Aug 2018

Heavy Vehicle Road Reform

HVRR Phase 2: Independent price regulation of heavy vehicle charges

Marsden Jacob Associates has been engaged by the Transport and Infrastructure Council to undertake a public consultation and develop a Regulation Impact Statement (RIS) on Phase 2 of the Heavy Vehicle Road Reform (HVRR) program.

In November 2017, the Transport and Infrastructure Council agreed to develop a RIS to examine the costs and benefits of the implementation of independent price regulation and a forward-looking cost base. This RIS is a key part of Phase 2 of the HVRR road map. The core elements of this phase of reforms relate to:

  • the establishment of an independent price regulator, which would have powers to set prices independently of government and potentially perform a range of oversight activities related to forward-looking road expenditure; and
  • the implementation of a forward-looking cost base, which would develop a building-block model to determine allowed revenue under heavy vehicle charging based on expected future expenditure.

A background paper on the HVRR can be found here. Further detail on the broader reforms are available here on the Transport and Infrastructure Council HVRR pages and the Department of Infrastructure, Regional Development and Cities HVRR website here.

This RIS is being undertaken by Marsden Jacob Associates as an independent consultancy because the Transport and Infrastructure Council wants to understand the costs and implications of independent price regulation. No decision on independent price regulation has yet been taken; stakeholder views are sought on the RIS to help inform a Transport and Infrastructure Council decision.

The Consultation RIS forms part of a six week consultation process and all stakeholders are invited to participate in this review by making a submission in response to the Consultation RIS (published in July 2018) with submissions invited by 31 August 2018.

Marsden Jacob Associates will compile and analyse all responses that are received. Following the analysis of submissions, a Decision RIS will be prepared, setting out the recommended approach.

The Consultation RIS

The Consultation RIS sets out details of the proposed phase 2 reforms around the establishment of an independent price regulator and implementation of a forward-looking cost base. In addition, it identifies and assesses the likely costs and benefits arising from the proposed changes. The Consultation RIS is provided below:

How are submissions made?

The submission period has now closed.

All stakeholders were invited to make a submission on the consultation RIS by Friday, 31 August 2018.

Respondents were invited to:

  • answer questions outlined in the Consultation RIS; and
  • provide general comments on the proposed reforms and the content of the Consultation RIS.

A Word version of the suggested submission cover sheet and consultation questions are available here.

Public submissions are now available through this link.

Stakeholder forum and webinar

A stakeholder forum and a webinar were held on 8 and 9 August 2018, respectively.

The slides presented by Marsden Jacob on the analysis contained in the RIS are available here.

The slides presented by the National Transport Commission on how a Forward-Looking Cost Base would operate are available here.

A recording of the webinar which includes both these presentations as well as a questions and answers session is available on this link

Both of these events:

  • provided an overview of the reform process and the consultation;
  • outlined the Consultation RIS methodology; and
  • answered questions from stakeholders.

Further information

For further information on this consultation, please contact Matthew Clarke on (03) 8808 7400 or via email.

Speak with the right person

We specialise in developing bespoke solutions for bespoke issues.

The best way to find out if we are right for your needs is by speaking to the right person. So, skip the website and let’s talk. You can find the right person to speak with using the lists below.