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


Minister should demand all petrol tax goes to roa

Hon Maurice Williamson
National Party Transport Spokesman

21 November 2005

Minister should demand all petrol tax goes to roading

National’s Transport spokesman, Maurice Williamson, says the new Transport Minister should stop reading puerile advice about how to get more revenue from motorists and start demanding that Michael Cullen allocate all petrol tax to the National Land Transport Fund (NLTF).

Motorists already pay substantial tax on petrol. On a litre of 91-octane the figures are:

47.6c in petrol tax.
15.3c in goods and services tax.
62.9c in total tax.

This accounts for over 45% of the price paid at the pump.

Mr Williamson says that of the $1.362 billion petrol tax to be raised this year, only $748 million (54%) is bound for the NLTF. $614 million is siphoned off and goes to the Government's general account.

“At a time when New Zealand has a huge infrastructure deficit and a massive backlog of urgent roading projects, it is a disgrace that over $600 million is diverted for general spending.

“Labour cannot justify this highway robbery when it is running huge fiscal surpluses and when all of the $790 million tax on diesel-powered vehicles goes to the dedicated NLTF; as does the entire $230 million of income from vehicle registration fees.

“The ministry is correct in saying there is ‘strong community resistance’ to attempts to boost property rates to pay for transport infrastructure. Why should motorists and property owners be fleeced even more?

“The Government’s advisory arm should take a lead in advocating that all petrol tax go to the NTLF. This would give New Zealand a real chance to address the backlog of roading projects. The National party actively campaigned on this at the election and will support any moves in that direction,” says Mr Williamson.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Veronika Meduna: The Kaikoura Rebuild

A Scoop Foundation Investigation

Friday will be a big day for people north of Kaikōura – and for hundreds of construction workers who are racing to reopen State Highway 1 in time for the holiday season.

By the afternoon, the South Island’s main transport corridor will be open to traffic again, more than a year after a magnitude 7.8 earthquake mangled bridges and tunnels, twisted rail tracks and buried sections of the road under massive landslides. More>>


BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>


Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>


Members' Bills: End Of Life Choice Bill Passes First Reading

The End of Life Choice Bill in the name of David Seymour has been sent to a select committee for consideration by 76 votes to 44. It is the third time Parliament has voted on the issue in recent decades and the first time such a Bill has made it over the first hurdle. More>>


State Sector: MPI Survives Defrag Of Portfolios

The Ministry for Primary Industries will not be split under the new government, but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety. More>>


Gordon Campbell: On Vulnerable Kids, RNZ Funding, And Poppy

The decision to remove the word ‘vulnerable’ from the Ministry for Vulnerable Children could well mark a whole shift in approach to the care of children in need... More>>





Featured InfoPages