KEY POINTS:
Auckland's billion-dollar rail electrification project is rolling after the Government said yesterday it had approved a regional fuel tax to pay for it.
"At last, this is a done deal which nobody can overturn, thanks to this Labour-led Government," Auckland Regional Council chairman Mike Lee told Transport Minister Annette King and Waitakere City leaders planning a rail-centred redevelopment of New Lynn for up to $300 million.
He was reacting to an announcement by Ms King of a fuel tax - which she calls a levy - starting at 2c a litre next July and rising to 9.5c by mid-2011.
Ms King said 8c would be for rail - just over 7c for electrification - which Mr Lee expressed confidence was within reach of Aucklanders after two previous failed attempts over the past 60 years.
He noted that both those bids were defeated by incoming National administrations but believed neither had gained as much steam as the latest plan.
His council meets on Monday to authorise the Auckland Regional Transport Authority to seek expressions of interest for electric trains, some of which he hopes will start running in time for the 2011 Rugby World Cup.
Ms King also confirmed an allocation of 1c a litre for a toll-free road link to Whangaparaoa Peninsula, and 0.5c for Auckland ferry terminals and smart-card transport ticketing.
But she has upset the Automobile Association by not giving the $1.89 billion Waterview motorway tunnels a share, and the Green Party says it is considering a legal challenge against the use of fuel tax for Whangaparaoa's Penlink roads.
The minister said the tunnels would be financed separately, and Penlink was a way of giving Rodney District residents some return on their fuel payments.
She agreed electrification was a done deal now the Cabinet had approved an order-in-council, which any subsequent administration would have to go out of its way to annul.
National leader John Key acknowledged a fuel tax as a "legitimate way" of raising money for electrification, but was concerned at the speed with which it would go up to 9.5c.
Yesterday's announcement was soured for thousands of Auckland rail users by another signals failure which stopped all trains in and out of Britomart in the morning peak.
It was the third major signals failure in a month, and provoked a demand from Mr Lee that Government rail agency Ontrack sack whoever was responsible.
- Brooke Donovan
