Maurice Williamson MP
National Party Transport Spokesman

18 May 2007

Tax on petrol so Cullen can keep spending

“There is no need for yet another tax on the long suffering motorists of Auckland and Wellington,” says National Party Transport spokesman Maurice Williamson.

“Michael Cullen openly gloats that he's going to have a $1.7 billion cash surplus and a $6.3 billion operating surplus, yet he still wants to hammer motorists.

“Dr Cullen’s loose fiscal policy has helped create an environment where he needs to take more money out of householders’ pockets so he can continue to spend up large.

“The regional petrol tax is yet another example of taxpayers being forced to tighten their belts so Labour can spend up large.”

The new 10 cents regional fuel tax is estimated to bring in $120 million in Auckland and $35 million in Wellington per annum. That $155 million is less than 10% of the Cash Surplus.

National will oppose the regional petrol tax.

“Labour trumpeted at the election how much extra they planned to commit to transport. The reality is they have not been able to spend all the money they have ear-tagged for roading and transport.

“They say they want to encourage more Aucklanders to leave their cars at home and use rail network. Motorists in the east of Auckland and on the North Shore, for example, will be taxed to fund a rail network that will have virtually no effect on their driving habits.”

Much of the petrol tax already being paid is not dedicated to the Land Transport Account.

“Weasel words in this Budget, such as "The Government is investigating full hypothecation of fuel excise duty" - is bureaucrat speak for we'll look into whether all the petrol tax collected should go to the roads. National says yes we should.”

ENDS

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