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Fuel tax to pay for rail system

Published: 8:12AM Friday July 04, 2008 Source: Newstalk ZB

Plans are underway for a modern electric rail system in Auckland, but it will come at a cost to motorists.

The Auckland Regional Council plans to make use of the recently passed regional fuel tax legislation, by eventually adding five cents a litre onto petrol to build the system.

Chairman Mike Lee admits it is terrible timing with petrol already at record prices, but says it will be well worth it as the city will be transformed to a modern international city.

Lee says the petrol increases will be gradual, with the first cent per litre being added next July. He hopes the rail system will be operating by the 2011 Rugby World Cup.

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