Media Release – for immediate release

26 April 2011

Contractors Welcome Cancellation of Fuel Tax Increase

The Government’s decision to cancel this year’s planned fuel tax increase will provide “welcome relief” for the civil construction industry, says New Zealand Contractors’ Federation chief executive Jeremy Sole.

Mr Sole said the move would particularly help members who were still struggling to get through the effects of the financial crisis, including the lack of work from local authorities.

He also welcomed Transport Minister Steven Joyce’s statement that the next Government Policy Statement for Land Transport Funding (GPS) would provide certainty for the country on the Government’s commitment to supporting transport projects and economic growth.

“We are pleased that the Government has again reinforced its commitment to building the infrastructure that underpins its GDP growth agenda,” said Mr Sole.

“While that might look like self interest from our point of view, maintaining a strong civil construction industry with plenty of healthy competition in the market is in the interests of the entire country.

“It will limit cost increases as much as possible and will ensure visibility of forward work in the uncertain times the industry is currently facing.”

ENDS

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