$1.6b transport package starts journey in House

By BERNARD ORSMAN

Legislation for the Government's $1.6 billion Auckland transport package, partly financed by higher petrol prices, will be introduced to Parliament today.

The Herald understands there will be little change to the package announced by Prime Minister Helen Clark and several ministers in Auckland on December 12.

The package said every New Zealand motorist would pay an extra 5.6c a litre for petrol from April next year to cover the cost of a huge road-building and public transport programme aimed at lifting economic growth and fixing Auckland's worsening traffic crisis.

The petrol tax and a separate Government contribution worth $90 million a year will raise $1.62 billion over 10 years for Auckland.

This is on top of $5 billion already committed to improving the city's transport woes.

The petrol tax will also provide $1.35 billion for transport projects in other parts of the country.

Unlike Auckland, they will not get a separate Government contribution.

The legislation will also set up new transport planning and funding bodies under the Auckland Regional Council from July.

The Government has proposed an Auckland Regional Transport Authority to plan, finance and fix public transport and play a role in local roads.

Another body, Auckland Regional Holdings, will be set up to own the $1 billion of assets held by Infrastructure Auckland and other infrastructure the ARC may acquire.

Auckland's local authorities have endorsed the package but there are concerns among the councils about giving greater powers to the regional council.

The Government will announce details of the legislation at 1pm today.