Debate in Parliament raged into the early hours of this morning as opposition MPs did their best to stop the Government increasing the petrol tax by nearly five cents a litre.
But everyone knew from the start their efforts were in vain as the Government had secured the support of the
Green Party for its $227 million land transport package.
The Customs and Excise Amendment Bill, increasing petrol 4.7c a litre and road user charges for light diesel vehicles to fund the package, was passed at 4.10am after an 11-hour debate.
The petrol price increase will generate an extra $190 million over the next 16 months, while $37 million will be gathered from road user charges (RUC) on diesel vehicles under four tonnes.
The Government wanted to introduce the package last year but the Greens withdrew support because they did not like the emphasis on roads.
Greens co-leader Jeanette Fitzsimons said they agreed to today's package -- reducing traffic congestion, improving public transport, promoting walking and cycling, and increasing road safety -- because it signalled a "fundamental change in transport direction".
"New Zealand has never had a land transport system or a land transport strategy. It has only ever had a roading strategy and its been an open secret for a long time that when people say land transport in government circles they mean roads," she said.
"This is a signal that there are other elements in a balanced land transport strategy and that this Government is going to promote them."
Deputy prime minister and Alliance leader Jim Anderton said the package tackled serious imbalances which had favoured roads and private cars at the expense of rail and public transport.
"We need private cars and roads but we also need strong, viable alternative networks."
The effect on the public would be "minimal", with the average motorist paying only an extra $1.34 a week, Mr Anderton said.
However, opposition MPs said the increase would hit those who could least afford it.
"It makes a mockery of the promise that Labour made before the election that they would not increase taxes for low-income earners," New Zealand First MP Peter Brown said.
"Make no bones about it, this is a tax increase that will have a real effect on the spending power of income earners."
United leader Peter Dunne said "long-suffering, ever-paying mainstream New Zealand families" would suffer most from the increase.
As well as having to pay each time they filled up, they would cop rises from public transport and freight operators trying to recoup their increased costs.
"And if they live outside Auckland, there is absolutely no guarantee that they will see any tangible benefit in their area as a consequence," Mr Dunne said.
ACT MP Rodney Hide said the bill was a tax grab which had nothing to do with fixing congestion in Auckland or giving New Zealand better roads.
"It's got everything to do with ripping another $227 million off motorists and hard-working families in New Zealand," he said.
"If this was such a good package, we all know that (Prime Minister) Helen Clark would be down here announcing it."
Especially galling was the claim $30 million would go to regional development, Mr Hide said.
"Here's what regional development is -- leaving the money in the regions, leaving it with the people that do the work, leaving it with the farmers, leaving it with the businesses."
National leader Bill English said the increase broke the Government's pre-election promise not to raise taxes.
"I ask a simple question. Why isn't Helen Clark fronting this issue? She's not fronting it because she knows it's bad news," he said.
National supported fixing Auckland's roading problems but said the bill would not do that as only $94 million would actually go to roading. Meanwhile, areas such as Southland would pay $3 million, Christchurch $10 million and Hawke's Bay $5 million but receive no roading benefits, Mr English said.
He also questioned why the increase was needed as tax revenue was already about $200 million ahead of forecast.
"The reason is because he (Finance Minister Michael Cullen) needs the surpluses to feed the super fund," he said.
"So this new tax is the motorists down-payment on the super fund."
The petrol increase was effective from midnight, while the RUC will be imposed from April 1.
- NZPA
Debate in Parliament raged into the early hours of this morning as opposition MPs did their best to stop the Government increasing the petrol tax by nearly five cents a litre.
But everyone knew from the start their efforts were in vain as the Government had secured the support of the
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