By BERNARD ORSMAN
Every New Zealand motorist will pay an extra 5.6c a litre for petrol from April 2005 to cover the cost of a huge road-building and public transport programme aimed at lifting economic growth and fixing Auckland's worsening traffic crisis.
The petrol tax and a separate Government contribution will raise $1.62 billion over 10 years for Auckland.
This is on top of $5 billion already committed to improving the city's transport woes.
Auckland still needs a further $4 billion to pay for its transport wishlist, which includes the $3 billion eastern highway and a new $1.5 billion rail system.
Tolls, congestion charging and infrastructure bonds could provide this money.
The petrol tax will also provide $1.35 billion for transport projects in other parts of the country.
Unlike Auckland, they will not get a separate Government contribution. In the upper North Island, Waikato will get $162 million, Northland $81 million and Bay of Plenty $121 million.
Auckland's $1.62 billion is made up of $720 million from the new petrol tax and a $900 million Government contribution from existing petrol taxes siphoned into the consolidated fund.
Prime Minister Helen Clark yesterday played down any quick-fix solutions in Auckland, saying people could expect to see changes over time.
"An important part of the package addresses the unique problems in Auckland resulting from the population and economic growth, historical under-investment and constraints on transport from having an isthmus and two harbours," she said.
The petrol tax increase will add about $1.60 a week to the average household fuel bill.
Owners of light diesel vehicles will pay an extra $6.22 per 1000km in road-user charges.
The increased road-user charge will ensure that owners of the country's 200,000 four-wheel-drive vehicles do not escape the tax grab.
The new charges follow a 4.7c-a-litre petrol tax increase in February last year to help relieve Auckland's congestion.
By April 2005, the Government will have increased petrol taxes by 10.3c a litre.
The package also suggests tolls on new roads and charging motorists to drive on existing roads.
But Finance Minister Dr Michael Cullen said the social and environmental impacts of this could outweigh the economic benefits.
He said infrastructure bonds, including Auckland-specific bonds, were another possible way of raising money for transport projects.
Political and business leaders and groups such as the Automobile Association welcomed the transport package, in particular the extra money for Auckland.
Employers and Manufacturers Association (Northern) chief executive Alasdair Thompson said the package was fair to Auckland and other parts of the country.
At a briefing at Eden Park, Helen Clark told councillors from throughout the region that to get the extra money they had to accept a new governance structure to manage Auckland's transport needs.
The Government has proposed an Auckland Regional Transport Authority owned by the Auckland Regional Council to plan, finance and fix public transport and play a role in paying for local roads.
The authority, to be operating by July next year, would be overseen by an independent board of directors.
The directors would be appointed by eight members of the ARC and one member from each of the seven Auckland councils.
Another body, Auckland Regional Holdings, will be set up under the ARC to own the $1 billion of assets held by Infrastructure Auckland and other infrastructure the ARC may acquire.
Helen Clark said the Government had not put state highways under the Auckland Regional Transport Authority because they were part of the national transport strategy.
She also told the ARC and councils to update their regional transport and growth strategies and district plans to give clearer guidance on transport priorities.
Auckland councils have until January 30 to reach agreement with the Government on the package.
Auckland City Mayor John Banks gave the package 7.5 out of 10.
But more work was needed on the governance structure to ensure it was acceptable to the region.
"The challenge now is to build a robust firewall between the ARC and the proposed Auckland Regional Transport Authority and the region's huge infrastructural assets."
What's in the package
* A 5.6c-a-litre petrol tax increase from April 2005.
* An equivalent increase in road-user charges for light diesel vehicles.
* 35 per cent of the $207m raised each year from the petrol tax and road-user charges to go to Auckland.
* The other 65 per cent shared throughout the country on a population basis.
* The Government to give Auckland an extra $90 million a year from its own coffers.
* New transport planning and funding bodies in Auckland.
Government of New Zealand:
Investing for growth - a transport package for New Zealand