Govt kicks in $3.9m to help prop a women’s rugby tour in 2027 – and score for the economy – but Lee sounds like a social engineer
The government has announced it will be spending $3.9 million (to prop up the inaugural Women’s British and Irish Lions Tour) and, more immediately, collecting an unspecified sum (from the owners of light electric vehicles and plug-in hybrids).
The provision of government funding to support matches played across New Zealand in September 2027, which might raise some curiosity about the financial viability of the women’s rugby tour, has been made in the name of economic development.
The funding offers “significant economic, social and cultural benefits to New Zealand”, Sport and Recreation Minister Chris Bishop says.
“We’ve seen from the recent women’s world cups that Kiwis love a chance to see world-class teams competing up close in our own back yard.
“This is going to be a historic moment for rugby, and I can’t wait to see the very first women’s Lions team take on our world champion Black Ferns. This tour is going to be epic,” Chris Bishop says.
Epic? Really?
No matter. The government has earmarked $3.9 million from the Major Events Fund to support the series.
Economic Development Minister Melissa Lee has chimed in with supportive enthusiasm, although her remarks seem to be the stuff of social engineering rather than economic growth:
“Hosting this event will help us to further increase the value and visibility of women’s sport in New Zealand and create new sporting heroes and role models for our younger generations.”
But she has not forgotten the economy-boosting side of her portfolio duties:
“The action on the field is set to be matched by positive economic benefits as we look forward to seeing kiwis pack stadiums and welcoming the legion of fans that will come to New Zealand for this landmark tour,” Melissa Lee says.
The press statement notes that the Major Events Fund is an investment fund to support major events to achieve specific outcomes that align with government priorities.
It also reminds us of precedents set by the Labour Government, which the Luxon government is apt to accuse of wasteful spending:
New Zealand has successfully hosted World Cup events in recent years with the 2023’s FIFA Women’s World Cup, 2022’s Women’s Rugby World Cup and Women’s Cricket World Cup.
So that makes this spending okay, huh?
We await comment from the Taxpayers’ Union, which was quick to welcome the government’s confirmation that the exemption from road user charges (RUC) for owners of light electric vehicles (EVs) and plug-in hybrids will end from 1 April.
Petrol tax and distance-based RUC are paid by road users to contribute to the costs of maintaining our roads, but EVs and plug-in hybrids have been exempted from RUC.
Transitioning EVs and plug-in hybrids to RUC is the first step in delivering on the National-ACT coalition commitment to bring all vehicles into the RUC system.
Transport Minister Simeon Brown said this transition to RUC is about fairness and equity.
“It will ensure that all road users are contributing the upkeep and maintenance of our roads, irrespective of the type of vehicle they choose to drive.
“Plug-in hybrids are powered by electricity and petrol and have had to pay petrol tax, but not to the same level as petrol equivalent vehicles. To ensure that plug-in hybrids avoid paying twice through both fuel excise duty and RUCs, these vehicles will pay a reduced rate RUC.
“The previous National Government exempted EVs from paying RUC to encourage their uptake. This exemption was always intended to end when EVs hit around two per cent of the light vehicle fleet and we’re now at that point.
“With the increasing uptake of EVs and plug-in hybrids being brought into the RUC system, this means that these vehicles will now be contributing towards the maintenance and upkeep of our roading system like all other road users and will support the Government’s priority of building and maintaining our roading network.”
Owners of light EVs and plug-in hybrids will need to buy a RUC licence from 1 April. There will be a two-month transition period to allow time for people to get registered in the RUC system without being penalised for unpaid RUC.
Mind you, a bit of legislating is required.
The press statement noted:
The funding offers “significant economic, social and cultural benefits to New Zealand”, Sport and Recreation Minister Chris Bishop says.
“We’ve seen from the recent women’s world cups that Kiwis love a chance to see world-class teams competing up close in our own back yard.
“This is going to be a historic moment for rugby, and I can’t wait to see the very first women’s Lions team take on our world champion Black Ferns. This tour is going to be epic,” Chris Bishop says.
Epic? Really?
No matter. The government has earmarked $3.9 million from the Major Events Fund to support the series.
