Blanket Speed Reductions Increase Prices and Stifle Wages

Responding to National’s plans to reverse Labour’s blanket speed reductions, Taxpayers’ Union Policy Adviser, James Ross, said:
 
“The real cost of reducing speed limits is far more than just changing some signs, and it is not a policy which comes cheap. Trucks, buses and cars rely on being able to get from A to B as quickly as possible to keep the country ticking over. Longer travel times for transport and freight lowers productivity, which in turn means less growth, higher prices and lower wages.
 
“Where there is clear evidence that reducing speed limits on a specific section of road will have a significant effect on road safety, then this option should of course be considered. However, hobbling the economy with blanket reductions is a decision which has been taken far too lightly.
 
“At a time when improving our productivity is more important then ever, we should be looking for ways to safely allow people to travel faster, not slow them down. A return to evidence-based highways policy which makes full use of proper economic assessments will be a welcome change for Kiwis struggling under the cost-of-living crisis.”