“This is just another sign of Labour’s inability to deliver,” Brown said in Opposition.
But now the Pakuranga MP has his feet under the desk in the Beehive, he could not say when the tax will be scrapped.
“The legislation to remove the Auckland regional fuel tax scheme will be introduced to Parliament in our first 100 days. The exact timing is yet to be determined,” Brown said.
The regional fuel tax is being treated differently from the “ute tax”, which the Government has promised to repeal in its 100-day plan.
One person who will be pleased with any delay to the end of the tax is Auckland Mayor Wayne Brown, who wants it to stay in place until “time of use” congestion charging is introduced.
A bill has been drafted to allow for congestion charging, but it is unlikely to be in place for several years.
Auckland motorists will continue to pay the regional fuel tax over the summer holidays.
The regional fuel tax was introduced in 2018 for 10 years to pay for transport projects. It raises about $150m a year for the Auckland Council and attracts a further $150m in central government subsidies.
Martin Glynn, the Automobile Association’s Auckland spokesman, said removing the tax will provide some much-needed relief at the pump for Auckland motorists when the price of nearly everything else is still rising.
“Motorists driving vehicles with an average size 50-litre tank will save almost $6 each time they fill up from empty when the tax is gone,” he said.
However, taking away the tax will leave a significant gap in Auckland’s transport budget and other sources will need to be found to replace the revenue, Glynn said.
“If other funding isn’t found, a number of projects will need to be cancelled or deferred,” he said.
Meanwhile, hundreds of staff and contractors working on Labour’s Three Waters reforms and $14.6 billion light rail project in Auckland are in limbo while the new Government goes through the hoops of binning the projects.
Simeon Brown, who is Minister of Local Government overseeing the repeal of Labour’s Three Waters reforms, has asked the Department of Internal Affairs (DIA) to help the process of ending Labour’s reforms and implement National’s “Local Water Done Well” policy allowing councils to develop their own plans.
A DIA spokesperson said it is “pausing work” which will require decisions from the new Government to continue.
Watercare chief people officer Sarah Phillips said the Auckland Council’s water company has 41 staff seconded to the reform’s National Transitional Unit.
“We are waiting for the DIA to receive formal instructions from the Government on the water reform, at which point we anticipate that those who have been seconded will return to their regular roles at Watercare,” Phillips said.
It’s a similar story at Auckland Light Rail where 23 staff and others seconded from the Auckland Council, Auckland Transport and Waka Kotahi NZ Transport Agency are going through a process with the Ministry of Transport(MOT).
“I expect both the Ministry of Transport and Auckland Light Rail Ltd will be working through the resource implications to ensure the wind down is completed as efficiently as possible,” Brown said.
An MOT spokesperson said the process for cancelling the project and the associated timeframes is still being determined.
“We expect that more information will be available shortly, following Cabinet decisions. As with any project of this nature, the change in direction will have implications for staff working on the project, which will need to be worked through by Auckland Light Rail Limited and the Ministry of Transport as decisions are made.”
Bernard Orsman is an Auckland-based reporter who has covered local government and transport since 1998. He joined the Herald in 1990 and worked in the parliamentary press gallery for six years.
