Auckland to get single public transport company

By BRIAN RUDMAN and AUDREY YOUNG

A standalone public transport company, owned by the Auckland Regional Council, will be unveiled next week in a plan to solve the city's traffic problems.

The Government is preparing to issue its blueprint next Friday to reduce congestion, which costs Auckland millions a year in delays, extra costs and lost business.

Among proposals considered by the Cabinet are:

* A national 5.8c a litre petrol tax to pay for extra roading projects. The funding is for all roading, but Auckland would have the greatest call on it.

* A special grant to Auckland for transport.

* A 10-year funding programme for the city's roading demands.

* An ARC-owned transport company to take over the functions of the ARC and the Auckland Regional Transport Network.

Details of the package have been speculated about for months.

But today the Herald can reveal that debate over who should control a citywide transport body will finally be settled by creating a standalone entity owned by the ARC.

At present, 18 bodies are involved with planning, financing and implementing transport in Auckland.

They include:

* ARC (devises strategy)

* Infrastructure Auckland (gives grants for projects)

* Transfund (funding assistance for passenger transport)

* Auckland Regional Transport Network (rail infrastructure).

The Herald revealed three weeks ago that the Government was considering a national petrol tax rise of up to 15c a litre.

But Prime Minister Helen Clark and senior Cabinet members quickly ruled out the 15c increase, leaving open the prospect of a smaller rise.

Petrol tax is now 18.5c a litre.

The Cabinet is set to approve an increase believed to be 5.8c next Monday.

Finance Minister Michael Cullen told Parliament yesterday that Auckland would receive only its share of the higher tax, but the Government would match it dollar for dollar.

Dr Cullen was responding to questions from New Zealand First leader Winston Peters, who asked why petrol tax should rise when Transfund, which pays for new roads, had finished its year with a $225 million surplus.

"Is this not plain daylight robbery so that the Government can finance some of its other whacko projects?" Mr Peters asked.

Dr Cullen: "I am sure some of this increased tax will be paid at night-time as well, but passing beyond that, it is equally clear that if there is any change in excise duty, only the proportion that is due to Auckland in terms of its population will go to Auckland.

"The rest will go to the rest of the country, and the Auckland share will be matched by the Government."

Dr Cullen said the annual sum of taxes, duties, licence fees and levies collected by the Government for road construction, maintenance and safety was $1481 million, GST exclusive.

Transfund chief executive Wayne Donnelly was criticised by suspended MP Maurice Williamson at a parliamentary select committee yesterday for the $225 million surplus.

Mr Donnelly said the surplus was actually allocated money that had not been spent due to a range of factors including higher revenue, the slowing down of projects because of delays in gaining consents, and delays in acquiring properties.

He agreed with National MP Gerry Brownlee that Auckland's traffic could be an $8 billion to $9 billion problem, but he did not believe there was the building capacity to address more than $400 million worth in a year.

Mr Brownlee suggested the roads could be built more quickly if overseas contractors were considered.