By James Smith, GM Policy & Advocacy, National Road Carriers
New Zealand’s road network is the lifeblood of our economy. Every day, freight operators, commuters, and communities rely on our roads to move goods, connect towns, and keep the country moving. Yet, as vehicle technology evolves and the ways we pay for road use shift, we are facing a growing challenge: ensuring there are sufficient, reliable funds to maintain and expand the road network we all depend on.
At National Road Carriers (NRC), we believe the full transition to Road User Charges (RUC) is no longer optional – it is essential. With improvements in vehicle fuel efficiency and the increasing uptake of electric vehicles, the traditional method of funding roads through fuel excise is under serious pressure. Put simply, we have “a kink in the pipe above the tap”: less fuel consumed means less tax revenue flowing into the system, yet the demand on roads continues to grow.
This reduction in funding, combined with councils diverting funds intended for roading into other projects, compounds the problem. While local initiatives such as cycleways and traffic calming measures are well-intentioned, they are often funded at the expense of core roading maintenance. This “skimming off the top” reduces the water flowing to essential infrastructure, leaving roads underfunded and taxpayers’ money at risk of being spent without proper accountability.
Transitioning the full vehicle fleet to RUC offers a fairer, more sustainable solution. RUC ensures that every vehicle contributes equitably to the cost of maintaining and expanding our road network, directly reflecting the wear and tear a vehicle imposes. Importantly, RUC is technology ready. Electronic RUC systems, integrated with e-logbooks and other digital tools, can streamline compliance, reduce administration costs, and improve data accuracy. For operators, this means simpler reporting and more certainty. For regulators, it means stronger oversight and reduced leakage. And for the public, RUC may be cheaper than fuel tax for some drivers, and – most importantly – it gives confidence that roads will be properly maintained, safer, and fit for purpose.
Currently, we see a funding gap widening as efficiencies increase. Without decisive action, we risk a situation where the roads deteriorate just as demand continues to grow, and where investment is misdirected or insufficiently governed. Improvements are already underway, but without a disciplined approach to fund allocation, too much remains at risk. Roading authorities must be held accountable to ensure that funding earmarked for roads is spent on roads – not on vanity projects.
Stronger governance across the board is critical. Asset owners must take responsibility for prudent, transparent management of taxpayer dollars. We cannot continue burning money without clear accountability while expecting our infrastructure to meet the demands of a modern economy.
NRC is actively engaging with Ministers, the New Zealand Transport Agency, and councils to address these challenges and advocate for meaningful change. That change should mean the full rollout of electronic RUC with stricter requirements to ring-fence road funding, and clearer accountability measures to ensure councils and agencies spend funds where they are intended.
The benefits of moving fully to RUC extend beyond fairness. With the rollout of electronic systems, operators can track charges in real time, reduce administrative burdens, and gain better insight into their vehicle costs. For policymakers, e-RUC offers precision, helping to close the funding gap created by lower fuel consumption and the shift to electric vehicles. This is a chance to modernise New Zealand’s road funding system in a way that is equitable, transparent, and future-ready.
We are at a crossroads. The decisions we make today about how we fund our roads will determine the quality and reliability of the network for decades to come. NRC is clear: the full adoption of RUC, paired with rigorous governance and investment discipline, is the path forward. We must ensure that every vehicle contributes fairly, that every dollar flows to the projects it is intended for, and that New Zealand’s roads remain safe, efficient, and resilient for the communities and businesses that depend on them.
The time for action is now. Our roads are vital; their funding cannot be left to chance or mismanagement. By embracing a fairer, smarter system through RUC, we can secure the roads New Zealanders rely on – today and into the future.
