KEY POINTS:
Some bus and truck operators went on a fuel-tax "buying" spree on Friday and Saturday after the Government gave them just two days' warning of an average 11 per cent rise in road-user charges.
One large South Island bus company is understood to have spent almost $1 million,
buying six months of road-user charges at the old rate, which have been in force since 1989.
Industry organisations representing bus and truck firms are annoyed at the short notice of the increase, which came into effect yesterday and ranges from zero to 22 per cent for vehicles weighing six tonnes or more when laden.
The Government has defended its decision to waive a standard 28-day notice period for regulatory changes, saying it was entitled to protect its revenue base, to ensure that all vehicles paid their share of wear and tear to roads.
But the reduced notice period still allowed operators able to raise funds at short notice to buy up road-user distance licences before yesterday's increase.
Christchurch's Red Bus Company, owned by the city council, is believed to have spent about $900,000 to achieve a saving of $150,000.
Bus and Coach Association executive director John Collyns said that was all very well for wealthier operators, but many smaller firms were left in the invidious position of having no time to renegotiate contracts with their customers.
"The Government has been a bit devious shoving this through late on Thursday," said Mr Collyns, who estimated that the tax increase would cost bus and coach operators an extra $4 million a year.
Acting Transport Minister Harry Duynhoven said road charges for vehicles heavier than six tonnes had not risen since 1989, despite an almost doubling of taxes on lighter vans and buses in the meantime.
A Ministry of Transport official estimated that the overall increase would raise an extra $59 million towards roading costs, to which Mr Duynhoven said the Government needed to ensure all vehicles contributed their fair share.
"Vehicles over six tonnes in weight cause a disproportionate amount of wear and tear to roads."
The minister said an extra $1.3 billion committed by the Government to land transport in last year's Budget meant it was spending $300 million more than it would receive from road users in the three years to 2009 "to ensure New Zealand has a world-class transport system".
He said road charges made up about 10 per cent of transport operators' direct costs, so an 11 per cent rise would mean an overall cost hit of around 1 per cent.
That was little comfort to South Auckland cartage contractor Wil Harvie, president of the National Road Carriers' Association, who said he was trying to scrape up enough money to buy two months of travel for a saving of around $300.
Mr Harvie said he was fortunate in having only a small number of fixed contracts, meaning he would in most cases be able to pass on extra road charges, but he feared some operators might be driven out of business.
Road Transport Forum chief executive Tony Friedlander said the Government was guilty of "either a casual indifference to the financial viability of transport businesses across New Zealand or total ignorance of how business is carried out".
Tax on petrol also rose yesterday, by an inflation-adjusted 0.69c a litre, as did road user charges on vehicles of six tonnes or less - by 0.64c for every 1000km including GST.
But the Automobile Association has called on oil companies to absorb the petrol excise increase. As of last night petrol prices had yet to go up and oil companies were not commenting.
