The regulatory functions of Waka Kotahi are currently funded from fees, charges, the government, the National Land Transport Fund (for RUC and fuel excise duty (FED) refunds and RUC enforcements and investigations, and from collecting Auckland’s regional fuel tax. The revenue we get from these sources should be set at a level to meet the full cost of providing services.
We spent 18 months reviewing our funding and fees to see how much it costs us to regulate the system, and whether what we charge for our regulatory services covers the costs of providing them.
- did a stocktake of all regulatory services to understand our true costs
- established how much it costs us to do our work as regulators, and to monitor the agents, individuals and companies we use to do some of this work (like AA, VTNZ, and your local mechanic)
- tracked where current funding (from government loans, land transport revenue, and fees and charges) is used, and where our services are unfunded
- looked at who was currently paying for our services, how much they were paying, and established whether the right people were paying the right amounts for the right things.
This is the first comprehensive review of fees and charges Waka Kotahi has done since before the agency was established in 2008. We haven’t raised most of our fees since – not even adjusting them for inflation, or for changes in regulation or legislation. The number of vehicles and drivers needing to be regulated has also increased significantly since most fees and charges were set.
We hope to consult on a new sustainable funding model that will provide us with enough resources to be an efficient, effective, intelligence-led regulator into the future.