AA says extra road cash will bypass Waikato

The Automobile Association says the Waikato won't get the money it needs for new roads from the $2 billion injection, financed by the petrol tax, over the next 10 years.

AA motoring policy manager Jayne Gale said yesterday that population-based funding failed to take account of a region's roading needs and some areas, such as the Waikato, would be underfunded.

The Waikato was getting 9.16 per cent of the $2 billion, or $187.3 million. She said large numbers of vehicles travelled through the region yet it did not have a large population.

"If you look at where the roads are needed - and we are very concerned about the death rate on the Waikato and Maramarua expressways - where's the population to support the funding required in that region?"

Ms Gale said Christchurch would get "excess" funding because its roads cost less to build on the flat terrain.

The Canterbury region is to get $252.2 million over 10 years.

But Transport Minister Pete Hodgson said last night the $2 billion was only a small part of the total being spent on roading in the next decade and most would be allocated on the basis of need.

"We are spending $18.9 billion over the next 10 years, $16.9 billion of which will be spent according to need and $2 billion according to population."

The Government came under fire yesterday after confirming a 5c a litre petrol tax rise excluding GST from April 1. Road-user charges on diesel vehicles of less than five tonnes will also rise an average 24 per cent.

Customs Minister Rick Barker was forced to backpedal after calling the rise a new tax. The change is an increase to the existing excise, which is rising from 36.2c to 41.2c a litre.

He later issued a statement saying the rise was due to an existing levy.

In question time at Parliament the Government shielded him from National's transport spokesman, Maurice Williamson, who unsuccessfully sought leave to put his question to Mr Barker.

Finance Minister Michael Cullen answered instead, saying even after the excise rose it would not cover the full cost of roading.

"The Government inherited years of under-investment in roads throughout the 1990s presided over by lazy and ineffective ministers of transport."

Meanwhile, the AA has pointed out that Monday's announcement of the petrol excise rise failed to mention GST, which will further increase the cost by 0.625c a litre.

New Zealand First transport spokesman Peter Brown said the petrol tax had increased four times since Labour came to power and all had been unnecessary.

Act transport spokeswoman Deborah Coddington attacked the rise as the latest in more than 30 new taxes, levies and excises since Labour came to power in 1999.