Auckland's road funding gridlock unclogged

By STUART DYE transport reporter

Auckland's woeful transport network has finally received the seal of approval for an extra $1.6 billion funding package.

In what local and national politicians called "an historic agreement" the region's decision-makers put pen to paper with the Government to clinch the deal for a package designed to get Auckland moving.

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 unclogging the city's roads.

The agreement, finalised yesterday in Wellington, means motorists will pay an extra 5.6c a litre petrol tax from April 2005 to fix the worsening traffic crisis.

In addition, the package will see tolls introduced on certain new roads and a new governing body, the Auckland Regional Transport Authority, will be formed.

Announcing the deal, Transport Minister Paul Swain said transport officials were now in a position to make progress.

"Our growing economy and population requires increased investment. This is an important investment in New Zealand's economic infrastructure."

The country's largest council, Auckland City, had expressed concerns when the package was proposed in December.

It did not go far enough and still left a funding shortfall, said Mayor John Banks.

But the chairman of the Auckland Mayoral Forum, John Law, said the forum was satisfied with the $1.6 billion.

"We are not asking for more money. We are very happy with the package. The challenge for Auckland now is to spend the money," said Mr Law.

Mr Banks said last night the time had come to stop talking and start building.

There was money in the piggy bank and major transport infrastructure projects ready to go, he said.

"It's time to kick backside and tell them just to get on and do it."

The petrol tax rise 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.

There are still details to work through surrounding the formation of the regional transport authority.

The Government favours a body, owned by the Auckland Regional Council, in charge of planning, financing and fixing public transport.

The Cabinet is to meet early next month to pass the legislation required for the new structure.