Speed limit changes: Road transport industry concerned costs not being factored into speed limit proposal

No cost-benefit analysis is planned as part of a major shake-up to speed limits across the country - and a road transport group says the move will “undoubtedly” see truck deliveries reduced.

Waka Kotahi/NZ Transport Agency is developing a plan with proposed speed limit changes to more than 500km of state highways in 440 locations across Aotearoa.

It is part of the Government’s Road to Zero strategy, with an initial target of reducing the number of people dying or being seriously injured on our roads by 40 per cent by 2030. New Zealand has a much higher death rate than comparable countries.

Already 339 people have died on New Zealand roads in 2022, up from 285 at the same point last year and the highest since 2018.

Aotearoa Transporting New Zealand chief executive Nick Leggett said while they supported safer roads the speed limit proposals, which include dropping speed limits by as much as 40km/h in places, would “undoubtedly” slow freight movements and add costs.

Answers to written Parliament questions from National Party transport spokesman Simeon Brown have revealed Waka Kotahi has no plans to do a cost-benefit analysis of the speed limit changes.

“In this industry time is money,” Leggett said.

“We would like to evidence of what impact there could be, to understand the impact of these decisions on the economy.”

Leggett said some of the proposals they’d seen would mean trucks doing fewer deliveries each day, meaning more trucks would have to be brought on board to make up the difference.

This would be even more difficult given the current shortage of truck drivers, he said.

“This would all add costs and emissions. There really needs to be an analysis of both of those impacts.”

Leggett said the focus on speed limits to improve safety was “too narrow”.

“They give the Scandinavian model, where speed limits have been reduced and so too road deaths.

“But in Sweden they have 20 times the number of expressways per capita where the top speed is 120km/h. If they are focused on saving lives they would look much broader.

“Speed is just one thing, but there is also road quality, impairment, driving skills, that all need to be looked at.”

Brown said it was “outrageous” the Government was analysing the potential costs associated with the speed limit changes.

“Slower speed limits will mean it takes longer for New Zealanders to get around, it’ll take longer for our trucking industry to be able to get goods to markets, and it may need in some areas where they need additional drivers to be able to make those trips.

“This is going to cost a significant amount, particularly for our road transport industry, with blanket speed limit reductions, and not doing a cost-benefit analysis is simply outrageous.”

Transport Minister Michael Wood said Waka Kotahi NZ Transport Agency was currently seeking views on the Interim State Highway Speed Management Plan.

The proposals were for reductions on 4 per cent of the total state highway network and were focused around schools, marae and small towns on the network, in which many local people have said they currently feel unsafe, he said.

Wood did not directly answer a question about why no cost-benefit analysis was being conducted but said there were likely wider cost savings with safer roads.

“Setting optimum speed limits has the potential to reduce deaths and serious injury road crashes, and crash costs, substantially.”

He referenced research taking a general look at optimum speed limits on New Zealand’s rural state highways, from 2012 but published in March this year, that concluded: “Although travel times could increase slightly, there would be a reduction in the total social costs on rural highways when all the benefits of reduced road trauma, air pollution emissions and vehicle operating costs from reduced speeds are considered.”