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Dr Matthew Birchall | Senior Fellow | matthew.birchall@nzinitiative.org.nz | |||
This week, the New Zealand Initiative released a new report, "Driving Change: How Road Pricing Can Improve Our Roads." It emphasises that the current system, heavily reliant on fuel excise duty (FED), is outdated. There is a better way. The report proposes comprehensive transport funding reform through "Smart Road User Charges" (Smart RUC). Vehicles would be charged based on how much they use the roads, when and where they drive, and the burden their type of vehicle imposes on the road. The concept of road pricing is not new. Its intellectual lineage goes back to Adam Smith in the 18th century. Although our modes of transport have evolved dramatically since then – from horse-drawn carriages to electric cars – Smith's core principle remains as relevant as ever: those who use the roads should pay for them. Smart RUC offers two main options for road users: an automated "pay-as-you-drive" system using an electronic distance recorder and pre-purchased distance licenses. This flexibility accommodates the diverse preferences and needs of road users. The goal is to create a fairer, more efficient system – not to increase costs for drivers. The report proposes a gradual rollout over five years, allowing time for adaptation and avoiding the pitfalls of rushed implementation seen in other countries. A phased approach would give everyone – from government agencies to individual drivers – time to adapt. Smart RUC offers several benefits. It sends clear price signals about the true costs of road use, charging all road users based on their actual use. It provides a stable, long-term funding source for our vital transport infrastructure. It also offers valuable insights into road user behaviour, enabling smarter investment decisions. The report explores the questions of fairness, privacy, and technological feasibility in depth, concluding that the main challenge is not technical but political. It is time for a shift in how we approach transport funding. Road pricing rests on strong intellectual foundations and has proven successful internationally. Implementing a more robust road pricing system can help us change course and build a network that benefits everyone. Are we ready to take the wheel? Dr Matthew Birchall’s report, Driving Change: How road pricing can improve our roads, was published on 9 July |
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Dr James Kierstead | Research Fellow | james.kierstead@nzinitiative.org.nz | |||
Besides prompting discussions about what Labour should do with its newfound power and how (and perhaps if) the Conservatives can rebuild, the results have also reignited another debate – the debate about the UK’s ‘First Past the Post’ (FPP) electoral system. In FPP, the candidate with the most votes in each electorate wins, even if most of the voters in that constituency voted against them. In this election, in which four or even five parties were competitive in some electorates, almost 40% of MPs were elected by less than 40% of local voters – more than twice the previous high. At the national level, Labour won a little less than two thirds of the seats in Parliament on a little more than a third of the popular vote. The 30-point disparity between Labour’s share of votes and its share of seats arguably made this the most disproportionate election in British history. A few other left-of-centre parties lost out because of FPP, with the Greens and the Scottish National Party winning only 1% of seats each on 7% and 3% of the national vote, respectively. On the whole, though, it was the right that lost out. The Conservatives’ 24% share of the vote gave them only 19% of the seats in Parliament. More dramatically, Reform took 14% of the vote – and only 1% of seats. Reform needed more than 800,000 for each seat that it won. Labour needed less than 24,000. It was the Liberal Democrats whose seat share (11%) most closely mirrored their share of the vote (12%) in this election – quite a turnaround for a party who have for so long been the big losers from FPP. The Lib Dems were also traditionally the main proponents of electoral reform, with former leader Nick Clegg securing a referendum on introducing the Alternative Vote system in 2011. Right-leaning Brits, by contrast, have traditionally defended the FPP system for its relative simplicity and familiarity. Now, with the likes of Nigel Farage touting electoral reform, the battle over the UK electoral system looks likely to continue – but with different forces on each side. |
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Dr Oliver Hartwich | Executive Director | oliver.hartwich@nzinitiative.org.nz | |||
Anyway, it had words in it. Important words. And these words, they’re like a... like a GPS. You know, those fold-out things you keep in your glove compartment. Except this one doesn’t fold. Or maybe it does. I’m not sure. But it’s still important. So today, I’m going to read these words to you. Or try to, anyway. Here goes: We the People That’s us, folks. You, me, the guy at the... the place. You know, the one with the thing. of the United States, United States. That’s important. We’re united. Except when we’re not. But we should be. I think. in Order to form a more perfect Union, Perfect union. Like a... like a really good sandwich. A union sandwich. Or was it a club sandwich? Anyway, it’s where all the ingredients just... you know, they come together. But it’s not about sandwiches. I don’t think. establish Justice, Justice. It’s like... it’s like when you’re in a courtroom, and there’s this guy in a robe. Mr. Justice, they call him. Except it’s not always a mister. Sometimes it’s a... a... you know, the other kind. But they all wear robes. I think. insure domestic Tranquility, Domestic... that means at home, folks. And tranquility. That’s a big word. It means quiet. Jill tells me to be quiet sometimes, especially after 8pm. Says it’s bedtime. But we’re talking about the country, not me. provide for the common defence, Defence. Is it written with a ‘c’ or an ‘s’? I can never remember. But it’s about protecting. Protecting us from... from the bad things. You know, the things we don’t like. promote the general Welfare, Welfare. Not like... not like the welfare checks. Well, more like checks and balances. But it’s more than that. It’s about making sure everyone’s okay. and secure the Blessings of Liberty to ourselves and our Posterity, Liberty. That’s freedom, folks. And blessings. Those are good things. And posterity. That’s... that’s... well, we’ll get to that later. do ordain and establish this Constitution for the United States of America. And there you have it, folks. The whole... the whole shebang. The thing that guides us. Or follows us. Or both. I’m still not sure. But I know it’s important. Really important. God bless you, and God bless America. And may God bless... you know, the thing. |
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Dr Oliver Hartwich | Executive Director | oliver.hartwich@nzinitiative.org.nz | |||
Nobody knows the Constitution better than me, believe me. I’ve got the best words, and these are the best words in the history of words. So, let’s talk about it. Ready? Here we go: We the People That’s us, folks. The best people. Americans. Not like those people trying to cross the border. We’re going to build a wall, by the way. A great wall. of the United States, The United States. It’s right there in the name. United. Like my rallies. Thousands of people. Millions, probably. in Order to form a more perfect Union, Perfect union. Like my marriages. All of them. Perfect. Unlike Crooked Hillary’s, am I right? establish Justice, Justice. I know all about justice. I’ve been treated very unfairly. No president has ever been treated worse than me. It’s true. insure domestic Tranquility, Domestic tranquility. It’s very important. Very important. You know what’s not tranquil? The fake news media. They’re the enemy of the people. provide for the common defence, Defence. Or defense. Both are fine. I know more than the generals, folks. I’m going to make our military so strong. So strong. promote the general Welfare, Welfare. We don’t like that word. We like jobs. I’ve created more jobs than anyone. When I was in charge, unemployment was at its lowest. You’re welcome. and secure the Blessings of Liberty to ourselves and our Posterity, Liberty. It’s what makes America great. And posterity. That’s like posterior. I have a great posterior. Everyone says so. do ordain and establish this Constitution for the United States of America. And there you have it. The Constitution. It’s a beautiful thing. Some people say it’s the best constitution ever written. You know, if I had been there, I probably would have made it even better. But it’s still great, really great. People always ask me, “How do you know so much about the Constitution?” And I tell them, it’s because I have a very good brain. Very good. The best brain. So, remember these words, folks. They’re important. Like me. I’m important. And together, we’re going to make America great again. Because that’s what this is all about. Making America great again. Thank you. God bless America. And God bless me. Thank you. |
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