Petrol price hike tipped to give Auckland roads $60m

By BRIAN RUDMAN and BERNARD ORSMAN

A third of the $180 million petrol tax to be announced by the Government today is expected to go to Auckland and the remainder will be spent around the country as needed.

The Herald understands initial plans to divide the proceeds of the new 5.8c-a-litre petrol tax on a per capita basis have been dropped in favour of a needs-based distribution, except in the case of Auckland.

The region will be guaranteed 35 per cent of the proceeds, about $60 million a year. The Government is also expected to match this figure dollar for dollar from its coffers to help kick-start a vast 10-year transport building programme.

Regions such as Gisborne are in greater need of new roading than parts of, for example, the South Island, and advocates of a needs-based allocation appear to have prevailed.

Prime Minister Helen Clark and four ministers will reveal the Government's long-awaited blueprint for Auckland transport at Eden Park today.

The Government is also likely to announce a standalone public transport company owned by the Auckland Regional Council.

An independent board of directors will govern the transport company, isolating it from political interference. A selection panel made up of representatives from local councils and the ARC will appoint the board.

The new petrol tax will be included in next year's Budget and come into effect in July. It follows a 4.7c-a-litre petrol tax increase in February last year to help relieve Auckland's congestion.

A survey released by the Automobile Association on Wednesday showed 78 per cent of Aucklanders said the Government should spend more on transport from the petrol tax it collects and puts in the consolidated fund, even if it meant less spending in other areas.

Government and Auckland local body officials have also been investigating higher rates to pay for transport, and tolls and congestion charging.

Meanwhile, the Government announced yesterday that it was giving the ARC an interest-free loan of $25 million for 18 months to do up nine existing trains and rebuild 10 secondhand trains.

The ARC has already received $36.7 million from Transfund towards the $61.2 million package.

Finance Minister Dr Michael Cullen said the loan would be repaid quarterly by June 30, 2005, unless it was extended.

ARC chairwoman Gwen Bull said the trains were desperately needed to cope with a 30 per cent jump in rail patronage over the past four months.

* The transport package is due to be announced at 10am.