Road user charges to be simplified

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The road user charges system will be maintained but will be simplified and purchases moved online, Transport Minister Steven Joyce says.

An independent review group made 33 recommendations on the charges and the Government accepted 20 of them.

The review was commissioned following concerns about increases in road user charges in July last year.

The Government accepted recommendations that the road user charges system be retained, simplified and modernised rather than replaced with a diesel tax, Mr Joyce said.

A diesel tax would "impose costs on non-transport users".

Six weeks notice will now be given before increases to the charges.

The Government rejected a higher annual flat licence fee rate because it was unfair to those who travelled short distances, Mr Joyce said.

Light diesel users contribute the least to the roading system, the review found.

Over time, the charges would be purchased via an online system which would reduce compliance costs and evasion, Mr Joyce said.

The Government turned down a pay-as-you-go method, saying it would add complications and costs.

The charges rate will be reviewed annually in line with the recommendation, but that will not necessarily mean an annual increase.

Changes to the charges will be introduced as legislation in Parliament in early 2010.

NZPA