A number of local councils around the country are considering a regional fuel tax.
It follows a series of Official Information Act requests by Newshub where 14 councils admitted they were thinking of implementing such a policy.
The fuel tax has become an option as a result of the Land Transport Management (Regional Fuel Tax) Amendment Bill, which was introduced to Parliament by transport minister Phil Twyford in March.
The bill has allowed Auckland to follow up on an 11.5 cent per litre tax from July.
However, the earliest other councils are able to implement a regional fuel tax is 2021 with a maximum of 10 cents per litre.
Road Transport Forum chief executive Ken Shirley says is comes as no surprise other councils are following Auckland’s lead.
“As the transport sector predicted, the Government’s bad idea of an Auckland Regional Fuel Tax has become contagious and is now infecting various other parts of the country.
“With a number of councils obviously seeking this option it is likely to result in unintended consequences such as forcing transport operators and fuel retailers out of certain regions to avoid the tax.
“That is, of course, if price spreading doesn’t just make a mockery out of the whole concept anyway.
“It is undeniable that regions such as the Westland struggle to maintain their roading infrastructure, however there is a far better way for the Government to support them.
“A simple increase in fuel excise and RUCs nationwide could be aligned with an increase in the financial assistance rate (FAR) allowing councils to access more funding from the National Land Transport Fund than the 53% they get now.
“This would maintain the integrity of the funding system and wouldn’t burden small councils with having to administer and enforce a regional fuel tax,” Shirley says.
ACT Leader David Seymour is also slamming the policy.
“The Government could have applied this tax to Auckland only, but they made it nationwide,” Seymour says.
Councils thinking of a regional fuel tax:
– Bay of Plenty Regional Council
– Christchurch City Council
– Environment Canterbury
– Gisborne District Council
– Greater Wellington Regional Council
– Hamilton City Council
– Hurunui District Council
– Rangitikei District Council
– Tauranga City Council
– Thames Coromandel District Council
– Waikato District Council
– Waikato Regional Council
– Westland District Council
– Western Bay of Plenty
