Government Reveals Transport Plan for the Next Decade

The coalition government recently unveiled a 10-year transport plan. It includes new road tolls and increased petrol taxation to pay for the envisaged roads of national and regional significance.

An outline of the plan was released for consultation in March. It included an increase in fuel taxes of 12 cents a litre in 2027, and a further rise to 22 cents in 2029. Increases to vehicle registration fees by $50 over two years contribute added funds to the projected $70b of spending through to 2034. These added revenue streams will also fund a $500m pothole prevention fund. 

Questions remain over the exact costs of the new roads of significance. The government has often said it will use a range of revenue options, including public-private partnerships and tolling. Transport Minister Simeon Brown said in a statement that all the Roads of National Significance would be in line for tolling to assist with their delivery.

The plan also confirmed the government’s promise to abolish Auckland’s Regional Fuel tax. It did this today, removing 11.5c per litre at the pumps. That brings the price of 91ULP down from $2.92 to $2.81, and 95ULP and diesel fall by the same amount. 

What else is in the plan? The government is pondering the introduction of congestion charging in various cities but there’s no detail or indeed a decision on where, when or how much as yet.

Brown said “I can’t give you a particular time indication at this stage.”

He added that preliminary work was being done on the additional Auckland Harbour crossing. “It’s a commitment … because it’s critically important to the future of Auckland.”

The government announced last month two further Roads of National Significance, and also introduced “Roads of Regional Significance”.

Brown and Finance Minister Nicola Willis said they had been advised of a “significant funding gap of up to $1.5b”. They told the NZ Transport Agency Waka Kotahi there was no extra funding available and to deliver these new roads “within the existing funding envelope”.

The government has committed an extra $1b in this year’s Budget to the National Land Transport Fund.