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Greens would raid petrol tax to start house rental programme

Greens would raid petrol tax to start house rental programme

Transport Minister Gerry Brownlee says Green Party Finance Spokesman Russel Norman’s plan to raid the National Land Transport Fund to pay for his “Rent to Buy Housing Scheme”, shows a complete lack of knowledge of public finance in New Zealand.

“Mr Norman seems unaware that roading funding is collected from road users through fuel taxes, user charges and fees. That money is then dedicated to the National Land Transport Fund, to pay for road policing, public transport and road maintenance.

“This dedicated funding or ‘full hypothecation’ was introduced in 2008.

“The Greens can’t have it both ways – paying for houses from road taxes would cause serious problems for the funding of core transport services such as public transport.

“The lack of investment in new roading projects would create long term bottlenecks in our transport system and create congestion, leading to greater fossil fuel use.

“”First it was crank up the photocopiers to print money, now its let’s rob Peter to pay Paul.” said Mr Brownlee
ends

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