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 changes, so too must the way we fund the system. The challenge is clear: ensuring sustainable, reliable funding for the maintenance and growth of the network.

At National Road Carriers (NRC), we believe the full transition to road user charges (RUC) is essential. With vehicles becoming more fuel-efficient and electric vehicle uptake increasing, the traditional fuel excise model is under serious pressure. Less fuel consumed means less tax collected, but demand on the network continues to rise. Put simply, there’s “a kink in the pipe above the tap” – less revenue flowing while pressure builds below.

The problem becomes worse when councils divert road funding to other projects. While initiatives such as cycleways and traffic-calming measures may be worthwhile, they are often funded at the expense of core maintenance. This “skimming off the top” leaves roads underfunded and taxpayers’ money less accountable.

A full shift to RUC offers a fairer, more sustainable solution. RUC ensures every vehicle contributes equitably to the cost of the network, reflecting the wear and tear it causes. Crucially, RUC is technology-ready. Electronic systems, linked with e-logbooks and other digital tools, can streamline compliance, cut administration costs and improve data accuracy. Operators benefit from simpler reporting and cost certainty, regulators from stronger oversight, and the public from safer, well-maintained roads.

Without change, the funding gap will widen. Roads risk deteriorating just as demand grows, with money increasingly misdirected or poorly governed. Authorities must be held accountable: funding earmarked for roads must be spent on roads, not vanity projects.

Stronger governance is critical. Asset owners must manage taxpayer funds transparently and responsibly. Burning money without accountability undermines the very infrastructure we need to power a modern economy. NRC continues to engage with ministers, NZTA, and councils to push for meaningful reform. This must include:

• a full rollout of electronic RUC
• ring-fencing of road funding, and
• clearer accountability for how councils and agencies allocate resources.

The benefits of a full RUC system extend well beyond fairness. Electronic RUC allows operators to track costs in real-time, reduce admin and plan more effectively. For policymakers, it delivers precision, helping close the gap created by falling fuel use and growing EV adoption. This is a chance to modernise funding in a way that is equitable, transparent, and future proof.

We are at a crossroads. The decisions taken now will shape the quality and resilience of our road network for decades. NRC’s position is clear: full adoption of RUC, combined with disciplined governance, is the path forward. Every vehicle must contribute fairly, every dollar must be used where intended, and our roads must remain safe and efficient for the people and businesses who rely on them.

The time for action is now. Our roads are vital, and their funding cannot be left to chance. By embracing a smarter, fairer system through RUC, we can secure New Zealand’s network today – and for generations to come.