Media Release: 17 May 2007

Budget’s Fuel Tax Commitment Great News For Motorists

“The AA is delighted the Government has announced that all money collected through petrol taxes will be spent on transport. For many years the AA has been asking for exactly this on behalf of New Zealand’s motorists,” says Mike Noon, the AA’s General Manager for Motoring Affairs.

“We also welcome the Budget’s additional $145 million for roads. This money honours the Government’s promise to offset rising costs and keep the Transit 10-Year State Highway Forecast road construction programme on track.”

Mr Noon says “the Government has also provided New Zealand’s regions with the ability to advance their local transport projects by introducing a regional fuel tax.”

“We welcome the requirement that councils must consult with motorists and the local community on both the amount of any proposed regional fuel tax and what it will be spent on.”

“The AA supports the government’s intention that any Auckland regional fuel tax spending will be balanced between public transport and roading - both need more investment. We also endorse the Government’s intention to borrow money to invest in Auckland transport and use regional petrol tax revenue to service the debt.”

“The Government has today delivered a responsible and practical Budget for New Zealand’s motorists,” concludes Mr Noon.

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