KEY POINTS:
Auckland motorists may be asked to start paying a new fuel tax in just over a year to help fund a $1 billion-plus electric rail system aimed at easing road congestion.
The Government's approval of a special tax of up to 10c a litre on petrol and diesel for new transport projects has triggered a start on the Auckland Regional Transport Authority's electrification scheme.
"Electrification programme begins today," was the first item of a bold action programme issued by the Auckland Regional Council subsidiary yesterday, just two hours after the Government approved the use of fuel taxes to cover projects not funded by traditional means.
About 80 per cent of the tax is likely to go towards public transport, including the development of a seamless multi-trip ticket and new ferry wharves, leaving the balance to be divided between completing the western ring route from Manukau to Albany and Rodney District's long-planned toll road between the Northern Motorway and Whangaparaoa Peninsula.
Transport Minister Annette King acknowledged the Government would have to pump more direct funds into the ring route, in the face of an $800 million shortfall flagged by Transit NZ, but said Aucklanders had indicated a fuel tax would be fairer than charging them tolls to use it.
Rodney's Penlink road has far greater community support for a toll and she said it was only fair to offer that district a share of a regional fuel tax as well, since it had no passenger rail services.
Despite the full-steam-ahead from the Beehive for electrification, it may still take until 2013 for the first of 40 new trains to hit 110km of tracks between Swanson in the northwest and Papakura.
The Government considered having electric trains available for the 2011 Rugby World Cup, but concluded that would be too risky, and it will rely instead on Auckland's proposed purchase of refurbished diesel trains to provide a "well-functioning transport system" for that event.
Ms King emphasised that any regional tax would be phased in rather than hitting motorists with "a big bang". She did not believe more than half of the maximum allowance of about 10c a litre would be needed before 2009.
Other regions would be also be entitled to apply for fuel taxes for their own transport projects.
The Government intends raising a 5c tax share to match the Auckland Regional Council's contribution, all of which Land Transport NZ will collect from the oil companies.
But the council indicated it would be ready to consult the public in its budgeting process early next year, and chairman Mike Lee said it was working on an assumption a tax could be levied on "July 1, 2008".
Mr Lee said yesterday was a great day for Auckland, heralding the region's "most significant transport development since the opening of the Harbour Bridge".
"This is a turning point in Auckland's development," he said.
"In 1976 the Muldoon Government vetoed the Auckland Regional Authority's plans to build a modern rail network - Aucklanders have been paying for those missed opportunities ever since - but this Government, 40 years on, has now said: 'Yes'."
Auckland City Mayor Dick Hubbard said yesterday was the day we were "readmitted to the civilised world" and were able "to hold our head up on the sustainability journey".
But he said planning should also start now on an underground rail loop through central Auckland, to turn Britomart into a through station and relieve pressure on its capacity as electric trains attracted more patronage.
Mr Lee acknowledged sensitivities about an extra tax on motorists, but said it was not sustainable to expect ratepayers to shoulder more and more of the burden.
"Cars are the problem not houses," he said.
But National Party leader John Key attacked what he called an unnecessary new tax at a time of large Government surpluses.
Asked if National would replace it with some other funding mechanism, Mr Key said: "If there was a different combination of taxes, such as personal tax cuts and a smaller surplus, it might be warranted."
He acknowledged that electrifying Auckland rail appeared to make sense.
Leaders say
Mike Lee, Auckland Regional Council chairman: "The most significant transport development since the opening of the Harbour Bridge. It's all on from here. We are rebuilding the public transport network."
Dick Hubbard, Auckland City Mayor: "Our dirty, tired, clapped-out old diesel trains will be a thing of the past. It's no more Thomas the Tank Engine for Auckland. Auckland joins Te Awamutu, Te Kuiti, Ohakune and Waiouru having what they've had for 20 years - an electric train connection."
George Wood, North Shore Mayor: "They are on the right track with the rail electrification plan, for sure, but I'm delighted that bus services and ferry facilities are in the mix."
Sir Barry Curtis, Manukau Mayor: "It is the circuit-breaker we have been looking for. Electrification is essential to upgrade our train services. It will also provide for the extension of the current lines and I expect the result will be a much more attractive transport option."
John Robertson: Papakura Mayor and Mayoral Forum chairman: "The region has been proposing electrification since 2003 and this decision will enable a completed rail network with electrification by 2013."
John Law, Rodney Mayor: "Marvellous. [A petrol tax contribution towards the Penlink road connecting Whangaparaoa to East Coast Rd and State Highway 1] will take it away from the local political arena ... and it means New Zealand will now have its first public-private partnership road."
Mark Ford, Auckland Regional Transport Authority chairman: "We're in a 'can do' mode. We're moving from years to planning, to implementation of more convenient services ... "
