Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


More secure funding base for land transport

More secure funding base for land transport

Fuel excise duty and road user charges for light vehicles will be indexed to inflation from 2006 as part of the government’s transport strategy, Finance Minister Michael Cullen said today.

“The indexation will apply to the proportion of the excise [17.725 cents of 36.2 cents per litre] used to fund land transport. All RUC revenue is used for roading.

“The effect of the decision, which was taken as part of the Investing for Growth transport package announced in December, will be to put transport on to a more secure funding base.

“It also means that the proportion of the total excise duty going to land transport will continue to grow and the proportion going to general funding will continue to fall.

“Spending pressures will arise in the future as the costs of building roads increase and new technologies make vehicles more fuel efficient reducing the excise revenue per vehicle, per kilometre,” Dr Cullen said.

Fuel excise is due to increase by 5 cents per litre [excluding GST] from April, 2005 with an equivalent increase for RUCs for light diesel vehicles. The first indexed increase will take place in April, 2006. At expected average rates of inflation, each annual increase will be well under half a cent per litre.

The April 2005 increase will raise around $207 million a year. This will be distributed proportionally around the country according to population. In response to official information requests, the documents relating to the Investing for Growth transport package will be available later today http://www.treasury.govt.nz/release/investinggrowth/

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news