Thursday, July 3, 2008

Road user charges and the real cost of transport

As oil prices have risen, the truckies have been asking for loosening of rules regulating the size and weight of trucks. They want bigger trucks so each vehicle can carry more goods. The government announced a trial of special permits allowing larger trucks just over a month ago.

I have owned several diesel vehicles over the years and the road user charges have remained very stable for a very long time. There were no increases at all between 1989 and 2007.

The cost of roads and maintaining roads has been anything but stable, rising steadily over time. There had to be a catch up at some point.

The reality is that the diesel vehicles have enjoyed what amounts to a subsidy for some time now. The Green Party said today:
It is time to stop subsidising the trucking industry and price transport on a level playing field if New Zealand is to make the transition to a sustainable economy, Green Party Co-Leader Jeanette Fitzsimons says.

“At the moment, truck drivers only pay 56 percent of their costs to the economy, compared to rail freight users who pay on average 82 percent and ordinary motorists who pay 64 percent, according to the Ministry of Transport’s Surface Transport Costs and Charges study from 2005.

“This distorts the decisions of freight customers when choosing whether to send their products by road or rail because true costs are not reflected in the prices.

“It is important to remember that Road User Charges for trucks have been increased only once since 1989,” Ms Fitzsimons says.

“If we want to see more of our heavy freight on rail instead of big trucks on the road, we need fair Road User Charges.

“I hope those living in tomorrow’s protest areas will respond by using the rail system, cycling, walking or even taking the day off,” Ms Fitzsimons says.
Transport Minister, Annette King, says the truckie's protest was organised weeks ago. Long before they knew road user charges were increasing.

The head of the Road Transport Users Forum, Tony Friedlander, is a former National Party MP and Minister of Transport. In fact, he was the transport Minister in the Muldoon government when the law was changed to allow trucks to carry good more than 150kms, more or less creating the trucking industry as it is today. It would seem very likely he was very much involved in organising tomorrow's protest.

I guess we'll have to chalk it up as just one more activity in the Crosby / Textor playbook of playing on public ignorance for political advantage.

2 comments:

  1. "The head of the Road Transport Users Forum, Tony Friedlander, is a former National Party MP and Minister of Transport. In fact, he was the transport Minister in the Muldoon government when the law was changed to allow trucks to carry good more than 150kms, more or less creating the trucking industry as it is today. It would seem very likely he was very much involved in organising tomorrow's protest.

    I guess we'll have to chalk it up as just one more activity in the Crosby / Textor playbook of playing on public ignorance for political advantage.
    posted by Truth Seeker at 9:50 PM on Jul 3, 2008"

    Luckily "honest Jim" has seen the error of his ways and can use Kiwirail to kick butt of Friedlander and the rorting truckies.
    Go Annette.

    ReplyDelete
  2. Jim Bolger is an example of the moderate centre-right that National use to be. People who support conservatism rather than neo-liberal economics smashed together with religious fundamentalism have had to find a political home elsewhere.

    National's current standing in the polls can't have anything to do their policies. They don't have any.

    Labour have grown tired and forgotten to take the time to bring the people with them. Their current situation is very much of their own making.

    That said, the commercial print media in particular, are openly campaigning for a change of government so the present government is having a great deal of difficulty getting its message through. The Herald's erroneous mini-furore over dimmer switches and chandeliers was an excellent example of how they ignore the good news (saving $2.5 billion) and instead (wrongly in fact) portray the policy as a threat to trivial household items.

    ReplyDelete

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