KEY POINTS:
Finance Minister Michael Cullen has expressed a long-term vision for rail in Auckland of a central city loop, connection to the airport and rail tunnels under the harbour to create a "true electrified rail network".
But Dr Cullen, who has just bought the rail and ferry assets of Toll for $690 million, gave little away in the Budget about the pressing issue of providing electric trains for Auckland.
Auckland transport chiefs are waiting for the Government go-ahead to impose a special regional fuel tax to borrow money for a fleet of electric trains, estimated to cost $500 million.
Soaring petrol prices have seen earlier plans for a fuel tax of 5c a litre from January replaced by a proposed gentler regime, starting at 1c a litre in July next year. Motorists will soon be paying $2 a litre for 91-octane petrol and economists say it could hit $2.50.
"If a slowly phased in regional petrol tax is available, then the current plans for electrification can proceed," Dr Cullen said in his Budget speech.
Auckland Regional Council chairman Mike Lee was pleased to hear Dr Cullen's vision, saying he had come a long way in a short time on rail.
Campaign for Better Transport convener Cameron Pitches said Dr Cullen's rail message was very encouraging but he wanted to hear how electrification would be paid for.
The Budget included $30 million for transport in Northland and the East Coast area of Tairawhiti, $33.5 million for a Canterbury regional plan and $93 million in capital and operating expenditure for track owner OnTrack.
