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In this issue

Welcome to On The Horizon
Getting real on fuel economy
No more RUC refunds
New improved FBT tool
Less car technology
Watch out for trains
Government's new Health and Safety Act

Welcome to On The Horizon

Fuel prices might be down at the moment, but fuel economy is always an issue for drivers. Whether you want to keep costs down or just reduce your impact on the planet, you’ll be interested to read the truth about fuel consumption figures, and how to minimise fuel usage. Also in this edition of On The Horizon we look at changes to RUC refunds and the new Health and Safety legislation, the updating of LeasePlan’s FBT reporting tool and how the NZTA is reminding drivers to keep an eye out for trains. And finally, we look at the new technology that is become ubiquitous in today’s cars — do we need it, or even want it?

Getting real on fuel economy

Ever wondered how accurate the fuel consumption statistics used by car manufacturers and dealers are? A Whanganui motorist has recently found out the hard way. A Marton man bought a vehicle from a dealership in April last year, based on its advertised fuel economy of 7.7 litres per 100km.

However, the best he could achieve driving the car himself was 9.4 litres per 100 km, and at one point the vehicle was averaging 12.9 litres per 100 km. He took the dealership to the Disputes Tribunal and was awarded $6000 in compensation. He also sold the vehicle.

So where does the difference come in? The fuel consumption figures which must be displayed by motor vehicle traders are generated for new cars in a laboratory environment, with the vehicle effectively running on a ‘car treadmill’. This cuts out the effects of road surfaces, weather and wind, loads, changes in terrain and other ‘real world’ factors.

So these advertised figures are best used as a guideline only or, more helpfully, as a point of comparison between different makes and models. As motoring commentator Jack Biddle says, ‘If you ever attempt to achieve, or better, the claimed fuel consumption figures on a regular basis then be prepared to become very anti-social with your passengers.’

To keep fuel consumption low over the coming summer, follow these tips:

Minimise short trips.
Drive smoothly around town, rather than accelerating and braking hard.
Maintain a safe following distance and a constant speed.
Corner smoothly.
Accelerate before hills, not up them.
Keep your car serviced and your tyres correctly inflated.
Go easy on the air con.
Minimise loads within the car — don’t drive around with stuff you don’t need.
Don’t idle for too long.
Don’t speed.

No more RUC refunds

As of September 1, the New Zealand Transport Agency will no longer pay refunds for unused road-user charges (RUC) when a vehicle is sold or returned to a leasing company. Any unused RUC must now remain with the vehicle, and its value negotiated between the seller and purchaser.

New improved FBT tool

LeasePlan’s new, improved and updated online FBT (Fringe Benefit Tax) tool is now available. The tool, which can be used on a desktop computer, tablet or smartphone, is now simpler and clearer for both drivers and fleet managers to use to collect and collate data.

The tool has a new interface, making it easier for information to be entered by drivers. They simply click on the date and enter a reason for the exemption or personal contribution.

It’s also more convenient for fleet managers, making it easier to log an FBT return online. The tool gathers and compiles your drivers’ data for you, saving you administration time and enabling greater accuracy when filing your returns with the IRD.

For more information about LeasePlan's FBT service, talk to your Account Manager.

Less car technology

Never use that thingamajig that controls the whatsit? Didn’t know your car had a button that controlled the whatever? If you’re not able to take advantage — or not interested in — all the new tech that your car comes loaded with nowadays, you’re not alone.

A survey by American research firm JD Power found while car makers are investing billions of dollars in developing new tech gadgets for new vehicles, the majority of drivers are not using them. The 2015 DrIVE (Driver Interactive Vehicle Experience) Report measured driver experiences with in-vehicle technology features during the first 90 days of ownership, and found that at least 20 per cent of new-vehicle owners have never used 16 of the 33 technology features measured.

The five features owners most commonly report that they ‘never use’ are in-vehicle concierge (43 per cent), mobile routers (38 per cent), automatic parking systems (35 per cent), head-up display (33 per cent) and built-in apps (32 per cent). And there were 14 technology features that 20 per cent or more of owners actively did not want in their next vehicle, including Apple CarPlay and Google Android Auto.

Owners who say the car dealer did not explain the feature have a higher likelihood of never using the technology. Furthermore, features that are not activated when the vehicle is delivered often result in the driver not even knowing they have the technology in their new vehicle.

