Hon Simeon Brown
Minister of Transport

29 August 2024

The Government has announced a Revenue Action Plan to enable a clear infrastructure pipeline that delivers the critical transport infrastructure our country needs sooner, Transport Minister Simeon Brown says.

“Delivering infrastructure to increase productivity and economic growth is a key priority for the Government. With New Zealand facing a prolonged infrastructure deficit, we need to ensure we have the funding and financing tools needed to support this growth.

“Our Government Policy Statement on land transport reintroduces the successful Roads of National Significance (RoNS) programme and major public transport projects to address the infrastructure deficit and outlines our plan to implement major reforms to the way we fund and finance infrastructure. The Revenue Action Plan delivers on that promise with a roadmap that will unlock new infrastructure.

“Cabinet has agreed on the first steps in the action plan to bring forward infrastructure investment. This will deliver a transport network that boosts economic growth and enables Kiwis and freight to get to where they need to go, quickly and safely."

The Revenue Action Plan will:

• Make better use of existing funding tools for the National Land Transport Fund (NLTF).
• Reform tolling legislation to support bringing forward infrastructure investment.
• Unlock new funding tools, including value capture.
• Transition all light vehicles to road user charges by as early as 2027.

“The NLTF is under increasing pressure and is not sustainable. Taxpayers have had to top up the fund and take on more debt just to pay for the infrastructure they need. It’s clear that New Zealand’s current funding model isn’t fit for purpose.

“Reforming our approach to funding and financing infrastructure provides certainty for New Zealanders and the transport sector. Alongside our RoNS and major public transport projects, these reforms establish a clear infrastructure pipeline.”

Speaking at the Building Nations Conference, Mr Brown confirmed the Government’s Revenue Action Plan will result in a greater focus on user-pays.

“When users pay for a service, they aren't just participants – they become customers, and customers naturally expect and demand the highest level of service.

“As part of the National-ACT coalition agreement, we are transitioning the light vehicle fleet to road user charges (RUC), and away from fuel tax, by as early as 2027. Transitioning to RUC will ensure that all road users are contributing fairly to the upkeep of our roads, regardless of the vehicle they drive.

“Cabinet will also explore reforms to tolling legislation and make decisions this year. We expect that NZTA will consider tolling to construct and maintain all new roads, including the Roads of National Significance, and that the Government will support all recommendations.

“As part of this, NZTA will soon begin consultation on new tolling proposals for the Takitimu North Link RoNS, the Manawatū Gorge, and the Ōtaki to north of Levin RoNS. These corridors offer significant benefits for Kiwis and freight, and it makes sense for those who benefit to contribute towards these projects.”

The Revenue Action Plan will leverage private sector innovation and expertise.

“The use of Public Private Partnerships (PPPs), ‘Build, Own, Operate, Transfer’ equity finance schemes, and value capture, will also enable the delivery of infrastructure in a more efficient manner.

“We have inherited a transport system in need of investment, without the appropriate funding tools to pay for it. Our Revenue Action Plan will result in infrastructure being delivered for New Zealanders sooner and funded by those who benefit most.”

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