Draft Government Policy Statement carves out transport priorities

A draft Government Policy Statement on Land Transport  released on Wednesday includes a proposal to increase fuel excise duty by between 9 and 12 cents a litre over three years and an equivalent increase in road user charges paid by diesel and heavy vehicles.

The draft government policy statement (GPS) 2018 proposes a shift in transport investment, prioritising safety, access to a wider range of transport options, the environment and value for money.  There is a specific focus on regional roading improvements, state highway maintenance and public transport, along with new investment in rapid transit and rail.

The proposed increase of between 3 and 4 cents a year over the next three years continues the trend of recent years, with charges going up by 3 cents a year in 2009 and 2010, 2 cents in 2012 and 3 cents again in 2013, 2014 and 2015.

The estimated average cost of 3 cents a litre extra for a driver of an average car filling up a 50 litre tank once a fortnight is around 75 cents a week or $39 a year.

The funding increase will go toward a 42% increase in spending on local road improvements, a 96% increase in spending on regional roads and a 22% increase in local road maintenance along with an 81% increase in road safety and demand management.

The GPS 2018 covers the period 2018/19 – 2027/28, setting out Government’s priorities for land transport and guiding the allocation of over $4 billion a year from the National Land Transport Fund by the New Zealand Transport Agency.

Engagement on the draft GPS closes at 5pm, 02 May.


To view the draft GPS 2018 click here.

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