The road transport sector says it’s “encouraged but not convinced” by finance minister Grant Robertson’s promise to revisit a possible extension of the Government’s transport support package.
Speaking on TVNZ’s Q&A programme on December 4, Robertson was asked if the Government would be looking to extend the fuel relief and public transport measures which are due to end on January 31.
Robertson said Cabinet has yet to make a final decision on the matter.
“But we’re acutely aware of the fact that actually the fuel excise duty cut has contributed to lowering inflation because fuel is such a big part of the CPI,” Robertson said.
“In the end there is no costless decision here because that is the money that pays for our roads and that’s the money that pays for our public transport so it can’t go on forever.
“We will make a judgement very shortly whether or not we think it can be extended, but if it does it won’t be for a long period of time,” he added.
Road freight body Transporting New Zealand is continuing to advocate for an extension on petrol and road user charge price reductions.
Once the relief measures end, the cost to fill a car will go up $10 to $15 overnight, the price of catching a bus or a train will double, and road user charges will increase 36% – at a time when inflation is projected to rise again, it says.
Chief executive Nick Leggett points out this will come at a time when inflation is projected to rise again with the Reserve Bank expecting inflation to increase to 7.5% early next year.
“This is the one direct way the Government can ease cost of living rises for New Zealanders.
“Nobody should be fooled that a recent reduction in fuel costs is an end to volatility at the fuel pump or with any of their other household costs,” Leggett says.
Transporting NZ has released figures showing that to remove the support package, a 45-plus tonne truck and trailer traveling 100,000km, would cost an additional $21,000 to operate.
“That additional cost will go straight onto the cost of groceries and consumer goods, and everything that is being carried by a truck, as those costs have to be passed on. This will hit all consumers and businesses as trucks carry 93% of freight,” Leggett says.
The transport relief package should continue until inflation has dropped below 6%, he adds.
