KEY POINTS:
One of the big talking points in the budget - especially for Auckland and Wellington residents - was a new regional petrol tax.
Dr Cullen said a 10c a litre charge would allow both cities to put new transport projects in place more quickly.
These included rail electrification and the Western Ring Route in Auckland, and Transmission Gully in Wellington.
Here is the latest selection of Your Views:
Mark in Auckland City
No way Jose! Anything to do with rail should be a user pays system, there are other ways of paying for trains and quite frankly petrol tax is not it. Why should motorists pay for a train system that only services half of Auckland?? What about the North Shore and above? They shouldn't have to pay for trains that they will never use! Its ridiculous. If anything they should just re-introduce tolls on the Bombay hills, the harbour bridge in the middle and the Orewa interchange. That way people passing through Auckland would need to pay for the roading system that they are using and nothing else. This is a much fairer way of taxing the roading system of Auckland. It has proven to work in many other developed countries such as Italy, France, Austria and our local cousins Australia. The new Esmonde Road interchange is a big joke too, as this is an off ramp for people only going into and out of Takapuna, Akoranga and Devonport! Yet it cost everyone in Auckland a combined total of 44 Millen dollars! What a joke. We are all paying out the aUSUS$$ for things that we will never use!
Derek
Put the people in prison to work on digging an underground railway system. Humans used to do the digging in the old days. This is a win win situation. The community gets a railway system and the prisoners get the chance to contribute positively back to the community for their crime instead of wallowing in a prison. It doesn't matter if it takes a while, Auckland will be here long after we've gone. This can be our gift to future generations.
Malcolminusa
Sir Dove-Myer Robinson. Need I say more?
Will (Sydney)
Wow, I cannot believe so many people are negative about the 10c increase in petrol, but then again you probably haven't been outside of NZ so I can understand where your coming from...u probably don't know better ! lol;) I live in Sydney because I was sick and tired of driving to work from Manurewa to Mt Wellington going 20kph. A 10 minute drive that took 45 minutes. I've been in Sydney for x3 years now & I still don't own a car! Seriously, When Auckland has a fast transport system it will take more cars off the road making those who have to drive, eg North Shore more likely to get where they are going faster. Work out the maths & get up to date with the times...get up to date with the techno! lol:)
Jeremy (Auckland)
At least they are getting on with it at last! Perhaps they will even plan for train lines to North Shore and the airport. I hope the whole system is capable of upgrade to wider gauge railway lines. Current 3 foot 6 gauge is impossibly narrow and neither safe nor fast. Why not 5 foot like in civilised countries?
Trainspotter
I'm pleased to see a council that gives a damn. But why don't we put lines along the motorways? Why don't we build a secondary line so you don't have to wait for trains to pass just before Newmarket? Are we putting another a line under the harbour. If we put a tunnel surely we could put a train line. We have no ring routes. but hey vote C&R and we wont have to worry as they wont bother doing anything.
John Poole
Many studies have been done, concluding that public transport is more expensive than private transport. If there are people that want a public system then they should fund it, by means of buying shares, if it is a sound proposition then it will succeed, but to ask the motoring section of the community to fund it, is wrong, people will still have cars, and the running cost of cars, and will be subsidising a rail and bus service as well, the very topography of the NZ scene is not conducive of mass movement of workers from habitat to work, we are too spread out, work places are not very big,compared to international standards, the car is here to stay and we should accommodate it.
Lisa Foster
If we ever needed more of a reason to believe Labour should NOT be in power, I'd say here it is - handed to us on a silver platter! I'm absolutely disgusted by this "fuel tax". Nice way to slap your voters in the face! All of us North Shore & Rodney Residents will have no choice but to pay the price for services that we will probably never use and what's more they don't even currently exist! I'm all for user pays, heck the worlds gota keep going round - but I'm not a user so why the hell should I be paying? And where is all the money going that we currently pay in taxes for roads etc? Certainly not towards any of the roads I drive around on! Surplus anyone? The sole focus of these extra funds is to electrify trains. Trains dont cover any of North Shore/Rodney & also don't go anywhere near East Auckland. & What about the cost of running these trains? Oh.. that's ok they'll just throw an extra tax on our power accounts next! Labour needs to wise up, most of Auckland and areas north and south which I would have not even considered to have been a part of Auckland are going to be ripped off to fund small areas of a large city. It's disgusting - it's daylight robbery!
