Tuesday, August 05, 2008

Regional fuel tax vs. electrified rail network

Auckland, it's happened! We are all going to start to pay more tax on our petrol after the regional council unanimously voted to approve a new regional fuel tax today.

The tax will be phased in over three years, starting with a one cent a litre levy from July 2009, eventually up to five cents a litre.

The intention is to raise more than $600 million to buy new trains once Auckland's rail network is electrified, and for station upgrades.

With the Auckland Regional Council's approval, it now needs to be approved by Government, which lets face it, when have they not approved increasing tax!

I may ride the train to work during the week, but I still drive a car on the weekends. That puts me in a bit of a quandry as to whether I support fuel tax...

There is no doubt Auckland needs to head towards electrifying the rail network, but targeting petrol prices (which are already sky-high and rising) seems futile.

Demand for petrol might well lessen in the not too distant future due to people changing their behaviour (I admit this is probably a stretch at this point, but petrol could soon become unaffordable for a lot of people). What happens then, will the government raise the fuel tax even further to maintain the revenue stream they require to fund electrification?

AA Auckland transport spokesman Simon Lambourne has also questioned the legality and responibility of the ARC in introducing the fuel tax. In a letter to Mike Lee he asks:

"We seek an assurance from you that should the ARC wish to progress a regional fuel tax in the future, then prior to doing so it will undertake a comprehensive consultation process that meets the expectations of the AA, Auckland motorists and the law,"

Can Aucklanders afford it? no, not considering the current ecomonic climate.

Does that even matter? no.

Is the public transport infrastructure more important...? I think it might be, I just can't see all the money needed, coming from petrol tax. So will we get electric trains, running efficiently, cost effectively, on time and with better coverage in time for all the people who will no longer be able to afford to run their cars?

...I doubt it.

Would a more sensible approach be to borrow the money, build a fantastic public transport system, then increase the hell out of petrol prices to pay for it. That way at least when petrol gets too expensive, the public will have a public transport option.

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