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.

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