16 January 2024

RUC Change for EVs Timely and Fair

Extending Road User Charges (RUC) levels the playing field and will help our roads to get more much-needed maintenance.

That’s the response from the Motor Trade Association to the Government’s announcement that RUC will apply to EVs and plug-in hybrids from 1 April.

“We had advocated for this policy and are pleased that the Government has listened,” MTA Chief Executive Lee Marshall says.

“There’s no doubt that the exemption from RUC for EVs has helped increase the number on our roads.

“That’s been welcome, and it’s now time that with the increase in the size of our electrified fleet past the 2% threshold, drivers of EVs help pay for the upkeep of the roads they travel on.”

Now the challenge is to ensure that the proceeds of the RUC goes where it’s needed – on roads.

“The founding principle of the National Land Transport Fund is that it focuses solely on roads,” Lee says.

“In 2020 the law was changed to allow these funds to pay for rail. While rail has an important role to play in our transport network, the principle that road users only pay for roading projects is the correct one, and we trust the Government to follow through on that.”

Lee says weather events of the last 12 months have accelerated the deterioration of our roads.

“The reality is that cyclones and storms are only going to occur more frequently in the future,” Lee says.

“Roads are still the way most New Zealanders travel, for work or pleasure, so it’s imperative that we have roads that are strong, resilient, and easily repaired.”

Lee says MTA looks forward to more detail for motorists being released by Government.

“We’re ready to help communicate and facilitate the changes, and advise for steps on a smooth introduction.”

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