13 March 2009 Media Statement

Government plan to dump regional fuel tax a huge step back to the past

The Government’s short-sighted intention to dump the planned regional fuel tax has huge immediate implications not only for Auckland, but also for the rest of the country, say Labour transport spokesperson Darren Hughes and Auckland Issues spokesperson Phil Twyford.

Darren Hughes says: “The reality is that the Government cannot possibly borrow enough money to pay for all the transport investment that is needed around the country. If it borrows enough to pay for the big projects in Auckland, the rest of the country will miss out on vital roading and public transport infrastructure.”

Phil Twyford says: “Transport Minister Steven Joyce apparently has no problems with particular large-scale projects in Auckland, like rail electrification, but nevertheless canning the regional fuel tax creates huge uncertainty.

“It took a long time to get agreement among Aucklanders on transport priorities. The tax was part of a carefully negotiated and long overdue plan to build Auckland a decent public transport system. There’s no evidence of a new considered government plan to replace the one being arbitrarily canned.”

Darren Hughes said it was “ironic that the Government is considering reducing contributions to the Cullen Super Fund because of the need to borrow, and yet it seems prepared to borrow up large for Auckland’s transport needs when there is no need to do so because a considered and agreed plan was already in place.

“The real tragedy is that if the Government is forced to borrow to proceed with the vast and necessary investment in Auckland, it won’t be able to afford to look after the rest of the country. We can kiss goodbye to Transmission Gully in Wellington, for example, and new motorways, arterial routes and upgraded public transport in Canterbury are now just pipedreams,” he said.

Phil Twyford said Aucklanders needed immediate reassurance on matters like integrated ticketing and ferry terminals and rail station upgrades. “A huge amount of detailed planning has been tossed out the window just because the Government won’t commit to a long-term transport vision for the city. That is a real kick in the teeth for the region just weeks before the Royal Commission is set to reveal its long-term vision for Auckland governance.”

Darren Hughes said the dumping represented a step back to the past. “Instead of having a plan for the future, we are returning to ad hoc strategies. The mark of a great city is one that knows exactly where it’s going. The Government is undermining Auckland’s ability to do just that, and penalising the rest of the country at the same time.

“The people of Invercargill, for example, should not have to pay for Auckland’s rail electrification, but Prime Minister John Key and Steven Joyce clearly think it’s okay if the rest of the country subsidises Aucklanders,” he said.

”The Government is telling Southlanders, Cantabrians, West Coasters, East Coasters, Wellingtonians and the rest of us that there is no level playing field in transport funding any more.”

ENDS

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