Amendments recommended by the Transport and Industrial Relations Committee by majority agreed to.

Bill read a second time.