Use of road tax queried

Press, 16 May 1989, Page 5

Use of road tax queried

PA Wellington All money collected from road users should be devoted to transport, the Automobile Association says.

The call follows the Government’s announcement that a new agency to replace the National Roads Board and Urban Transport Council will be formed to integrate planning and funding of roads, road safety and passenger transport.

The secretary-general, Mr George Fairbairn, said the new organisation, Transit New Zealand, would be hamstrung if it did not receive all the revenue collected from road users.

Figures released by the Ministry of Transport show that about $6OO million from fuel excise will still go into the Government’s consolidated fund.

Mr Fairbairn said that money should either be given to Transit New Zealand or the Government should reduce fuel excise. Money collected from road users should be clearly designated and used in that area.

Motorists pay 10.9 c for each litre of petrol to the

National Roads Board. A further 25.8 c a litre goes into the consolidated fund. In the past, 16c of the 25.8 c went to pay the Marsden Point refinery debt. But since the Treasury took over the debt, it is unclear how much roaduser money from the consolidated fund is used for that debt. The Ministry of Transport corporate policy manager, Mr Alan Kennaird, said Transit New Zealand’s projected ex-. penditure for 1989-1990' was about $732 million. About $575 million would be for roading, $52 million for passenger transport services and $lO5 million for road safety and enforcement. Transit’s projected revenue for 1989-1990 was about $740 million. This included $3OO million from fuel tax (10.9 c a litre), $262 million from road-user charges and $l2l million from registration and licensing fees.