Bay of Plenty fuel tax rewards questioned

Transport Minister Phil Twyford says the Bay of Plenty is subject to millions of dollars of transport safety improvements. Photo / NZME

A leading transport expert has questioned whether Bay of Plenty residents will actually reap any benefits from an increase in fuel prices.

But Transport Minister Phil Twyford disagrees, saying the Government is prioritising safety and "makes no apologies for that".

On Monday, the second of three annual increases in fuel tax added another 3.5 cents per litre to the cost. Road-user charges also increased.

AA spokesman Mark Stockdale said the increase was about $45 extra per motorist each year.

Stockdale said the tax could be a good thing as the money helped pay for road maintenance, road policing, safety upgrades and public transport. However, in areas like Tauranga, such development was not necessarily happening, he said.

Stockdale referred to the delay of proposed projects such as the Katikati bypass, Ōmokoroa interchange and Tauranga Northern Link.

"The concern AA has is that we are not necessarily going to see any improvements as a result (of the increase)."

Stockdale acknowledged there were safety upgrades under way on State Highway 2 between Waihī and Tauranga but said "it won't help deal with the congestion, or fuel consumption from people stuck in congestion, not as much as a bypass [around Katikati] would".

Stockdale said each person's total dedicated fuel tax contribution into the National Land Transport Fund was about $870 a year and did not include other taxes such as GST.

"We are paying more than ever in tax."

Minister Twyford said the excise tax would cost a person about $40 a year extra and would go "towards transport improvements that will benefit them and their communities for decades to come".

Twyford said, in a written statement, the Government was spending $801m in transport investment over the three years. This included $101m of safety improvements on SH2 between Waihī and Ōmokoroa.

Other projects in the region funded through fuel taxes include the $120m upgrade to the Baypark to Bayfair link.