Campbell (Brisbane)
Well well, I am not surprised at the latest Budget from Cullen, with a few crumbs (If your lucky) for the workers and taxpayers of NZ. Part of reason we left NZ only 9 months ago, was because of the current Labour Government. They should make a new Dr Seuss Movie - "Uncle Scrooge Cullen and his merry men & women", trouble is no one would want to fund it or go along to watch. NZ has some of highest Tax and Interest Rates in the western world - great if you've got money in the bank. But otherwise well behind Australia and others. As for tax to improve transport another joke..I expect to see allot more Kiwis jump the ditch shortly.
Mark Joyce
Absolutely. Public Transport improvement is the only way forward for Auckland - you can't keep building new motorways in a city forever. Buses and importantly electric rail is what every other first world country has in place, so it is not before time that this is happening. All you need to make it successful once it is electrified is good bus connections to the train stations and good park and ride facilities to make people leave their cars and take the train. Go Auckland!
OldSalt (Gulf Harbour)
Why when Auckland is desperately short of electric power, where the Government and its greenie friends have seen fit to prohibit river based hydro development, to the point that over winter Akld hot water cylinders are compulsory shut down for 20 hours at a time, would any one in their right mind install a electric rail system that will be the final straw to create brownouts over winter, or does the ARC contemplate a new Auckland Nuclear device to boost power availability, and all for what, about 450 western rail passengers on a good day, idiocy. I encourage all North Shore Residents to band together to fight universal rail tax , already we pay road tax which this Government has misappropriated, now they want to Pay double road tax for rail, which is as much use to Nth Shore as a fly in the pavlova. Why do Directors of private companies have to be accountable for every penny and Directors or Managers of quasi public entities not so, bring back Preeble, "all is forgiven", make our rail cost effective by privatised contract or gone.
Vail Hubner
Auckland ratepayers have been shovelling their money into the local roading system for over 140 years now. During the same period they have hardly put any money into the local railways or harbour ferries. The end result of this bias is endless roads and a decrepit public transport system. Its now payback time. I acknowledge the payment system appears back to front. House rates being paid into roads but people don't drive their houses down the road and motorists paying into railways but they don't drive their cars down the railway. But at least it is fixing up the mess.
Isaac (Onehunga)
I am happy to pay the extra as trains are a much easier way to get around Auckland than crawling in traffic. The Auckland rail system has long been neglected and it really does need to be electrified and modernised. There is a huge demand for trains now, far exceeding what can be supplied at present. Electrification and new electric trains will mean quicker, quieter, more frequent and reliable services. The existing diesel trains will then be able to be used to run new services to new destinations such as Kumeu, Helensville, Onehunga, Manukau and Hamilton. The rail network really needs to be expanded though with an underground line under the CBD and a tunnel across to the North Shore, along with a line out to the Airport and to Botany Downs.
Melbourne
Australians are shocked when told that Auckland is using Perth's decommissioned trains and that we're still on a diesel train network.The Auckland transport system is shameful in this day and age, and it is a necessity that the lines get electrification ASAP. It's perhaps unfair that Aucklanders may now have to foot the bill in way of tolls and taxes for decades of neglect by local and national governments. Despite this, the people urgently need this upgrade to give their city a future. Plans for a third harbour crossing need to be addressed ASAP and these also need to include a light rail system to connect the North Shore to the city.Many Aucklanders living overseas see the inadequate transport system as a turn-off when thinking about coming back.
Racey
I live in one of the new subdivision in Manukau City (Howick), there has been no thought in to public transport to these new areas, whether it be light rail to the existing railway in Manukau, Papatoetoe or Syvia park. The ferry terminal at Half Moon bay is a joke. Now the government wants me to pay another 10 cents on petrol to up date a railway system that I can't use or if I did I have to get in my car to get a railway station, it defeats the preps really. I have been to a lot of cities in Australia. Perth being one, which they say is like Auckland, erth is a growing city like Auckland with new housing subdivisions but the big difference between the to is they put public transport in, they have place new train tracks to all new housing subdivisions, bus meet the trains on time. Perth has the same population as Auckland and no 10 cent petrol tax, how do they pay for their roads and public transport?
