Increased petrol taxes are set to take place under the Government’s newly approved 10-year transport plan.
The Government Policy Statement 2018 on Land Transport, approved by Cabinet on Thursday, will see three increases in petrol excise duty of 3.5 cents a litre from September 30 and matching increases in road user charges from October 1.
Further 3.5 cent increases will take place in 2019 and 2020 bringing it to 10.5 cents per litre.
Transport minister Phil Twyford says the taxes will fund $5 billion of investment over the next decade.
“This will cost the average family 83 cents a week this year, rising to $2.50 a week by 2020.
“If the opposition intends to scrap this funding, they must explain which $5 billion worth of roads, public transport projects, and safety improvements they would cancel,” he says.
The transport plan increases investment from $3.6 billion in 2017/18 to $4 billion in 2018/19.
This is on top of the $1 billion already invested in projects such as Auckland’s City Rail Link. Councils will invest a further $1 billion a year.
Speeding up freight movement in the regions, making roads safer and pushing city projects are other key targets, Twyford says.
“Auckland alone loses $1.3 billion a year in productivity to congestion. We will tackle gridlock in Auckland by giving commuters options through major road projects and upgrades such as Mill Road and Penlink.
“Throughout New Zealand more commuters will be able to leave the car at home because of investment in public transport, walking, and cycling.
“This investment will unleash the potential of our cities. It will complete the expressway projects begun under the previous government and allow for future state highway upgrades, with up to $9.5 billion for state highway improvements.
“Regions are set to gain through investments to help freight flow faster and more efficiently.
“Up to $6.2 billion will be available for regional road and local upgrades, along with more funding for rail upgrades and a big boost to maintenance after years of neglect,” Twyford says.
