The Government’s decision to increase petrol tax and road user charges are outrageous examples of tax and spend at a time when the country is being asked to tighten its belt, says Labour’s Transport spokesperson Phil Twyford.
Phil Twyford said Transport Minister Gerry Brownlee today confirmed increases in petrol excise duty of two cents a litre and an equivalent increase in road user charges of an average of 4.1 per cent. The increases are expected to bring in an extra $90 million in 2012-13 and $100 million a year after that.
“The increases will hit motorists at a time when Kiwi families are struggling to make ends meet. Businesses are working overtime to keep afloat and the last thing they need is an increase in transport costs.
Roads should be funded on a user pays basis, and petrol tax and RUCs are the way this is done. I’d like to see us over time move to actual usage charging and congestion charging but there are some privacy issues around that.
It is worth recalling that Labour increased the petrol excise tax by 11.2c when in office – and off memory this was not all spent on transport, but some went to the consolidated fund.
Likewise Light RUC charges went up 66% under Labour, so the crocodile tears over a 4% increase are quite amusing.
I’ve said for some time that I think petrol tax and road user charges should in fact be automatically set to fund all transport projects which meet a certain minimum benefit to cost ratio.