Editorial: Solving city traffic woes helps all NZ

Transport Minister Paul Swain has been quick to scotch the notion that a 15c a litre national petrol price rise will be part of the solution to Auckland's transport woes. Understandably, the idea is politically unpalatable. Equally clearly, however, the Government is short on options, and time, to remedy the paralysis afflicting the city. Procrastination over new roads and improved public transport is no longer tenable. Hopefully, that is why Mr Swain did not rule out a national petrol tax increase of lesser magnitude. That may be hard to sell to non-Aucklanders, but the time for courting popularity lies in the past.

The Government's room for manoeuvre is straitened by the role accorded an increased petrol tax by briefing papers prepared for Cabinet ministers and mayors. In a basket of measures to address a $4 billion-plus shortfall in the amount needed to pay for Auckland's transport requirements within a decade, it is the biggest single funding source by some distance. If political considerations were to rule it out, $1.25 billion would have to be found elsewhere. The choices, however, are limited. Equally, raising more money through some of the options outlined in the briefing paper would be less than fair.

That is not to say the cupboard is bare. Infrastructure Auckland, for example, is expected to contribute $1031 million*, of which $140 million is to finance loans for new roads until other revenue streams, such as tolls, become available. But earlier this year Infrastructure Auckland indicated it may be willing to inject a further $320 million for public transport. So serious is the transport problem that it should be encouraged to dip into its nest-egg as far as possible.

There is also no reason why Auckland should not benefit by more than $60 million a year from petrol taxes currently taken into the consolidated fund. It has never been equitable that such money should be devoted to non-road spending; if this had not occurred, Auckland's problems would be fewer. Now, it is also unnecessary, given that the Government is awash with unexpected cash. A June-year surplus of $5.6 billion, based on better-than-expected corporate and personal tax takes, leaves little excuse for spending petrol-tax income on anything other than roads.

The fiscal surplus was a reflection of the buoyancy of the domestic economy. The powerhouse of that economy is, of course, Auckland. It has supplied the activity and vigour to compensate for a struggling export sector. Its strength and vitality benefits all New Zealanders. Thus, as distasteful as it may be for many outside the region, a national petrol price hike is reasonable. Getting Auckland traffic flowing again will help the rest of the country as much as it helps Aucklanders.

An increased petrol tax has the added advantage of extracting money from those who actually use the roads. It does not penalise people who make little or no contribution to the problem. That is also the reason why increasing the take from some other of the briefing paper's basket of remedies would not be fair. Rates, for example, should not be increased beyond the levels already projected.

Noticeably, the briefing paper does not envisage raising money through a congestion charge. That may be sensible, given the inherent difficulties of such schemes. It is clear, however, that something must be done to reduce the peak-hour traffic flowing into the city, especially that related to education. A survey suggests this may comprise as much as 40 per cent of trips at that time of the day. An obvious target is the concentration of language schools in Queen St. There may be merit in offering incentives to the owners of such institutions to move outside the central city.

That could be part of a package of relatively soft options. But there is no escaping the fact that harder calls must be made. One of those has to be a national petrol tax increase. The Government must bite that bullet if it genuinely wants to get Auckland moving.

* CORRECTION: In the original version of this editorial, we stated incorrectly that Infrastructure Auckland would contribute just $140 million to Auckland's transport requirements.