Phil
TWYFORD
Transport Spokesperson

12 June 2012 MEDIA STATEMENT
Labour: Road and petrol tax increase ‘tax and spend’

The Government’s decision to increase petrol tax and road user charges are outrageous examples of tax and spend at a time when the country is being asked to tighten its belt, says Labour’s Transport spokesperson Phil Twyford.

Phil Twyford said Transport Minister Gerry Brownlee today confirmed increases in petrol excise duty of two cents a litre and an equivalent increase in road user charges of an average of 4.1 per cent. The increases are expected to bring in an extra $90 million in 2012-13 and $100 million a year after that.

“The increases will hit motorists at a time when Kiwi families are struggling to make ends meet. Businesses are working overtime to keep afloat and the last thing they need is an increase in transport costs.

“And why is it happening? So National can continue to plough billions of dollars into its gold-plated Roads of National Significance which by the Government’s own figures are poor value for money.

“Rather than hit the taxpayer for an extra $100 million a year the Government should be re-thinking its motorway building programme, and looking at ways to get better value from the $3 billion a year transport budget,” Phil Twyford said.

“Most of the so-called Roads of National Significance have a very poor Benefit Cost Ratio. The Government claims they are being built to grow the economy but provides no evidence or data to support that claim. In the meantime all other transport categories, including the maintenance of local roads, are being squeezed.

“There is no shortage of funds in the transport budget. The Government is spending more than $3 billion a year. The problem is the Government has its priorities wrong. It needs to take a more hard-headed and rational approach by investing more in rail and coastal shipping and public transport, instead of pouring $12 billion over the next 10 years into their hand-picked motorway projects.”

ENDS

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