J. Choi (North Shore resident)
Unbelievable! The government had just penalised the residence of North Shore yet again! We are the people who are using a majority share of the petrol out of the greater Auckland area - just because we have no choice but to get over the harbour by some mean of petrol and diesel-burning carriers (cars, buses and ferries) and yet we got the least share of the money which we suppose to deserve. Majority of the money will go toward the rail! And does North Shore have a rail? I'm sure all the rail system need is a better management. I had been using the rail service in NZ many times in the past and I'm very amused that we still have ticket collectors on the train - even developing world don't have that system! And there are multiple times where the ticket person just sat at the back to talk to each other (2 ticket collectors Vs 10+ travellers). I personally think we do not need another petrol tax (on top of local council rate and ARC which suppose to have input into our transport system). All we need is some sensible people to manage our money better and spend it on where it is necessary - not on those useless consultation.
Ian (Auckland)
Yes so long as the burden is national. For years Auckland and Wellington have paid the most fuel taxes and other taxes into the consolidated fund. All of NZ has benefited with better roads etc. It seems very unreasonable that Auckland should pay now when they have subsidised the rest of NZ for years. So the answer is yes but reduce the amount per liter and make it a NZ wide tax.Also let's be realistic - the trains service about 20 per cent of Auckland. Suburb after suburb will never get on a train because there is no train. Many suburbs have substandard bus and ferry services also so have no option but to use cars - so in a way because of where they live and the way the transport infrastructure has been developed they pay twice because they must use their cars when others will eventually be able to take convenient trains - 80 per cent paying for 20 per cent to have a benefit.
Mama Mia (Auckland)
Ok, so all Aucklanders will be ripped off another 10c for each litre of petrol. If so I suggest there further be established toll booths at all roads leading into Auckland, from all corners of New Zealand, north, south, east and west, in order to charge all out-of-towners a levy to drive on our Auckland roads. Call it a "Cow-cockie-levy", because the word tax sounds a bit uncivilised. Since so many strangers from out-of-Auckland visit our wonderful City of Sails each and every day (they just can't keep away from our great Auckland, can they) it is fair that also they pay a decent price for using our roads, streets and lanes, for which we have paid so dearly for. And, in order to stop traffic congestions at these toll booths all Aucklanders are to display an "Auckland Citizen Sticker" on their windscreens enabling them to run right through without stopping.
Trains for North Auckland
Tax increases for electrification of the rail system is all fine and well, but I have one simple question. When are we going to see a rail system for the North Shore/Rodney Districts? We pay just as much tax as those south of the bridge, yet we will probably never see any benefit from it unless we happen to take up jobs that require train travel south of the bridge, and even then people will probably still use cars.
Dill
Instead of train or bus, has anyone consider using small 16-seaters vans as public transport? They can be cheaper to operate and more flexible in routes. I think the Government should encourage private sectors to invest in their mini bus fleet.
Sam Harrowfield
Fuel tax? Bring it on. If this is what it takes to get us an upgraded and environmentally friendly rail network for the long term, I think this generation can stomach it. Someone has to pay the price some time, why not us?
Simon (Auckland)
Whist I agree with the principle of user pays and the need for a sustainable public transport system, I am also a firm believer in transparency and I believe we as tax (and rate payers) have been woefully abused in regards to what our current taxes (fuel and road) are being used for. We all agree that a local (Auckland) tax should be used for Auckland's roading, but before we increase this by 10cents/l please show us where the existing Auckland petrol and road tax take is being used. I would hazard a guess that very little is being diverted specifically to the roading in the Auckland region (most will be going to either roading projects outside or into the Governments consolidated slush fund). As the largest city in NZ with obviously the largest number of vehicles currently paying fuel tax I would suggest that there is sufficient in the Auckland kitty (if it was dedicated for that end use)already to service our roading needs without the additional increase. If and only if the dedicated use of our existing roading and petrol tax take is insufficient for our roading needs should we then accept any additional increase.
