Rudman: NZTA’s $1.29 Credibility Toll

Brian Rudman does some digging:

Figures for the first five months of operation of the Northern Gateway Toll Road, to June 30, reveal that, on average, it cost $1.29 in transaction costs to collect each $2 car toll.

For those paying by phone, it would have been cheaper to have waved them through for free. Each $2 phone payment cost $2.70 to administer.

I wonder if Steven Joyce will now move to close down the toll operation, as clearly it isn’t making much of a profit, let alone a contribution to the Northern Gateway road.

As well they might, because under the legislation establishing the system, the Government agreed that $1.13 of the $2 collected was to go towards paying for the motorway, 65c was for transaction charges and 22c would go in GST.

In its operating report, the Transport Agency says: “This means we can claim only up $0.65 from each toll to cover our operational costs.”

To make up the difference between the 65c permitted transaction costs and the actual figure of $1.29, the agency has had to dig into its own pocket.

This must also meanĀ the death knell for the ridiculous Puhoi to Wellsford road widening project.

Leave a comment