In the afternoon the Government's GPS announcement included a nationwide rise in the excise levy, or fuel tax, of 3.5 cents per litre (4.025 cents with GST) for each of the next three years. The first rise will be imposed on October 1.
From that date, the average Auckland household will pay $3.80 more per week for petrol.
Those with the lowest 30 per cent of incomes will pay an average $2.26 more per week. Households with the highest 30 per cent of incomes will pay more than twice that: an average $4.79 more per week.
Both the Government and the council say the extra taxes will allow them to undertake what Finance Minister Grant Robertson has called "New Zealand's largest ever 10-year plan for transport investment".
Standing in the giant KiwiRail freight yards at Onehunga today, Robertson promised "a long-term pipeline of transport projects that are fully funded".
"The GPS prioritises linking production with distribution," he said, "and that means a focus on freight."
Transport minister Phil Twyford said that "for the first time" rail would be fully considered alongside roads when the Land Transport Fund was allocated by the NZ Transport Agency. "They will consider the merits of road and rail on a case by case basis and allocate the funds to whichever will do the job best."
The Government would also "lift the standard of roads right across the country", he said, adding that "the vast majority of serious crashes are on local roads".
Associate transport minister Julie Anne Genter spelled out some of the detail of the increased commitment to road safety. She said $2 billion more would be spent on state highways with a focus on safety, and $800 million on local roads, also with a safety focus.
More median barriers and roadside barriers will be introduced for open roads, and some stretches may have lower speed limits too. There will be more roundabouts and other measures to make roads safer in built-up areas.
The Government has also made a 99 per cent boost to funds for promoting road safety and the use of public transport, cycling and walking.
Government spending on transport will rise from $3.6 billion in 2017/18 to $4 billion in 2018/19. By 2027/28 it will be $4.7 billion.
The way funds are allocated to local regions will change. Currently, the Government tends to match the funds of local councils, dollar for dollar.
"We pay 50:50 now," said Twyford. "That will rise in many cases to government paying 75 or even 80 per cent."
For example, funding for high priority projects around Tauranga will rise to 75 per cent, and in Gisborne it will be 84 per cent. That takes pressure off ratepayers and gives councils significantly more bang for every buck they commit themselves.
The Government Policy Statement (GPS) contains four "strategic priorities": safety, value for money, access and the environment. It sets out spending priorities for the whole country and complements the Auckland Transport Alignment Plan agreed between the Government and the Auckland Council.
Changes to transport spending
• $4 billion over 10 years to "establish rapid transit investment".
• 116 per cent increase in funding for walking and cycling infrastructure.
• 99 per cent increase on road safety promotions, alcohol interlocks and promotion of cycling and walking.
• 96 per cent increase in regional transport projects that improve safety, resilience and access.
• 68 per cent increase for public transport, to be spent on operational subsidies and new projects.
• 42 per cent increase on local road improvements.
• 11 per cent less on state highway improvements.
