This week is all about the budget, and the government is clearly focused on managing the books as tightly as possible. This is the only sensible course of action when New Zealand is paying $8.8b per year to service our debt, more than our total health budget.  

New Zealanders want strong financial management, and not politicians throwing money around. 

That said, what would NRC like to have seen to help freight and supply chain efficiency? 

Firstly, in terms of infrastructure such as the roads of national and regional significance, these come from the National Land Transport Fund (paid for by your road user charges), and are well signaled. We’ve had the Cook Strait Ferry announcement, and this week heard that $461m will be invested in maintaining and upgrading the rail network – essential for freight movements. 

In the lead up to the budget the Government has been talking up the need for businesses to invest more in technology, tools and machinery to improve productivity – but this needs incentivising.  

There has been some mixed messages from the Prime Minister and Minister of Finance on bringing forward tax deductions on capital investments, improving the delayed depreciation approach today. This would be an ideal 

At a time when there are probably a record number of trucks parked up, reflecting the economy’s slump, purchasing new gear might be the last thing transport operators will be thinking about. 

But new tax rules take time. The government is also wanting the road transport industry to invest in lower carbon emission vehicles. Helping the industry to upgrade the vehicle fleet is going to be a decades long journey, but the right tax incentives would help kick start industry investment. 

Regardless of the budget outcome, NRC will be pushing for tax deductible capital investments for trucks. 

Roading resilience investment pays off in Northland 

A footnote on the recent road closures in the Mangamukas and Brynderwyn state highways. Both brand new stretches of road experience land slips during the recent bad weather over Easter. With the nature of the hilly terrain both highways traverse, closures in high rainfall events were always on the cards. 

But what was pleasing was how quickly they were fully re-opened.  

The Brynderwyns kept one lane open throughout the recovery works, which is how they were designed. The Maungamukas faired a little worse off the back of ex-Cyclone Tam, closing for 3 days. 

Prior to the network upgrades, the slips would have caused extended closures of both roads – so we’ve had some improvement. No less frustrating for transport operators having to detour the closures, but at least they were re-opened relatively quickly. 

The longer term solution remains by passing the problem spots, something that is in play for the Brynderwyns with the Northern Corridor bypass being planned. 

Next on the list for resilience – State Highway 29 over the Kaimai range between Waikato and Bay of Plenty needs a plan, and the second Ashburton bridge in Canterbury (already underway). 

Justin Tighe-Umbers, Chief Executive, National Road Carriers Assn