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The Government tax on petrol and diesel could rise by two cents a litre next year, followed by a 1.5 cents a litre in 2013, to fund new infrastructure projects.
The Government today confirmed a series of roading and train projects it says are "the most significant investment in public transport infrastructure" in more than three decades.
Transport Minister Steven Joyce confirmed the Government's scheduled a fuel tax rise for 2012, but says it has made no final decision yet on the size of the increase.
He said the Government will make a final call closer to the time.
The Ministry of Transport said the increases could be in the order of 2 cents a litre in 2012 and 1.5 cents a litre in 2013.
Earlier this year, the Government deferred the introduction of a planned extra 1.5 cent fuel tax for 12 months.
$36 billion on roads and trains
The Government Policy Statement on Land Transport Funding (GPS) released today outlines $36 billion of spending over the next ten years on roads and trains infrastructure.
The funding for local roads and walking and cycling would allow "steady improvements in those parts of the network".
Among the projects confirmed were:
- $1.6 billion in the development of Auckland's metro rail system, which comprises:
- $600m for Project DART
- $500m for the infrastructure required to support electrification
- $500m loan funding for the purchase of electric trains
- $400m on Wellington's metro rail upgrade, which has included double-tracking to Waikanae and the purchase of 48 new two-car Matangi trains.
- A further $88.4 million for upgrades to the Wellington metro rail network as part of a funding and ownership package with the Greater Wellington Regional Council.
Joyce said the spending represented "by far the most significant investment in public transport infrastructure'' since new trains were introduced in Wellington in the late 1970s.
"Taken together, the National Land Transport Fund investments and the parallel rail investments we are making are a huge investment in transport for a country of New Zealand's size,'' Joyce said.
The new GPS would take effect from July next year and would help guide the development of the next National Land Transport Programme.
Joyce also announced a new Road Maintenance Task Force to try and improve value for money and cut costs for roading authorities.
The taskforce was set up alongside the new GPS to encourage initiatives in road maintenance that saved money without sacrificing quality.
Some authorities had failed to achieve better value for money in the past two years.
The task force, to start work next month, would be made up of people from local government, industry, and the NZ Transport Agency (NZTA).
It would issue findings in a report by April 2012.
Govt 'up to its neck in tar'
Labour's Transport spokesperson Shane Jones said Joyce was "totally preoccupied with building roads" and a "master of tar" after the announcement.
"His announcement today that he intends to build even more new state highways shows how bankrupt his vision has become," Jones said.
"New Zealand needs an integrated transport policy that makes best use of state highways, public transport, rail and shipping, but Steven Joyce can't get his head around more than one part of the equation.
He said Joyce was refusing to enter a "meaningful dialogue" with Auckland over public transport infrastructure.
Green Party transport spokesperson Gareth Hughes has also slammed the GPS as "short-sighted".
"The National Government has prioritised spending on new motorways above more sustainable alternatives, effectively locking our economy in to the price of oil for at least another ten years," he said.
