Fuel tax may have wider repercussions
Phil Goff’s fuel tax will mean Auckland residents will have to pay at the pump, as well as in rates on goods and services.
The first to be stung by the mayor’s 10 cent per litre tax for busways and light rail, will be those at the pump. But wider repercussions will see the tax costs of companies and organisations passed onto residents as well. Businesses have indicated the extra expense will be passed onto consumers.
Ratepayers will be stung with further costs with Auckland Council confirming it too will be required to pay the tax. The council’s fuel bill for the 2016/2017 financial year for its 815 vehicles came to $1,527,111.48, general manager procurement Jazz Singh said. This included council controlled organisation Auckland Tourism Events and Economic Development, and half of the Regional Facilities Auckland (RFA) Fleet.
RFA spent about $33,000 fuel for the other half of its fleet, and sprinkler pumps and generators. Auckland Transport paid $370,701.50 for fuel for its 149 vehicles, and the harbourmaster used an additional 30,000 litres a year.
It is unknown how the tax will affect the AT Hop card and bus, train and ferry users. Watercare used 738,525 litres of fuel running 290 vehicles and plant operations, while Panuku Developments spent $18,417 running 10 vehicles.
CIty Parks Services, whose more than 200 staff maintain some of the super-city’s public space spent $447,273.56 on fuel running its 442 vehicles, 172 items of plant and equipment and 500 smaller items like petrol run edgers and blowers.
The $239,650.39 addition to the greater council’s fuel bill, had the tax been in effect, doesn’t include the raft of other contractors at City Care, Wildlands, Treescape, Urban Maintenance Systems and Ventia tasked with super-city maintenance.
The council may also see a drop in Ports of Auckland profits. The port used 2,802,525 litres of diesel in the last financial year, meaning a $280,252.50 hit if the tax was in effect. Partly council owned Auckland Airport, and government-owned freight and people movers KiwiRail, are both waiting to see details on the tax and what it will mean for their operations.
KiwiRail couldn’t confirm if it was looking for a diesel distributor outside the borders of Auckland.