Fenton Darien: Road User Charges Bill — Second Reading 
Fenton Darien: Road User Charges Bill — Second Reading 
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DARIEN FENTON (Labour) 
: 
 It is a privilege to take a call in the second reading of the Road User Charges Bill. I was on the Transport and Industrial Relations Committee with others. I say in opening that Labour supports this bill but we still have some major concerns over the shift from nominated weights to gross weights as the basis for charging road-user charges and over the determination of rates set by regulation. At select committee we actually voted against those particular clauses. 
However we do support lots of things about this bill. We think the purpose is sound. We want to make sure we continue the road-user charges system by imposing charges on heavy vehicles and certain other vehicles for the use of the roads in proportion to the cost that those vehicles generate. We think it is good that we modernise and simplify the road-user charges system and that we improve compliance with and recovery of road-user charges. 
The bill also establishes a framework for the electronic management of road-user charges which is welcome and is welcomed by Labour and it gives effect to the Government’s decisions arising from the recommendations of the independent review of the New Zealand road-user charging system. Just going back to where that review came from it came about prior to the last election when there was a lot of concern—and in fact action—from truckies about a change that was being proposed. In actual fact Annette King set up the independent review and this is the outcome of that review. 
As I said in the select committee we had two major concerns about the bill. They are still not really resolved and I think we will find that they are not resolved in the industry either. Although some parts of the industry may have settled down I think we will find in the next little while that there are others who are concerned about a couple of proposals in the bill. Most in the industry welcome the upgrading of the road-user charges regime—you know it is very sensible and we need to do it—and also a move to an electronic road-user charges system. After all we are in the 21st century and we should be using whatever technology is available to us. But the move from nominated weights to gross weights for the setting of road-user charges is still causing quite a lot of concern. In fact the Associate Minister of Transport said in his second reading speech just a moment ago that there were winners and losers. 
I will give an example from one submitter who talked about the difference this move would pose for his firm. This is not a large firm. It is a firm in Avondale that is I think known to the Hon Tau Henare. Submitters from the firm made a submission. They felt they had a fair hearing so they are feeling quite disappointed that they are still in the situation where they will face quite substantial increases in charges. There is an additional cost for this firm of $137000 a year. That is significant for a firm of that size in particular when we are still in a recession and this firm is trying to keep on its feet and keep doing business. So there is a lot of concern around that. As I say I think that concern will be highlighted. 
I do not think this has settled down in the industry by any means although it is fair to acknowledge that there are differences in the industry. The Road Transport Forum is still harking back to the good old days thinking we should have road-user charges based on diesel—that it should be a diesel charge. Anybody who was on the select committee and listened to where the industry is going and what is happening overseas will know that any sort of road-user charges based on a charge through diesel is not where the world is going. New Zealand actually leads the world. We have had road-user charges for some time based on the system we have at the moment. When we look at what is happening overseas we see that people are now starting to realise that funding road-user charges based on diesel is not viable. As trucks get more and more efficient as they move to different systems—maybe electric systems and others—obviously the income from road-user charges is declining. 
One of the things that was really interesting about the select committee process and meeting with some of the groups that are doing very very innovative and leading-edge work in this industry was understanding that we have a great product in New Zealand with our road-user charges system and with the move to electronic hubodometers and charging through electronic systems. We have a product that is now starting to be sold throughout the world. We had a couple of examples from companies that came to see us. EROAD was one. I have been to see some others and there is another one called International Telematics. 
They are moving out well beyond New Zealand—well beyond Australia for that matter—and into Europe. Europe is now saying that New Zealand actually has a good system and it has had it since 1974. It thinks it is a viable system and wants to look at it. It wants to look at how New Zealand is moving in this direction and how it is using new technology to charge for road use. That was pretty interesting for the select committee and I think we need to be encouraging that. It was a bit disappointing to see some of our more leading companies treated I thought fairly abysmally by the National members on the select committee who are very suspicious of their motives. I think we need to be encouraging that sort of innovation and possible export revenue that is developing in the industry. 
The other part of the bill we are not happy about—that is the industry is not happy about—is the process by which the regulations that will set up the rates for the road-user charges will be written by the Ministry of Transport and then signed off by the Minister thereby breaking the very important democratic principle that there should be no taxation without representation. We heard again and again that there has been a lack of consultation with the industry. One of the things the industry was asking for was that we write into the bill a requirement that there be consultation before the regulations are set for the new rates for road-user charges. That request was rejected by the Government which is very unfortunate. 
It is a very interesting turn of events which we see if we look back at our history. I started my contribution by referring to 2008 when we saw the truckies out on the roads protesting against the then Labour Government. 
Hon Tau Henare 
: That’s right. 
DARIEN FENTON 
: They were protesting against the Labour Government and I am happy to own up to that but the Hon Tau Henare should go around and see his mate from A One Movers and see where he is coming from and how happy he is with this Government. In fact we may well see the truckies on the roads before the next election because they are not happy with this bill. Labour is on the side of the truckies and is sticking up for them. 
As I said there are good things about this bill but on those two things the Government has failed to listen to the industry. I think their concerns are fair enough. Why should there be increases to charges without proper representation? Why should there be taxation without representation? Setting increases through regulation— 
David Bennett 
: That’s the Labour Party. 
DARIEN FENTON 
: Mr Bennett can scoff but I hope that the truckies come visiting him before the election; I am sure they will. In fact an awful lot more action is coming your way. You may think— 
Mr DEPUTY SPEAKER 
: Order! 
DARIEN FENTON 
: Sorry Mr Deputy Speaker. He may think that the Road Transport Forum is the be-all and end-all but it is not and it does not speak for the new industry—the modern part of the industry. The progressive part wants to see this industry move forward use new electronic systems and be responsible. They do not want to hark back to the 1970s and claim that they want a system based on diesel tax. 
As we move towards the next election members opposite may well see quite a lot of opposition coming their way. When companies like Fonterra which is New Zealand’s largest company and Toll New Zealand are opposing this bill I have to say we have to be very very worried that this Government is not listening.