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Yesterday, David Parker β in his capacity as transport minister β unveiled the governmentβs long-term priorities for roading and transport infrastructure, including new busways, train lines and major new motorways.
It would be paid for, in part, by βmodestβ increases to fuel tax β four cents per year β alongside billions in other funding.
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But, as detailed in The Bulletin, National took aim at the proposed tax rise and said it wouldnβt do the same until inflation is back below 3%. (Labour then retaliated, saying that inflation is due to be back below 3% at about the same time as the proposed fuel tax rise would come into place β something of an own goal).
βThe National Party say that theyβre not going to increase these fuel taxes: Well how are they going to pay for it? Is it magic money?"https://t.co/vnKiyyjlJB
β The Spinoff (@TheSpinoffTV) August 17, 2023
Speaking to RNZ this morning, Parker said that people wanted reduced traffic congestion and understood that it needed to be paid for somehow. βOf course we have to spend more on maintenanceβ¦ weβve already pumped a billion dollars extra into that this year and road users have to pay part of that,β he said.
He doubled down on his criticism of National, asking how it would propose to pay for roading projects without asking the public for a little extra. βThe National Party say that theyβre not going to increase these fuel taxes: Well how are they going to pay for it? Is it magic money? How would you pay for it,β he asked RNZ host Corin Dann.
When it was suggested that more tolls could be used, Parker noted that National had opposed a toll being used on the Penlink extension north of Auckland. βI actually agree some roads should be tolled but you canβt do that for general road maintenance or to recover your public transport costs.β
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As for whether the government would choose not to act on raising fuel tax should inflation not lower to predicted levels β or whether they may actually remove fuel excise again β Parker said he didnβt think that would be the case. βIβve got great confidence that inflation is already coming down and itβs predicted by the Reserve Bank by September next year to be in the 1% to 3% range,β he said.