The South Island is poised for further fuel price increases, writes Jami-Lee Ross.
The cost of living in New Zealand is increasing and Statistics New Zealand has just published information on the price rises we have seen in New Zealand over the past year. The big mover was petrol, where prices increased by 10%, or 20c, in a single year.
That increase is before the Government imposed a new 11.5c a litre regional fuel tax in Auckland, which kicked in this month.
The Government also cemented plans for a country-wide increase of more than 12c a litre over the next three years, starting with 4c a litre at the end of September. This is all going to sting Kiwis' wallets regardless of where they live.
As an Auckland-based MP writing for a southern paper, I'm aware that there might be a few raised eyebrows. The North has traditionally paid less for fuel than the South, so what's the complaining about?
Well, the Government's plans, while marketed as an Auckland-based plan, is anything but and the South Island will see even steeper prices for the necessary costs of transport.
Let's first ask, why it is that the Government is imposing a new regional fuel tax in Auckland? They claim it's time for Auckland to pay more for Auckland transport projects. What could be wrong with that?
The problem here is that it's not just going to be Auckland paying for the new regional fuel tax. Fuel companies are already spreading the cost of the new tax around New Zealand meaning higher prices for the South, too.
According to fuel price monitoring app Gaspy, one of the reasons for higher fuel prices in the South compared to the North is because fuel companies move prices around the country. This is backed up by Ministry of Transport advice on regional fuel taxes.That means that increases in Auckland result in drivers in Otago and Southland paying more, too.
But the biggest concern is that regional fuel taxes could soon be everywhere.
In the legislation that allows fuel taxes to be imposed in Auckland, the Government included an ominous clause that will allow regional fuel taxes to be rolled out across the country by 2021.
That means that all the Government needs to do to impose a regional fuel tax in Otago, Southland, Canterbury, or any other region is to sign off a proposal from a local council.
We already know that 14 councils are preparing proposals to ask for new fuel taxes to be imposed in their regions.
On top of this, the Government intends to raise fuel excise by more than 12c per litre over the next three years, while at the same time shelving roading projects up and down the country.
And where will this new revenue go? A large chunk has been dedicated to funding a tram project in the Auckland CBD that is half-planned and only half-funded.
National's plan for the South Island was more ambitious. In Budget 2017, we committed to a $32billion infrastructure package to ensure all of New Zealand received crucial investment in projects to help us succeed. And we promised no new fuel taxes.
For example, there was $900million of investment into the Christchurch Motorway projects to get the city humming after the earthquakes.
National was also investing $15million in projects targeting road safety across key tourist routes in Otago and Southland. There was $45million for improvements to the Caversham Highway, one of the largest roading projects to be delivered in Dunedin in decades. In the Queenstown Lakes District, there was $22million for the new Kawarau Falls Bridge and $21.3million for the Eastern Access Road.
New Zealand, and especially the South Island, doesn't need new taxes and higher fuel prices to fund tram projects in Auckland. The Government is already earning more thanks to the strong set of accounts they inherited and they are borrowing $17billion more than National planned.
We need to ensure that fuel prices are kept down so that New Zealanders can keep more of what they earn, and we need to keep the crucial transport projects that are helping New Zealand stay connected.
-Jami-Lee Ross is the National Party spokesman for transport.
