One step closer to Auckland Regional Fuel Tax, as Bill gets first Parliament reading

Tuesday, 27 March 2018

It's expected the tax would collect around $170 million per year to go toward fixing Auckland's congested transport infrastructure.

Aucklanders are getting one step closer to a Regional Fuel Tax.

A key plank of Auckland Mayor Phil Goff's 2016 election campaign, the Labour-led Government introduced the bill to Parliament on Tuesday night on its first reading.

The Regional Fuel Tax was also a key plank of Auckland Mayor Phil Goff's 2016 election campaign.

The Land Transport Management (Regional Fuel Tax) Amendment Bill would allow Auckland Council to levy an expected 10c per litre on Auckland petrol sales.

It's expected the tax would collect around $170 million per year to go toward fixing Auckland's congested transport infrastructure.

'This Bill is a chance to fix a problem people in Auckland face every day – a gridlocked transport system that is only getting worse,' Phil Twyford said.

'Parliament is being asked to rush this bill through, unlike other new taxes Labour is proposing no standard select committee process, not even a working group,' National MP Matt King said in Parliament.

* Auckland's $1.3b congestion cost

* A right Auckland traffic snarl**

Just opened the debate in the Parliament on our bill to allow Auckland Council to levy a Regional Fuel Tax that will contribute $1.5 bn over 10 years to building the city a modern transport system and providing a congestion-free alternative.

— Phil Twyford (@PhilTwyford) March 27, 2018

In 2017, the Automobile Association found a 10 cents per litre regional fuel tax would 'ballpark' cost the average Auckland motorist driving an average car $125 per year extra.

Transport Minister Phil Twyford said the tax would be on petrol and diesel for a period of no more than 10 years giving the region time to fund 'certainty' around needed works.

'Funds raised in the Auckland region can only be spent there.'

Twyford, who tabled the bill, said it would be an 'important step towards helping Auckland meet its transport challenges'.

Auckland can 'no longer afford to do nothing' because congestion has caused 'lost time and productivity' for the city, he said.

'Despite advances in transport technology, every day people in Auckland struggle to get to where they need to go on time.

'This Bill is a chance to fix a problem people in Auckland face every day – a gridlocked transport system that is only getting worse.'

National MP Matt King, one of several opposition MPs who spoke against the Bill in Parliament on Tuesday, said it was rushed, poorly-considered pork-barrel politicking.

'They're going to build a tramline from the Auckland CBD to the Prime Minister's electorate, over $2b worth,' King Said.

'Parliament is being asked to rush this bill through, unlike other new taxes Labour is proposing no standard select committee process, not even a working group'.

If passed, the bill would open the floodgates for other local governments to levy their own fuel taxes after 2021, the Northland MP said.

'This is tax and spend politics.'

Debate resumes on the bill's first reading after 2pm on Wednesday.

Under the Bill, Auckland Council must first consult with residents on the proposed projects it wishes to fund. It must then obtain Government approval before the regional fuel tax can be implemented.

The Bill will be referred to the Finance and Expenditure Select Committee, which will call for public submissions.

The law is expected to be passed in June, ready for a fuel tax to be put in place in the Auckland region from 1 July.