Fuel tax plan to help Auckland congestion

By BERNARD ORSMAN

A national petrol price rise of up to 15c a litre, a 5 per cent increase in rates and a $430 million Government payment are among measures being considered to solve Auckland's transport problems.

The petrol tax increase would come less than two years after a 4.7c a litre increase to help relieve Auckland's congestion.

The Government is also being urged to use more of its fuel tax money for new roads and improving public transport in Auckland.

The measures are among recommendations from Auckland and Government officials to address a $4 billion-plus shortfall in the amount needed to pay for the city's transport requirements within 10 years.

The details are contained in an October 30 briefing paper prepared by officials for ministers and mayors and obtained by the Herald.

It appears to favour improvements to public transport over building new roads.

The measures are being finalised before being presented to councils and to the Cabinet for consideration in next year's budget.

Decisions are due to be made public on December 12.

The paper casts doubt on whether the region's transport wishlist can be financed and built within 10 years.

Even if the money was found, it says, the construction industry would not have enough labour to do the work. It suggested an alternative 15-year programme.

The construction industry could be geared up to double the works programme from $200 million a year to $400 million within three years, the paper said.

But this would lead to a "significant price premium of between 20 per cent and 30 per cent".

Education is now one of the main generators of traffic.

Around 87 per cent of school and tertiary students go by car to lessons at least some of the time, says a study by the Auckland Regional Council and Infrastructure Auckland.

The survey of 1236 parents and students showed about 40 per cent of Auckland's peak hour traffic was related to education.

It included 28,500 trips a day to Auckland University.

The officials recommending petrol tax and rate increase have found difficulties with measures such as tolls, debt funding and a petrol tax limited to Auckland.

When the Government imposed a 4.7c a litre petrol tax in February last year, it was forced to do it nationwide after oil companies complained about collecting it regionally.

Officials are looking at a further nationwide petrol tax of between 5c and 15c a litre and making an allocation to Auckland.

The paper said tolls could be introduced within five or six years - Transit announced on Tuesday the Orewa to Puhoi Northern Motorway extension could be a toll road by 2008 - but said they would have social and economic effects.

It would be important to have public transport alternatives ready beforehand.

The paper said using debt to pay for projects could lead to huge servicing costs after 10 years and the inability to pay for new projects such as a third harbour crossing.

The officials have suggested a one-off Government contribution of $430 million, tied to a 5 per cent rates increase in the region's seven local authorities raising $240 million over 10 years.

The Auckland Regional Council has already budgeted to raise $290 million in transport levies over 10 years.

In one of the boldest suggestions, the officials have urged the Government to give Auckland 5c a litre, or $60 million a year, of the petrol tax money taken into the consolidated fund for non-roading spending.

Transport groups have lobbied for years to spend all the money from petrol taxes on transport, but the calls have fallen on deaf ears.

The Auckland convener of the officials group, Auckland City planning director Dr Jill McPherson, said the final report should be finished next week.

From there, Wellington officials would write a paper to go to the Cabinet on December 8.

- additional reporting, Stuart Dye