National will overturn tax

National has confirmed it would overturn Auckland’s regional fuel tax if elected in 2020.

Speaking at his first major economic speech in New Lynn, National leader Simon Bridges promised a repeal of the policy, which allows regional councils to levy an extra 10c tax on fuel within their region for a decade.

Auckland Council voted for the move yesterday, setting a new

11.5c/litre levy on fuel – the maximum amount plus GST – to apply from July 1.

The Government has promised that in this term only Auckland Council will be allowed to actually use the scheme.

It is expected to raise around

$150 million a year or $1.5b over its decade of operation.

Auckland Mayor Phil Goff and Transport Minister Phil Twyford say this $1.5b will ‘‘unlock’’ $4b in investment, contributing to the

$28b transport plan announced last week.

Bridges committed to reversing the legislation if elected in the speech. ‘‘A National government under me will invest heavily in transport – as a former Transport Minister I know how important it is, and how frustrating it can be when the system doesn’t work – but we won’t be using a regional fuel tax to do so,’’ Bridges said.

‘‘The tax is not needed, the enforcement is complicated, and it will hit you in the back-pocket.’’

‘‘A typical Auckland family will have to pay around $700 extra a year as a result of the fuel taxes the Government has announced.’’

Bridges was referring to the national-level increase in excise taxes of up to 12c a litre over three years, as well as the Aucklandspecific regional fuel tax.

MBIE estimate the cost to an average family to be no more than $250 a year.

Bridges has repeatedly refused to confirm whether or not he would remove the national increase if elected in 2020.

‘‘The Government and Auckland Council should be applying more discipline to their own finances in order to properly fund core services such as transport,’’ Bridges said.

‘‘And it isn’t just in Auckland – the legislation allows for a regional fuel tax to be rolled out in other areas around the country too.

Already Christchurch is saying it wants it.’’

Bridges said ‘‘we know that more Aucklanders oppose it than support it.’’

A Colmar Brunton poll found

52 per cent of Aucklanders supported the tax while 43 per cent opposed it.

But National has argued that based on public submissions more Aucklanders are opposed to the tax than are for it – and that the polling is out of date because it concluded before the Government indicated it would raise nation-wide fuel taxes as well.

The polling was conducted between February 22 and April 4.

The draft Government Policy Statement, which indicated the

12c a litre hike over three years, was released on April 3.

However the submission process also ended before the draft statement was released.

Of the 21,000 people who submitted on the plan, 48 per cent opposed the plan while 46 per cent supported it.