Motorists Pay Too Much Already
10 February 2005
FFNZ: Motorists Pay Too Much Already
Roading projects shouldn't suffer if the planned five-cent rise in petrol is delayed, said Charlie Pedersen, Vice President of Federated Farmers of New Zealand (Inc)
Finance Minister Michael Cullen has indicated that the Government may delay the planned April fuel tax increase.
"The answer is simple. The Government should just reduce the amount of fuel excise it diverts into the consolidated fund by five cents a litre to make up the shortage."
Currently 18.5 cents of the 36 cents (plus GST) a litre fuel excise paid by motorists is siphoned into Government funds and used for other purposes.
"If Dr Cullen reduced the amount taken from motorists then much needed road projects could go ahead without increasing petrol prices.
"The old chestnut that the Government needs the money for schools and hospitals doesn't wash when it has billions of dollars of surplus funds in its coffers.
"Federated Farmers challenges the Government to act in the interests of the country and think like investors and not accountants," said Mr Pedersen.