21 January 2011

Govt motorway builders ignoring high petrol prices, will cost Kiwis

High petrol prices will continue to hit kiwi households and businesses in the back pocket if the Government doesn’t change its outdated approach to transport planning, said the Green Party today.

“We have asked the New Zealand Transport Agency what oil price assumptions are used in their latest models for the Roads of National Significance, and we have been told that oil prices are not even taken into account,” said Green Party Transport spokesperson Gareth Hughes.

"It is amazing that as petrol hits $2 a litre the Government still has its head in the sand on the role of oil prices in transport planning.

"It is irresponsible of the NZTA to continue using woefully out of date assumptions.

“It’s obvious that high petrol prices affect travel demand, and as we saw in 2008, high prices will have severe economic impacts on New Zealand because our transport system is so dependent on oil.”

A Parliamentary Library report entitled The Next Oil Shock found that ‘as a country that is reliant on oil imports and heavily dependent on cheap oil for its major sources of income, New Zealand is highly exposed to oil shocks’.

“The Government is ignoring its own advice from 2008, which predicted volatile oil prices increasing over time, and a resulting rise in demand for buses, trains, walking and cycling,” said Mr Hughes.

“People want their tax money managed well, but the Government is spending all of our money on new motorways and blindly assuming Kiwis will be able to afford to buy new fuel efficient cars.”

Research from Colmar Brunton in August found 72% of New Zealanders think the Government should prepare now for future oil price rises by investing in alternative fuels and in public transport.

“The last time petrol was over $2 a litre, New Zealanders switched to public transport, which also happened to reduce congestion more than new motorway connections have recently.

“More than ever, the Government needs prepare for an influx of train passengers and invest in transport solutions like the Auckland CBD Rail Loop and the Wellington inner city light rail project.

“The $11 billion they are spending on motorways is $11 billion we won't have to invest in our rail network and bus services, which are already bursting at the seams due to high demand,” said Mr Hughes.

ENDS

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