Higher Labour transport spend attacked

WELLINGTON: The Government’s proposal to raise petrol taxes and scrap state highways to pay for its transport plans prompted a robust debate in Parliament yesterday about which regions will be most affected.

In one of the more heated afternoons in the House since the Labour coalition came to power, National accused the Government of giving up on provincial New Zealand and piling new costs on families.

Earlier yesterday, Prime Minister Jacinda Ardern denied her decision to raise petrol taxes by 9c to 12c a litre breached her preelection promise of ‘‘no new taxes’’ in her first term.

She told Newstalk ZB Tuesday’s Government policy statement on land transport was a ‘‘routine’’ review that happened every three years, and did not propose new taxes.

She said the petrol excise duty was not a new tax, only an increase to an existing excise.

‘‘Of course I don’t believe I’m breaking a promise, but yes, it would come in this term.’’

In Parliament, Opposition leader Simon Bridges, referring to the double whammy facing Auckland drivers of an increased fuel tax and fuel levy, asked: ‘‘How will announcing petrol tax increases on Auckland motorists of 25c a litre, in just her first six months as Prime Minister, help families supporting their kids?’’

In response, Ms Ardern highlighted that similar petrol tax hikes had been considered by National and that the higher costs were being offset by increases to the minimum wage and welfare payments.

Mr Bridges denied National had also planned to raise petrol taxes, despite official advice indicating that an increase of about 20c per litre would be necessary to cover the costs of nine new highways.

Mr Bridges said that National had instead planned to pay for its transport initiatives through forecast surpluses and existing petrol taxes.

National’s main line of attack in the debating chamber was listing the regions which would lose key transport projects.

One by one, National MPs from the Bay of Plenty, Taupo, and Mid Canterbury said their constituents would be paying more for petrol only to see that money spent in the city centres.

Ms Ardern countered by saying National’s planned highways would only benefit 4% of all road users, far fewer than Labour’s proposed initiatives.

Labour would also be lifting spending on local roads and maintenance of existing highways.

Policy documents show Labour’s transport plan for the next 10 years will cost $4.6 billion a year, $650 million more than National’s 10year plan.

The higher cost will be covered by petrol tax increases of 3% to 4% a year.

Once the Auckland Council’s regional fuel increase is added, some Auckland commuters will be paying up to 22c more a litre.

Defending the tax increases yesterday, Transport Minister Phil Twyford said the new costs were equivalent to a cup of coffee a week and would pay for ‘‘some pretty amazing investments in the transport system’’.

He conceded some motorists in the Auckland region would get no direct benefit for their higher costs at the pump, but they were likely to benefit from the council’s transport plans. — NZME