Source: PSA
The Government’s plan to privatise the collection of Road User Charges, at the same time as moving all vehicles on to the system, risks adding to the cost of living for New Zealanders, the PSA says.
Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi says “it is concerning that the Government is moving to privatise a key government role – revenue collection – without presenting a clear, evidenced justification.
“Administration fees on Road User Charges are already low, about 1% of the revenue collected, and do not make a profit for NZTA. Putting RUC in the hands of private companies, who will need to make a profit on the transactions, is a recipe for higher fees for drivers.”
“Ramping up driving costs at a time when the Government is failing to control inflation makes no sense. This is another example of the Government’s reckless focus on privatising provision of public services, even if it increases costs to New Zealanders.
“As we have seen time and again, privatisation means less accountability to the public and Parliament. It will result in less public control over how much drivers are charged.
“Privatisation is a problem masquerading as a solution. The only people who will see any benefit from this scheme are the corporates who take their cut to gather the tax,” says Fitzsimons.
