Govt eyes fuel tax for transport initiatives

The Government is proposing a fuel tax increase of between nine and 12 cents a litre to fund a raft of new land transport plans that focus on investing in road safety and rapid rail.

The tax would be a double whammy for Aucklanders who can also expect Auckland Council to introduce about 10 cents a litre in regional fuel taxes to pay for major transport projects.

The Government has unveiled its 10-year plans for land transport, which includes huge investment in road safety and rapid rail at the expense of state highway upgrades.

The speed limits on some roads have been described by Associate Transport Minister Julie Anne Genter as ‘‘inappropriate’’ and it’s possible the limits could be lowered in some cases.

The annual $4 billion a year National Land Transport Fund is a work programme carried out by the New Zealand Transport Agency (NZTA), which is guided by the priorities set by the Government in the Government Policy Statement (GPS).

Transport Minister Phil Twyford said with road deaths increasing every year since 2013, priority has been given in the GPS to road safety improvements.

‘‘It’s about how we drive and the roads we drive on,’’ he said.

‘‘It’s absurd to call it a road toll, we will not tolerate it any longer.’’

‘‘We’re going to invest in what makes the most difference – regional and local roads, and targeted improvements to the state highway network,’’ Twyford said.

As for the double whammy for Aucklanders, he said they realised the current system was not working and that it wasn’t fair for people who lived in places like Levin to pay for Auckland’s transport projects.

The focus is well and truly on regional roads and rail but Twyford denied that meant urban areas like Wellington and Christchurch would miss out.

But National’s transport spokesman Jami-lee Ross says the Government’s proposal will be met with ‘‘anger and disappointment right around New Zealand’’.

Cutting $5b out of the state highway construction programme over 10 years is an ‘‘extraordinary blow for regional New Zealand from a Government which has claimed to stand behind it’’.

‘‘Instead the Government is saying their needs are secondary and ensuring tourists can get from the Auckland CBD to the airport is more pressing.’’

Ross said Aucklanders could face an extra $10 to $15 at the fuel pump every time they fill up – ‘‘and in less than three years the rest of New Zealand could be paying that fuel tax too’’.

The other big investment areas in the GPS are regional roading improvements, public transport – which is receiving a 46 per cent hike in funding – and new investment in rapid transit and rail.

The GPS sets out an 81 per cent average funding increase over three years to continue road safety promotion, alcohol interlocks and promotion of public transport and walking and cycling.

The biggest loser in this is state highway improvements. Projects already committed to, including the Roads of National Significance under the last Government, would be completed but overall funding would decrease by 11 per cent.

Walking and cycling infrastructure is getting a 248 per cent boost in funding over three years and a whole new area is being set up to deal with funding for rapid transit.

This will allow $4b over 10 years to establish rapid transit investment with an initial focus on Auckland – it’s the first time money has been set aside in the national fund for rapid transit.

Twyford pointed out that while funding ranges showed a decrease in rapid transit investment initially, in later years the intention is to continue with more investment.

Associate Transport Minister Shane Jones said rebalancing transport investment would help regions thrive.

‘‘Over the past nine years, National Land Transport Fund spending was reduced in Taranaki, Southland, West Coast, Otago, Northland, Hawke’s Bay, Gisborne and the Bay of Plenty by up to 30 per cent.’’