Fuel tax not only for JAFAs
Sunday Star Times | Sunday, 20 May 2007
Auckland car owners can expect to stump up at least an extra $150 a year for their fuel once the regional fuel tax, announced during last week's Budget, is adopted.
But the New Zealand Automobile Association warns that other motorists shouldn't feel smug that a similar charge won't hit them.
AA general manager motoring affairs Mike Noon said while the focus of the fuel tax had been on what it meant to Auckland and solutions to its roading and transport woes, the government was actually proposing that all regional councils could apply for funding to be repaid by the new tax.
It's a certainty motorists in the Auckland region - from the northern boundary of Rodney District to the southern boundary of Franklin District - will have to pay, as plans to modernise the city's transport system are already under way.
But legislation had to be passed before any of that could happen, Noon said.
The regional council would then need to prepare a plan about what it wanted to do and how much it would cost and release it for public consultation. Only then could a council apply to the government for approval and funds, which would be drawn down as needed.
The fuel tax, up to 10c a litre, would be used to service the debt and would be collected from the oil companies so there was no administration cost to the council, Noon said.
The effect of the fuel levy on a vehicle that used 30 litres of fuel a week was an extra $3 at the most on the regular price. But it was possible the increase to motorists would be incremental and unlikely they would face an immediate 10c jump for the price of their fuel.
Noon said the AA supported the proposed legislation, which allowed regions to make decisions about roading and transport projects and kept the cost within the region as well.
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