KEY POINTS:
The Mayor of North Shore City fears the proposed regional petrol tax could have "dire consequences" for people who have no choice but to travel by car.
George Wood said the plan penalised residents on the North Shore, who were not served by trains.
The scheme may add 10c a litre to the cost of fuel in Auckland in a bid to help fund roading projects and the electrification of Auckland's suburban rail.
"We don't have rail on the North Shore, so are we going to be paying through the nose for something which is not going to benefit us at all?"
Mr Wood wanted to know the areas where the tax would apply. Other Auckland mayors backed the idea, but feared a backlash if the levy was too high.
The Government was refusing to comment on the plan, expected to be outlined in next month's Budget. The 10c tax would push the cost of 91-octane fuel to $1.60 a litre.
A regional fuel tax to finance public transport in 1993 was so unpopular it lapsed within three years.
Asked about his position on the tax, National Party leader John Key said yesterday: "There's unquestionably a huge infrastructure deficit in Auckland and other parts of the country, and we want to see that resolved. Whether you need to fund that with additional taxes is something that Bill [English] and I will have to have a look at."
The Automobile Association said the tax was one option to address the "funding crisis", but 10c a litre would hurt motorists.
"We wouldn't want people buying petrol in bulk, that wouldn't be at all safe."
Auckland City Mayor Dick Hubbard said the tax was a "definite step in the right direction" but it would not be enough to solve Auckland's transport woes.
He wanted the Government to commit to spending money to address the problem.
"There is no doubt that extra direct Government funding is going to be required on top of a regional petrol tax."
Mr Hubbard said a tax of around 60c would be needed to raise enough money, but "if you go higher [than 10c] you run the risk of distortions coming in by rings of petrol stations being set up just beyond the city limits".
Manukau City Mayor Sir Barry Curtis was excited by the plan for a regional fuel tax, which he considered a "golden opportunity" to improve Auckland transport across the board.
"The worst thing that could happen is that the local authorities and people of the region not take advantage of this very important initiative."
Sir Barry said it would be "cowardly" to opt for a tax that was too low.
"Personally, I would be opting for a figure closer to 10c a litre rather than 5c a litre."
Auckland Regional Council chairman Mike Lee said he was for a tax but 10c a litre was "over the top".
"I'm uncomfortable with anything over 5c. That's what I feel the public would be comfortable with. The danger would be if bureaucrats in Wellington start throwing in a whole grab bag of projects and see if they can be funded by a fuel tax."
Waitakere City councillor Penny Hulse, speaking for mayor Bob Harvey, said: "The over-riding concern is that it will be a bit of a shock being that high [10c]. It is quite a hike."
She and Mr Harvey want the funds raised to be spent only on public transport and not on roading.
