Government promises not to increase petrol taxes for three years, starting 2021

Transport Minister Phil Twyford.

The Government has promised not to hike petrol taxes or road user charges for three years, starting next year, as it bolsters the amount of money its spends on transport.

The $48 billion planned transport spending package is the largest on record – $3 billion higher than the 2018 plan and $10 billion higher than 2015's.

Transport Minister Phil Twyford said the increased level of spending would help New Zealand's economic recovery from Covid-19.

The spending plans are outlined in the draft Government Policy Statement (GPS) on land transport – a document, released once every three years, outlining how transport money will be spent over the coming decade.

This GPS comes into effect next year, before it is refreshed and released again 2024 with new spending focuses.

Twyford, who released the plan this morning, said the Government is not proposing raising petrol taxes – including road user charges and the petrol excise – from 2021 to 2023.

The reason for this, according to Twyford, is because the Government has made good progress in addressing the infrastructure deficit with the petrol tax revenue from GPS 2018.

He blamed the previous National Government for that deficit.

"This GPS shows our Government is putting the pedal to the metal on our balanced transport policy while committing to a massive infrastructure spend over 10 years,"
Twyford said.

The planned $48 million spend does not include the $6.8 billion in transport spending announced by the Government in January as part of its $12 billion infrastructure plan.

In total, Twyford pointed out, the Government has committed $54 billion towards New Zealand's transport network from next year until 2031.

"[The spending plans] will help give the transport construction industry certainty during the current global economic headwinds," Twyford said.

Roughly a fifth of this spending would go towards road safety, Twyford said.

"Safety remains our Government's top priority and we're planning to invest $10 billion in our strategy to reduce the number of deaths and serious injuries on the road by 40 per cent," he said.

"In the first three years alone, Road to Zero will invest nearly $3 billion in safety infrastructure like median barriers, safety campaigns and road policing."

The regions will get an extra $1.2 billion in road upgrades through Road to Zero in the first three years, Twyford said.

The 2021 GPS focuses on safety, better travel options, improving freight connections and climate change.