Guy Nathan: Road User Charges Bill — In Committee 
Text is incorporated into the Bound Volume 
Guy Nathan: Road User Charges Bill — In Committee 
[Sitting date: 04 October 2011. Volume:676;Page:21696. Text is incorporated into the Bound Volume.] 
Hon NATHAN GUY (Associate Minister of Transport) 
: 
 I think it is worthwhile making a few introductory remarks before we get into the substance of this four-part bill with some schedules. The bill replaces the Road User Charges Act of 1977 after a review identified several shortcomings. 
Darien Fenton 
: We know this. 
Hon NATHAN GUY 
: It is outdated and complicated. I am pleased that the member Darien Fenton knows this. It does not hurt the Committee to be reminded and educated. As a result this bill will modernise and simplify the road-user charges system. Overall it will reduce compliance costs and importantly it will reduce road-user charges evasion which is estimated to be around $30 million a year. That is a very conservative estimate as well. Of course as a result of that the honest guys are subsidising those who are choosing to evade the system. The bill also replaces the existing operator-nominated weights with all road-user charges vehicles having a permanent road-user charges weight. 
I thank the Transport and Industrial Relations Committee for its contribution. Amongst other things Part 1 which I have mentioned sets the framework for the electronic management of road-user charges. It allows the road-user charges collector to be satisfied that the system will indeed be secure and reliable. It is also worth mentioning to the Committee that there is a Supplementary Order Paper 287 in the name of the Minister of Transport the Hon Steven Joyce. In essence the biggest part of this Supplementary Order Paper will allow an exemption for light diesel vehicles under 3.5 tonnes—those vehicles that are almost exclusively driven off public roads despite being suitable for use on a public road. 
The regulations will need to be consulted on and passed. Of course they will need to include all of the terms of exemption and no doubt there will be discussion on zeroing in on what would be an appropriate kilometre distance travelled in a radius of a particular activity that will be driven off a public road. Of course to safeguard this system the penalties will indeed have to be high because otherwise the system could be abused and the Government would not want that. 
I think it is important to note that if someone chooses to take up this option for a light diesel vehicle under 3.5 tonnes they cannot have it both ways. They need to firm up and say that yes this vehicle will be operated in this area and off the public road. They cannot suddenly choose to duck into town which might be 50 kilometres away and put a tonne of fertiliser on the back of the ute or indeed take mum and the kids on a long-distance holiday in their King Cab ute. 
I also draw the Committee’s attention to other amendments that are included in this Supplementary Order Paper which are mostly minor and technical in nature such as to remove certain operators’ requirements to have to retain time-keeping records. These would have created additional compliance costs and I am sure the select committee is pleased about that amendment.