KEY POINTS:
There are several reasons for being sceptical about the regional fuel tax, most of which will be used for the billion-dollar electrification of Auckland's rail network. Why, for example, should drivers pay for the development of another mode of transport? Why is it being introduced when, despite a
lull, petrol prices seem to be staying high? And what are the guarantees that electrification will, indeed, ease traffic congestion? In such circumstances, those shepherding the tax should surely have aimed for an introduction as free of controversy as possible. Not one that sees 1c a litre of the fuel tax being used in a blatantly political manner to pay for most of the $183 million Penlink road, a toll-free route to the Whangaparaoa Peninsula.
Understandably, this has attracted many critics. The Green Party said the Government had flouted a fuel tax law provision requiring eligible projects to be consistent with Auckland's regional land transport strategy. It might have added that it also seems incompatible with local councils' efforts to limit urban sprawl. The Automobile Association, for its part, said many other projects of higher regional significance had not been made beneficiaries of the tax. All these criticisms have some validity, and all reinforce the cynical electioneering that is behind the Penlink decision.
This is a ploy based solely on the importance of the road to Whangaparaoa residents. That factor led National MP Lockwood Smith to consider crossing the floor this year to support the regional fuel tax legislation. It was assumed then that Penlink would be a private-public partnership toll road. It seemed an ideal candidate, and still does. But pork-barrel politicking such as this is always a temptation when it falls to the Transport Minister to approve applications for funding from the fuel tax.
There are other causes for concern. The Auckland Regional Council's plan to impose a tax of 5c a litre in one hit this year was watered down because of the impact of high fuel prices. The tax will now start at 2c next July, rising to 5c in July 2010 and 9.5c from July 2011. That is a very fast climb, even if surging petrol prices will probably disguise it to a degree. The 9.5c a litre - 8c of which will be for rail - is scheduled to apply through to 2039 to support a debt of about $1.5 billion. That is asking much of drivers, given the number of litres pumped into tanks in Auckland every day and the tax revenue from petrol already retained in the land transport fund. One thing is certain; the regional tax must be abolished as soon as it has served its purpose.
In many ways, it is regrettable that this controversy has increased the level of anger over the tax. Aucklanders' increased patronage of rail offers an insight into the possibilities offered by a reliable, frequent and fast service. The fuel tax provides the most straightforward means of ensuring the type of progress that will see a core fleet of electric trains operating by the 2011 Rugby World Cup. Already, a smart start has been made. Construction crews have begun replacing road bridges between Grafton and Newmarket to make room for electrified lines below. This indicates a refreshing sense of urgency.
No time is the right time for the introduction of such a tax. Spiralling consumer costs mean the current timing is particularly uncomfortable. It has required a degree of courage for the regional council to plough ahead. Its resolve should have spurred the Government to play a straight bat to applications for funding. Instead, it has helped to plunge the tax into disrepute.
