Investing ALL Fuel Excise in Road Infrastructure
Investing ALL Fuel Excise in Road Infrastructure will Generate Substantial Benefits
Today’s announcement by the National Party that it will progressively divert all petrol excise into improving the nation’s roading network would generate substantial social, economic and environmental benefits says Stephen Selwood, Chief Executive of the NZ Council for Infrastructure Development.
“That’s been the experience in Australia where there is an ongoing multi billion dollar investment in road construction funded by a combination of tolls and taxes.”
Projects in Sydney include the Sydney Harbour Tunnel, Sydney Eastern Distributor, the Lane Cove Tunnel, Cross City Tunnel, the 40km West Sydney Orbital. Melbourne has completed the Melbourne City Link and now have Australia’s largest private public partnership project the $2.5 billion 45km Mitcham Frankston Freeway under construction. There has also been major investment towards four laning Australia’s main highway network.
Benefits from these various projects include:
• Quicker journey times
• Improved work life balance
• Safer roads
• Reduced traffic on local roads
• Improved bus services.
• Integrated cycleway facilities
• Improved pedestrian facilities.
• Improved local access.
• Less traffic noise.
• Improved local air quality.
• Significant economic growth
Independent economists estimate that just one of these projects, the Melbourne CityLink has delivered savings to business of more than $250 million AUD a year and economic growth of more than $300 million AUD, and created about 10,000 jobs pre- and post-construction. (Source: Allen Consulting).
Parallel studies on potential road projects in New Zealand have replicated similar results.
“Internationally the evidence clearly shows that development of a nation’s roading infrastructure is an investment, not a cost”, Mr Selwood said.