The New Zealand Government has announced a comprehensive Revenue Action Plan aimed at accelerating the delivery of vital transport infrastructure across the nation. Transport Minister Simeon Brown emphasised the importance of this initiative in addressing the country’s pressing infrastructure needs.

"Enhancing infrastructure to boost productivity and economic growth is a top priority for our Government," said Brown. "New Zealand faces a significant infrastructure deficit, and we must ensure we have the necessary funding and financing tools to support this growth."

The new plan, which aligns with the Government Policy Statement on land transport, reintroduces the successful Roads of National Significance (RoNS) program and outlines major public transport projects designed to tackle the infrastructure shortfall. Brown highlighted that the Revenue Action Plan is a crucial step toward creating a robust infrastructure pipeline. 

"Cabinet has approved initial steps of the action plan to accelerate infrastructure investment, which will create a transport network that enhances economic growth and ensures Kiwis and freight can travel quickly and safely," he stated.

Key components of the Revenue Action Plan include: Improved utilisation of existing funding sources for the National Land Transport Fund (NLTF). Reforms to tolling legislation to enable faster infrastructure investment. Introduction of new funding mechanisms, such as value capture. Transitioning all light vehicles to road user charges by 2027. 

"The NLTF faces increasing pressures and is not sustainable under the current model," Brown warned. "Taxpayers have been forced to supplement the fund and incur additional debt just to meet infrastructure demands. It is clear that New Zealand’s current funding framework is inadequate. 

The proposed reforms will provide certainty for both New Zealanders and the transport sector. In conjunction with the RoNS and major public transport initiatives, the Revenue Action Plan establishes a clear infrastructure roadmap.

Speaking at the Building Nations Conference, Brown emphasized a user-pays model. "When users contribute to a service, they become customers, and customers rightfully expect quality service in return."

As part of the coalition agreement between National and ACT, the government plans to transition light vehicles from fuel taxes to road user charges (RUC) by 2027. This move aims to ensure all road users contribute equitably to roadway maintenance, irrespective of their vehicle type.

Brown also announced that Cabinet would be reviewing new tolling reforms this year, with the expectation that the New Zealand Transport Agency (NZTA) will consider implementing tolls for all new roads, including those under the Roads of National Significance.

Consultations on new tolling proposals will soon commence for the Takitimu North Link RoNS, Manawatū Gorge, and the Ōtaki to Levin corridors—projects that promise significant benefits for both individuals and freight.

The Revenue Action Plan is set to leverage private sector expertise, utilising Public Private Partnerships (PPPs), 'Build, Own, Operate, Transfer' financing schemes, and value capture methods to enhance infrastructure delivery efficiency.

"We are tackling a significant investment shortfall in our transport system, and the new funding tools outlined in the Revenue Action Plan will ensure infrastructure is delivered more swiftly and is funded by those who benefit from it most," concluded Brown.