However, drivers were keen to utilise technologies which would enhance the driving experience and improve safety, such as vehicle health diagnostics, blind-spot warning and detection, and adaptive cruise control.

Another side-effect of increasing in-car technology is the increased claims costs for vehicles damaged in an accident. Chip Lackey, senior director of the insurance practice at J.D. Power, says while some technologies, such as lane-departure warning, are making vehicles safer, the insurance industry is very concerned about the driver-distraction hazards caused by some of the other technologies.

‘In addition, technology drives up the repair and replacement costs. A slight bumper scrape that would normally cost a few hundred dollars to repair can catapult a claim into thousands of dollars when a park assist camera or other sensors are damaged.’

Watch out for trains

The New Zealand Transport Agency has launched a new ‘Expect Trains’ campaign, to try to improve driver awareness at rural rail level-crossings in rural areas. Locomotive-size billboards and signs will be placed near dangerous crossings around the country, to remind drivers not to be complacent, and slow down and check for real trains before they cross the tracks.

Nearly half of the 1320 public road level-crossings on KiwiRail’s network are protected solely by Give Way or Stop signs, rather than a combination of bells, alarms and barriers. There are also a further 1300 level crossings on private land which have signs only.

Celia Patrick, NZTA’s Director of Rail Safety and Access and Use Group Manager, says local drivers often don’t perceive the risk of rural level-crossings to be very high, and this complacency can lead to risky behaviour.

‘Services on rural train lines are usually infrequent so the majority of times local drivers cross at a level crossing, they see an empty track. This leads to a bit of autopilot behaviour, where they fail to look properly in both directions to see if a train is coming,’ says Patrick. ‘We really want drivers in rural areas to sit up and take notice of level crossings and the life-sized train billboard should make them do just that.’

Statistics from the TrackSafe Foundation show that around 22 collisions occur per year between trains and motor vehicles on public road crossings. In the past 10 years, only about 11 per cent of these occurred where half-arm barriers plus flashing lights and bells were installed at crossings.

Government's new Health and Safety Act

The government’s new Health and Safety at Work Act, which will come into effect in April next year, will have significant impacts on all businesses — especially those with employees who drive as part of their job.

One of the biggest changes is the clarification of who is responsible for workplace safety, requiring businesses to appoint a newly defined entity known as the Person Conducting a Business or Undertaking (PCBU). A PCBU has the primary duty under the new law to ensure workplace safety — for employees and those affected by the undertaking. Despite the name, a PCBU will usually be a business rather than an individual person, unless they are a sole trader or self-employed.

Another new aspect of the law is that an officer of a PCBU (such as a director, board member or partner) must exercise due diligence to ensure that the PCBU complies with its duties. This places a positive duty on people at the governance level of an organisation to actively engage in health and safety matters, and means the directors of a company could be held liable for failing to ensure that a PCBU complies with health and safety regulations.

Because the new Act defines a workplace as a place where work is carried out for a business or undertaking, and includes any place where a worker goes or is likely to be while at work, this includes vehicles.

This has serious implications for any company with fleet vehicles, which are essentially mobile workplaces. Fleet managers will need to have access to information on how the vehicles are being used and if they're being operated in a safe manner at all times. They should also be aware of their maintenance status and the capability and qualifications of their drivers, to ensure that they know of any avoidable risks and to ensure they are in a position to take steps to minimise them. GPS monitoring, telematics and online reporting are likely to become vital tools.

Road safety charity Brake has recently published a guidance report (on driver training and education) for employers with staff who drive for work. The report includes guidance on training and education, developing positive attitudes and behaviours and advice on key road-safety education topics such as speeding and distracted driving.

Caroline Perry, Brake's NZ director, says with the health and safety reforms, ‘Companies need to ensure they are doing everything possible to keep their drivers and other road users safe when employees are on the road. By making sure that drivers have the necessary skills, and providing education to improve their attitudes and behaviours, companies can have a large impact on road safety.’

WorkSafe New Zealand is currently preparing formal guidance material to help companies and workers comply with the new act. This will be available in early 2016, and in the meantime, WorkSafe suggests:

Familiarise yourself with the key concepts of the legislation
Review your health and safety practices
Identify health and safety risks in your business and take steps to prevent these from causing harm
Lead by example
Make health and safety part of your workplace culture.

LeasePlan will keep you updated on the new legislation and how it is likely to affect your business, before the new regulations come into force.