Govt Unveils Revenue Action Plan to Accelerate Transport Infrastructure

“Delivering infrastructure that enhances productivity and economic growth is a top priority for the Government,” said Minister Brown.

The New Zealand Government has introduced a Revenue Action Plan aimed at accelerating the delivery of essential transport infrastructure, according to Transport Minister Simeon Brown. This plan is part of a broader strategy to address the country’s infrastructure deficit and boost economic growth.

“Delivering infrastructure that enhances productivity and economic growth is a top priority for the Government,” said Minister Brown. “New Zealand’s prolonged infrastructure deficit necessitates new funding and financing tools to support this growth.”

The Government’s Policy Statement on land transport reintroduces the successful Roads of National Significance (RoNS) programme and major public transport projects, addressing the infrastructure deficit. The Revenue Action Plan outlines a clear roadmap to unlock new infrastructure, including major reforms in how infrastructure is funded and financed.

Key components of the Revenue Action Plan include:

Maximizing existing funding tools for the National Land Transport Fund (NLTF).

Reforming tolling legislation to facilitate quicker infrastructure investments.

Introducing new funding tools, such as value capture.

Transitioning all light vehicles to road user charges (RUC) by as early as 2027.

Minister Brown highlighted that the current NLTF is under strain and unsustainable, with taxpayers and additional debt currently required to fund necessary infrastructure. The transition to RUC will ensure fair contributions from all road users, regardless of the vehicle type, and shift the funding model towards user-pays.

At the Building Nations Conference, Minister Brown confirmed that the Government’s plan includes exploring reforms to tolling legislation. New tolling proposals for significant projects like the Takitimu North Link RoNS, the Manawatū Gorge, and the Ōtaki to north of Levin RoNS will be consulted on by NZTA soon. These corridors are expected to provide substantial benefits to both Kiwis and freight, making user contributions logical.

The Revenue Action Plan also aims to leverage private sector expertise and innovation through Public Private Partnerships (PPPs) and equity finance schemes, enabling more efficient infrastructure delivery.

Minister Brown emphasized that this plan will result in infrastructure being delivered sooner and funded by those who benefit most, addressing the investment needs of New Zealand's transport system.