Auckland Council signs off 10-year budget, as fuel tax continues to worry some councillors

Thursday, 28 June 2018

Auckland Mayor Phil Goff says the 10-year budget delivers $26.2 billion of investment into Auckland’s infrastructure

Auckland Council has officially confirmed its 10-year budget, with some councillors still worried about the impact of a fuel tax on the region's poorest communities.

Deputy Auditor-General Greg Schollum on Thursday confirmed the plan is 'fit for purpose'.

In what represents Auckland's largest ever investment in infrastructure, the budget pumps $26.2 billion into the city over the next decade.

The largest part of that will be going toward transport where Auckland Council plans to commit $12b, of which $4.3b will be leveraged from the regional fuel tax.

Councillor Efeso Collins re-iterated his worry about the regional fuel tax.

That will take the overall transport investment in Auckland to $28b, with Goff indicating a further $4b could be on the way from the Government to help with light rail.

However, the fuel tax remained a major concern for some councillors.

Manukau Ward councillor Efeso Collins re-iterated his worry about the impact on the poorest community in the city, Otara.

Collins said while it might be wealthier parts of the city that paid a higher share, they could afford to.

'The issue though is, as a proportion of incomes, it will be the poor who will pay the most.'

Waitakere ward councillor Linda Cooper voted for the fuel tax, but acknowledged that poorer parts of the west will struggle, and may not have good enough public transport as an option.

'I can afford an extra $5 a week, but there are parts of my constituency who can't,' she said

Auckland Mayor Phil Goff labelled the plan a 'build-it budget' when unveiling it last month.

'This build-it budget is going to get Auckland moving with investment of more than $26b over 10 years to reduce transport congestion, unlock greenfield housing development, clean up our beaches and protect our environment.'

The budget included an average general rates increase of 2.5 per cent.

Apart from special levies like the fuel tax, the budget introduces a number of other targeted rates.

Targeted rates will address the quality of Auckland's waterways and threats to native forests.

'The consultation showed that Aucklanders care about the environment with strong support for both proposed targeted rates to address serious environmental issues in our region,' Goff said.

'Time and again we've seen dismay from Aucklanders that say every time it rains there are about 50 or 60 beaches that are no longer fit for swimming in.

'There was a plan to deal with that but it was a 30 year plan, we have been able to compress that into 10 years.'

That was made possible through Aucklanders getting behind a new water quality targeted rate, Goff said.

A total of $452m from that, plus an additional $400m from Watercare as a result of their normal increases in water rates, would go toward cleaning up beaches and harbours and the building of stormwater infrastructure.

A new natural environment targeted rate would allow a $311m investment to address the spread of Kauri dieback and tackle pests.

At a glance:

- The budget represents a capital investment of $26.2b

- $12b for transport

- $452m in stormwater infrastructure and beach/harbour clean up

- $311m from a natural environment targeted rate to tackle Kauri dieback

- $40m for a climate change response fund

- $90m for coastal asset management

- $120m for sports and recreation

- $475,000 to Auckland City Mission to fight homelessness.