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National halves transport spending to fund tax cut

22 August 2005 Media Statement

National halves transport spending to fund tax cuts

After months of Don Brash promising he would outspend Labour on transport, John Key's numbers reveal he will spend less than half as much as Labour would from the Crown Account over the next three years says Transport Minister Pete Hodgson.

This revaluation comes four months after Brash promised to gradually shift all the petrol tax into roads in a speech to the AA; a move that would cost $600 million from the Crown Account over the term of the next government. Earlier this month, Brash promised the Contractors Federation that he would spend this $600 million on top of everything Labour had announced within the last month. That promise would cost Brash $1.795 billion in spending on transport from the Crown Account.

"All John Key has committed to is part of the $300 million announced by the Labour-led government for transport in Budget 2005, and three years worth of spending from the extra $500 million announced by the Labour government in July. All up, Key has announced spending of $605 million out of total $1.235 billion committed by Labour.

"National has dumped spending packages for Auckland, Wellington, the Bay of Plenty and left no room for one planned by Labour for the Waikato. All up, John Key has committed to cutting $635 million in spending on transport from the Crown account over the next three years should they gain power.

"Now we know the answer to the question on Brash's billboard; 'what's your petrol tax for?' With the National party it's not for spending on roads, but for putting $92 per week into the pockets of those, like Don Brash, John Key and all MPs, that earn $100,000 a year."


National's broken promises

Brash speech to the AA 1 April 05

Not available on National's website but available by email from: christian.judge@parliament.govt.nz

"We will increase the funds available for roading above what is currently planned by $100 million in the first year, and thereafter by a further $100 million per year, so that by the end of our second term all of the roughly $600 million that is currently collected in petrol tax but used for purposes other than roading is spent on developing and maintaining our road network.

Brash speech to the Contractor's Federation 5 Aug


" We have already announced that, under a National Government, we will gradually…… increase funding on road construction until investment in roading at least equals the amount raised from the petrol excise tax.

"That move will direct $1.8 billion more into roading over the next six years than Labour had committed as of last month, and $3.5 billion extra over nine years."

Transport spending from the Crown Account announced by Labour

Package 06/07 07/08 08/09 Three year total
Auckland $900 m $100 m $100 m $100 m
Wellington $885 m $15 m $60 m $115 m
Budget 05 $300 m $100 m $100 m $100 m
July 05 $500m $125 m $140 m $140 m
Bay of Plenty $150 m $5 m $10 m $25 m
Waikato Details to be announced December 2005
Spending with Labour $345 m $410m $480 m $1,235 m

Transport spending from the Crown Account under National
Bold =cut

Package 06/07 07/08 08/09 Three year total
Auckland $900 m $100 m $100 m $100 m
Wellington $885 m $15 m $60 m $115 m
Budget 05 $300 m $100 m $100 m $100 m
July 05 $500m $125 m $140 m $140 m
Bay of Plenty $150 m $5 m $10 m $25 m
Waikato Details to be announced December 2005
Shifting petrol tax into roading $100 m $200 m $300 m
Total with National $125 m $240m $240 m $605 m

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