Nick R
To all those that are complaining that they will never use the trains because the system in crowded, run down or does not service their area, this is precisely why we need to spend so real money on the upgrading and extending the network! With modern fast electric trains, clean and accessible stations, integrated ticketing and integrated timetabling between buses, trains and ferries, public transport will be at least as fast, cheap and comfortable as driving, and in many cases significantly faster. Then even die hard car drivers would be foolish not to consider the alternative.Even now our currently pathetic train system is bursting at the seams, every new dollar spent on upgrades will soak up commuters that would otherwise be forced onto the roads. The city is only going to continue to grow. It is a lot cheaper and easier to meet the resulting growth in travel demand with new rail than it is to force everyone to drive everywhere and to try and keep widening roads and constructing multi-billion dollar new motorways. This is just the tip of the iceberg, with a constant source of funding each year the public transport system will go from strength to strength.
Jon Reeves
I am extremely pleased with forward thinking provided for Aucklands public transport in this budget. 10 cents a litre is nothing compared to the future reductions in traffic congestion which will result from fast, quiet electric trains, better bus and ferry services and integrated ticketing. I catch the train three days a week to the CDB, and two days a week I drive to visit clients around the city. I will gain a faster trip into the city and less congestion when I do drive - a double win! For once I take my hat off to Mr. Cullen for doing something every single Aucklander will benefit from.
Paul H
Ok, so we're paying more for petrol (not gas) to fund roads and public transport. Neat, hopefully this petrol tax will go towards what it's supposed to. But why do the price increases not kick in until July 2008? If you're going to do it then do it now, why wait another year to get funding?
Colin (Melbourne)
This is the latest instalment in the continuing saga of inept budgets from a government that has totally squandered the opportunities that the global economic boom times of the last 5-6 years have brought. Where is the vision, the drive to change NZ for the better? While I applaud the move to make super savings compulsory, they should have linked this to personal tax cuts. Business NZ you should have known that compulsion was coming as soon as KiwiSaver was unveiled last year. How much money was spent to research the idea for a 3 cent corporate tax cut - mindblowing idea that one!! The rest of the business package is just drivel and a complete waste of time. As for the new petrol tax -well if you don't want toll roads (like the ones in Sydney & Melbourne) what do you expect! As many Your Views have noted it is just another way for Cullen to get his hands on the poor Kiwis purse strings. Overall this budget was pathetic. I would love to come back home but until this govt. is given the boot it looks like I will have to remain here in the so-called lucky country. (And yes I did vote in '05!).
Frankie
I cannot believe the Government are threatening another 10c tax on petrol for Aucklanders! From memory they have already slapped on two separate petrol taxes that we have all had to swallow and this one is just ridiculous!
David
Will the proposed tax in Auckland raise the price of petrol per litre to the levels those in rural areas in the East Coast and the MacKenzie Country have to pay now? Are Aucklanders being a bit precious?
Morgan (Titirangi)
I am very disgusted with the new petrol tax, as isn't there already tax on our petrol? Why isn't that used solely for the roads and transport? I also would like to bring up that if I were to catch a bus from my home in Titirangi to my place of work at the airport I would need to catch three buses taking anywhere from 1 1/2 to 3 hours – this would be the average journey… catch the first bus to New Lynn, then change buses or catch the train to Onehunga then catch another bus to the airport all which probably won't be on time then causes me to miss the connecting transport. So why would I give up the 35minute trip in my car? Though in saying that if the government were actually going make the public transport to the airport direct I'm sure a lot more people would use the service, I know I would!Back to the petrol tax, what is going to happen with this money collected will it just add to the already large Government Surplus? Why isn't this money being used first before adding to the already extremely expensive Auckland life compared to other regions?
Bill (Auckland)
Who remembers the Simpsons episode when Springfield got a monorail system?
Angry (Waitakere)
Once again Aucklanders get shafted in the budget. One of the main reasons we have a pathetic public transport system is under investment by successive governments. Aucklanders pay the largest proportion of both Income Tax and Vehicle Registrations. If all the money from current petrol taxes raised in the Auckland region was put back into the region there would be no need for this extra tax. The government has also failed to see the inflation this tax will cause as Bus, taxi, and transport companies will be paying more for fuel it is 100 per cent guaranteed they will pass the costs on which will push up the price of food, clothing, and all other consumer goods.
