Government upping transport investment, but Aucklanders face fuel tax double-whammy

Thursday, 28 June 2018

Finance Minister, Grant Robertson, and Transport Minister, Phil Twyford, announce the latest in a series of Government policies on infrastructure and transport across New Zealand.

The Government looks set to place a major emphasis on rail to solve the country's transport challenges, its new 10-year plan suggests.

The new Government Policy Statement (GPS) on Land Transport, announced on Thursday, also looks to help solve Auckland's gridlock problem, with the assistance of 3.5 cent petrol excise increases over the next three years.

Transport Minister Phil Twyford says the plan contains 'record investment in the roads, rail and public transport for our growing regions and cities, and save lives on our roads'.

It increases investment from $3.6 billion this financial year to a record $4b in 2018-19. This would to rise to $4.7b a year by 2027/28.

Finance Minister Grant Robertson says the country has a 'poor track record of planning for growth in our major cities'.

* Budget 2018: 'No surprises' for transport in Auckland

* Auckland Council, Government commit $28b towards Auckland transportation infrastructure**

Finance Minister Grant Robertson, left, and Transport Minister, Phil Twyford, have announced the Government's priorities on infrastructure and transport across New Zealand.

The GPS is a guide for decisions makers on where the Government is willing to spend its money.

Rail and Auckland commuters are winners this time around, but the plan comes at a price – Aucklanders in particular face a double-whammy, with petrol excise increases coming on top of a just-approved regional fuel tax.

'To fund the infrastructure for our cities and regions to thrive, and save lives, there will need to be increases in excises and charges,' Twyford said

There will be three increases in petrol excise duty of 3.5 cents a litre from September 30, and equivalent increases in road user charges from October 1, and further 3.5 cent increases in 2019 and 2020.

'This will cost the average family 83 cents a week this year, rising to $2.50 a week by 2020.'

The excise increase, Twyford said, would fund $5b of investment over the next 10 years.

For the first time the policy statement brought rail into the 'land transport funding and decision making framework'.

'When thinking about how we move goods around the country, we need to invest in the projects that will move those goods from source, to manufacture, to export, to purchase as quickly and cost-effectively as possible,' Twyford said.

'We also want to reduce carbon emissions and reduce deaths on the roads. Now sometimes that will be through trucks and high quality roads, and other times it will be rail.

'For the first time, this Government will treat road and rail equally and on their merits and allocate funding for the one that does the job best.'

A report released last year, Twyford said, estimated the economic value of rail to New Zealand at $1.5b a year.

'This Government policy statement that we're announcing today puts a priority on building the Third Main rail line through the southern suburbs in Auckland,' he said.

'That will allow commuter passenger and freight rail to move freely on that vital piece of rail.'

The announcement appeared to be good news for commuters facing Auckland gridlock to and from work.

'Auckland alone loses $1.3b a year in productivity to congestion,' Twyford said.

'We will tackle gridlock in Auckland by giving commuters options through major road projects and upgrades such a Mill Road and Penlink.

'[The plan] will complete the expressway projects begun under the previous government and allow for future state highway upgrades, with up to $9.5b for state highway improvements.'

Finance Minister Grant Robertson said New Zealand had a 'poor track record of planning for growth in our major cities'.

Twyford said the Government would also make $6.2b available for regional roads and upgrades and maintenance.

'We're going to lift the standard of roads right across the country. The vast majority of serious crashes happen on local roads and that's where we're going to focus more safety investment,' he said.

'The New Zealand Transport Agency will increase their share of costs for certain high and very high priority locally-led projects, meaning councils can get more transport investment without asking more of ratepayers,' Twyford said.

Associate Transport Minister Julie Anne Genter acknowledged the loss of seven lives after a two car collision north of Waverley on Wednesday – one of the worst road crashes in New Zealand's history.

'This is an unjustifiable … tragedy in New Zealand,' she said.

'Every year thousands of New Zealanders are being killed or seriously injured on our roads in preventable crashes.

'More funding will be available for targeted safety improvements that will save lives.'

In many cases, Genter said, lives could be saved by basic improvements like median and side barriers.

'We know people will make mistakes on the road, we're all human, but basic safety treatments can mean those mistakes aren't fatal,' she said.

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