Jim Eagles: But wait, there's more

Feeling grumpy about the soaring Auckland Regional Council transport bill?

You ain't seen nothing yet.

After years of neglect, the infrastructure's appalling state has caught the Government's attention.

Unfortunately, its solution in every area is to expand the role of the state and increase the burden on the productive sector.

In the case of the Auckland roading system, the biggest infrastructure problem of all, it is clear that the plan is to pass much of the cost onto the region's ratepayers and motorists.

We've already seen the ARC levy.

The likely next step is a roading loan, financed by a regional petrol tax (10c a litre has been rumoured).

Finance Minister Michael Cullen alluded to this in a speech yesterday to the Auckland Business Network.

We need, he said, "to be open to new ways of planning, constructing, operating and financing ... infrastructure".

Unfortunately, these are not likely to include allowing private enterprise to finance and build new roads, because the Government's rules for public-private partnerships are so unattractive that no company would bother.

Cullen's offer to Auckland is that projects can jump the priority queue "if a community is prepared to meet the cost".

That could be achieved by schemes such as "a regional petrol tax or congestion charging".

It's easy to see why that would appeal to the Minister of Finance.

But there are good reasons for rejecting it.

First, as Cullen acknowledged, "for decades Aucklanders paid more in petrol taxes than they got back".

Second, most of the Auckland roading projects were at the top of the priority list until the recent mysterious review.

Third, the Government collects $1483 million a year from petrol tax and road-user charges yet Transfund proposes spending a mere $975 million on maintenance and construction next year.

Fourth, the last thing Auckland - or New Zealand - business needs is another cost increase.

And there is no need for a tax rise.

The Government can get much of the work done merely by unleashing the resources of private enterprise.

It also has plenty of scope to redirect the money being poured into social projects - or, for that matter, subsidising Tranz Rail - or locked up in the superannuation fund into creating productive assets such as roads.

That would produce huge social and economic benefits without socking Auckland yet again.