Economic Development Minister Melissa Lee has chimed in with supportive enthusiasm, although her remarks seem to be the stuff of social engineering rather than economic growth:
“Hosting this event will help us to further increase the value and visibility of women’s sport in New Zealand and create new sporting heroes and role models for our younger generations.”
But she has not forgotten the economy-boosting side of her portfolio duties:
“The action on the field is set to be matched by positive economic benefits as we look forward to seeing kiwis pack stadiums and welcoming the legion of fans that will come to New Zealand for this landmark tour,” Melissa Lee says.
The press statement notes that the Major Events Fund is an investment fund to support major events to achieve specific outcomes that align with government priorities.
It also reminds us of precedents set by the Labour Government, which the Luxon government is apt to accuse of wasteful spending:
New Zealand has successfully hosted World Cup events in recent years with the 2023’s FIFA Women’s World Cup, 2022’s Women’s Rugby World Cup and Women’s Cricket World Cup.
So that makes this spending okay, huh?
We await comment from the Taxpayers’ Union, which was quick to welcome the government’s confirmation that the exemption from road user charges (RUC) for owners of light electric vehicles (EVs) and plug-in hybrids will end from 1 April.
Petrol tax and distance-based RUC are paid by road users to contribute to the costs of maintaining our roads, but EVs and plug-in hybrids have been exempted from RUC.
Transitioning EVs and plug-in hybrids to RUC is the first step in delivering on the National-ACT coalition commitment to bring all vehicles into the RUC system.
Transport Minister Simeon Brown said this transition to RUC is about fairness and equity.
“It will ensure that all road users are contributing the upkeep and maintenance of our roads, irrespective of the type of vehicle they choose to drive.
“Plug-in hybrids are powered by electricity and petrol and have had to pay petrol tax, but not to the same level as petrol equivalent vehicles. To ensure that plug-in hybrids avoid paying twice through both fuel excise duty and RUCs, these vehicles will pay a reduced rate RUC.
“The previous National Government exempted EVs from paying RUC to encourage their uptake. This exemption was always intended to end when EVs hit around two per cent of the light vehicle fleet and we’re now at that point.
“With the increasing uptake of EVs and plug-in hybrids being brought into the RUC system, this means that these vehicles will now be contributing towards the maintenance and upkeep of our roading system like all other road users and will support the Government’s priority of building and maintaining our roading network.”
Owners of light EVs and plug-in hybrids will need to buy a RUC licence from 1 April. There will be a two-month transition period to allow time for people to get registered in the RUC system without being penalised for unpaid RUC.
Mind you, a bit of legislating is required.
The press statement noted:
- Legislation will be passed before 1 April to enable the reduced RUC rate for plug-in hybrid vehicles.
- Owners of light EVs will pay $76 per 1000 kilometres, in line with equivalent diesel-powered vehicles.
- Owners of plug-in hybrid vehicles will pay a reduced rate of $53 per 1000 kilometres so that they are not double taxed when paying Fuel Excise Duty. The partial rate of $53 per 1,000 kilometres assumes that on average, a plug-in hybrid will consume petrol at a rate of just under 3 litres per 100 kilometres.
- NZTA will be informing EV and plug-in hybrid owners about the transition to RUCs and what it will mean for them.
- As part of this outreach, each EV and plug-in hybrid owner will receive a letter prior to 1 April that will explain the RUC process. The first time an EV owner buys their RUC licence they need to give their odometer reading.
- Whenever a warrant of fitness is undertaken, a vehicle’s odometer will be reviewed. If the odometer exceeds the RUCs purchased by the vehicle’s owner, they will be invoiced for any difference.
“Applying RUC to EVs removes a senseless distortion that did not reduce transport emissions which are already governed under the capped Emissions Trading Scheme.
“The Government must now commit to redirecting all NLTF funding to road upgrades and maintenance and any surplus should be used to reduce the fuel excise and RUC rates.”
Let’s see who has been listening.
Latest from the Beehive
16 JANUARY 2024
The inaugural Women’s British and Irish Lions Tour will receive government funding to support matches played across New Zealand in September 2027.
The coalition Government is confirming that the exemption from road user charges (RUC) for owners of light electric vehicles (EVs) and plug-in hybrids will end from 1 April, Transport Minister Simeon Brown says.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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