Hon Phil Twyford
Minister of Transport
22 March 2018
Regional fuel tax for Auckland a step closer
Legislation to allow regions to apply for a regional fuel tax, initially for Auckland, will be introduced to Parliament
today, Transport Minister Phil Twyford has announced.
“The Land Transport Management (Regional Fuel Tax) Amendment Bill will enable Auckland Council to seek funding for
specific transport-related projects. It would allow funds raised in Auckland to be spent only in Auckland.
“Auckland is at a standstill and the Auckland Council understands the frustration of its ratepayers who are spending
hours of their day stuck in traffic.
“Auckland has gone through massive population growth in recent years and its current infrastructure can no longer
support the city. Improving infrastructure in Auckland is vital for its businesses and its people for whom just getting
to work, school and about their daily activities can be a struggle.
“Solving Auckland’s traffic gridlock is also important for the rest of New Zealand with congestion in the city between
2015 and 2017 estimated to have cost the economy between $1.3 billion a year in lost productivity.
“Under the Bill, Auckland Council must first consult with residents on the proposed projects it wishes to fund. It must
then obtain Government approval before the regional fuel tax can be implemented.
“The Bill will go to Select Committee for public submissions. We expect the law to be passed in June, ready for
potential implementation in the Auckland region from 1 July.
“The Government has agreed to only consider a regional fuel tax in Auckland during its first term in office,” Phil
Twyford says.
Editors notes:
· The regional fuel tax applies to petrol and diesel and can be charged up to a maximum rate of 10 cents per litre, for
a maximum of 10 years. It will be paid by fuel distributors when they deliver fuel to service stations and commercial
users inside the region.
· Rebates, similar to those available for fuel excise duty, will be available to those that do not use fuel on roads.
ends