RUC changes could boost farm profitability
September 21st, 2009
Farmers are hoping the switch to electronic Road User Charges (RUC) licences will lead to a reduction in farm freight transport costs. Last week the Govt announced an electronic distance recording and display system will be in place from early next year. This is expected to cut compliance costs and evasion. Transport Minister Steven Joyce says “this will give transport operators the opportunity to choose reliable electronic devices as an alternative to mechanical hubodometers and paper licences.” The introduction was a recommendation in the recent review of RUCs. Fedfarmers transport spokesperson Donald Aubrey says the change is welcome as it marks a step towards a more efficient road pricing system. “As the technology becomes viable, electronic road pricing is the obvious long term replacement for both road user charges and fuel excise taxes.” Aubrey believes as electronic distance recording devices will cut down on the compliance costs associated with purchasing RUCs this should be reflected in lower transport charges for farmers and will help boost on-farm profitability “Transport companies are an important partner to any farming business. Lower freight rates inevitably mean a more profitable farming sector, which in turn leads to a more prosperous NZ.”
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