Yesterday’s quick U-turn from the Government on the reported shift to an emissions reduction focus for the National Land Transport Fund (NLTF) highlights a more fundamental problem with transport policy making.

Forcing road users to subsidise walking, cycling and other activities is not only unfair on them, but will not achieve its desired goal of reducing emissions.

Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“The Fund was set up with a very simple principle: The amount you pay towards the upkeep of our roads should be linked to the effect your vehicle has on them. The money raised from these taxes and charges goes into a pot that pays for roads maintenance and investment.

“But road users are now subsidizing non-road projects through the Fund, including walking and cycling routes, uneconomical railway lines, and the ‘Road to Zero’ advertising campaign too. All the while, our roads – which will always be necessary for Kiwis – continue to deteriorate.

“And while the Government might have the noble motivation of reducing emissions, it misses the crucial point that our Emissions Trading Scheme means any reduction from cuts to road projects or increased public transport investment will be offset by greater emissions in other areas.

NOTES TO EDITORS:

In the last government financial year to 30 June 2022 (including 3.5 months of the fuel tax cut), the breakdown of income to the National Land Transport Fund was as follows:

• Road user charges: $1,904m
• Fuel excise duties: $1,783m
• Vehicle regulation / licensing: $235m
• Track user charges from KiwiRail: $7m
• Road user charges – Gov funding to replace lost income due to fuel tax cut: $186m
• Fuel excise duties – Gov funding to replace lost income due to fuel tax cut: $189m

While the spending from the Fund was as follows:

• State highway improvements: $1,010m
• State highway maintenance: $796m
• Local road improvements: $105m
• Local road maintenance: $720m
• Investment management: $60m
• Road policing programme: $394m
• Public transport services: $429m
• Public transport infrastructure: $304m
• Walking and cycling improvements: $104m
• Road to zero: $285m
• Rail network investment programme: $287m

The New Zealand Taxpayers’ Union is an independent and membership-driven activist group, dedicated to being the voice for Kiwi taxpayers in the corridors of power. Its mission, lower taxes, less waste, more accountability, is supported by 200,000 subscribed members and supporters.

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