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More petrol tax to pay for motorways

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More petrol tax to pay for motorways

3News NZ

Brownlee says increases are required to pay for the Govt's roads of national significance

Brownlee says increases are required to pay for the Govt's roads of national significance

Petrol excise tax and road user charges will be hiked over the next three years to help pay for the Government's motorway plans.

Public-private partnerships and tolling could also be used to raise funds.

Transport Minister Gerry Brownlee on Tuesday announced petrol excise duty will rise by three cents a litre on July 1 in 2013, 2014 and 2015, and road user charges will increase "by an equivalent amount".

He says the increases are required to deliver the Government's roads of national significance programme, include the Puhoi to Wellsford "holiday highway", and other transport projects in the upper North Island.

The guaranteed funding increases will enable the NZ Transport Agency to begin four new projects in the 2013/14 financial year.

Those are the Rangiriri and Tamahere-Cambridge sections of the Waikato Expressway, the Mackays to Peka Peka section of the Wellington Northern Corridor, and the four-laning of the Groynes to Sawyers Arms section of the Western Corridor in Christchurch.

The Government is also considering tolling Transmission Gully, or a public-private partnership to build it and help deliver its roads of national significance programme, Mr Brownlee said.

The announcement comes a day after the Green Party unveiled a plan to build a second fibre cable linking New Zealand to Australia and the United States, which is says would cost 0.8 percent of the $12 billion the Government is spending on new motorways.

Green Party co-leader Russel Norman says the 13,000-metre cable could be built for the same amount as the Government spends on 3.3km of motorway.

NZN

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Comments

18/12/2012 7:55:15 p.m.

Kathy wrote:

In 2008 we got some immature little school boy shouting show me the money Phil. Now Brain dotgone Key is probably screaming show me the money Bill, at the top of his lungs. More cost increases for struggling families to absorb, the reality is that only the overpriveldged wont feel this.

18/12/2012 6:34:32 p.m.

Blair wrote:

Here is an idea, make the regions that will benefit from this pay the increase. I say petrol should be increased in areas like Auckland where the improvements are being made. Why should people in Invercargill pay for Auckland's roads?

18/12/2012 3:06:39 p.m.

Mike wrote:

The report does sound accurate in some aspects ...

"Green Party co-leader Russel Norman says the 13,000-metre cable ..."

It wouldn't be the first time that the Greeens miscalculate by 1000! so this 13km long cable will stretch from the US to NZ, to Aus ... and will be so cheap because its only 13km long! This matches the Greens print money policy, and their revenue=profit support.

Reality is NZ will hardly notice the fuel tax rise. Our frieght industry will a little, and will passs it on to thier customers, who will pass it onto us. But like smokers in 2000-2005, we wont cut back much so it will make little difference.

18/12/2012 12:09:17 p.m.

boom wrote:

@Bill, treaty payments now over a billion dollars and rising, whanau ora etc etc etc etc etc ...we have to pay for it somehow.

18/12/2012 11:10:21 a.m.

Bill wrote:

Don't believe a word Politicians say when they say it will be for 3 years. I lived in NSW when they put on a tax called 3 x 3, 3 cents a litre for 3 years, that was around 22 years ago and it's still on their price. Once these air heads add a Tax it never gets taken off, time to express your views to your local members and stop these thieving clowns now before it's too late. Remember folks it doesn't affect these clowns as we are paying for their petrol also.

18/12/2012 11:05:32 a.m.

Rob Edward wrote:

Excellent news, the tax take should be increased more!