Jared (Kiwi in London)
Many of the comments would be funny if these same people weren't allowed to vote! For starters, the Auckland region pays far more in taxes than it gets back-this is always the way when 1 or 2 cities dominate a region/country-smaller areas get subsidised by the city. 2ndly, the idea that this is a tax grab to plump up people's salaries, add to 'slush funds', etc. is farcical- it's such a dumb throw away comment to make. Auckland has been the laughing stock around the world as a bizarre example of a modern city with virtually no public transport infrastructure. To say you wont pay until the service is provided is a ridiculous argument. You must provide the bus lanes, rolling stock etc., before people will use a less than adequate service-so you need to get the money now to build it. The idea that any of this money should go on road improvements/building is also farcical. By spending money on rail & bus services, which are the most efficient way of moving large numbers of people, you create a 'virtual'new roading system anyway, by reducing the congestion on the existing roading infrastructure. Come on kiwis-join the 21st century!
Gunner (Auckland)
A representative from the AA last night suggested the petrol tax was fair as it means people in Invercargill will not pay for roads in Auckland. This is rubbish. Why don't the regions pay the true cost for their petrol including haulage and storage? We might see then that 'Jaffas' should be paying 10 cents less and Invercargill 20 cents more. Also, I expect the GST on the 10 cents will benefit the whole country. And didn't I pay for additional roading with my 33 percent rates increase. I won't hold my breath for a rebate - or a tax cut.
Sweetie (North Shore)
The real irony is that even with an additional 10 cents tax per litre it is still cheaper for my partner to drive into the city to work daily than it is to park the car in the city for the day. The petrol for the small car still costs less than a bus ticket for the same journey.
Westie
I have a suggestion for vehicle users of Auckland.We vote for a massive review of vehicle registrations.Currently we pay a considerable amount in the form of ACC levies in our vehicle registrations. How about Auckland be automatically excluded from paying any vehicle registration considering a majority of it is comprised of various forms of taxes and levies? The other option is Waitakere City call itself a separate city from Auckland and we Westies can be excluded in paying petrol taxes. Still lets see what bribery Labour has in store for us next election year. And lets see what backdated pay increases these politicians receive before Election 2008.
Holly (London)
Finally! I have been dreading coming back to Auckland and being 'chained' to my car again.Public transport here in London is not 100% reliable and is woefully overcrowded, but still, it is a fantastic resource. A year I have been here and I have never once had the need for a car - it is fantastic. No sitting in traffic jams, no danger of drunk driving on a Friday night, greener and better for the environment too... come on Auckland, drag yourself into the modern world. I will happily pay this tax on my return if it means that electfified rail and/or a metro system become reality. New Zealand is not a rich one but it is a great one and we should all be taking responsibility to invest in its future.
Peter (St Heliers)
Cullen and the rest of the greedy little hoodwinkers in government figured out that somehow sheep DNA entered the human inhabitants of New Zealand about 10 years ago. The thieving little gnome has struck again. Petrol is already taxed heavily, but somehow we get hoodwinked into accepting that it should go into other non-transport related government expenditure. What do we do about this extra local fuel tax he has legislated for in the latest budget? Nothing. Like all good sheep we will just be compliant and keep our mouths shut while we all get shorn. What can we do about it? Plenty. At 2.30pm on a Tuesday afternoon sometime very soon, a small group of 5 vehicles could easily form up across the Southern Motorway and not allow any traffic past them on the journey from the Harbour Bridge to Manukau at a speed of say 20kph. At the same time, a similar protest could start at say Manukau, and make its way at 20kph on the Northern Motorway to the Harbour Bridge. You know what, without breaking any laws it could bring a great deal of attention to what we are allowing to have done to us as citizens of this great city. Aucklanders - you are not like the rest of the sheep people in this country. Send a strong message to Wellington that we have not been affected by this terrible virus!
Don
So we are not a user pays society now? Or just when suits local and central government. Why should motorists be paying for public transport when they are'nt using it. Where are we going to get the extra electricity to run the Green electric trains when we don't have enough electricity for the users who pay for it as it is and have to have cold showers every winter? Maybe they'll just have to build another coal burner.
Angry Taxpayer!
This is absolutely crazy! What about the extra 12.5% GST on the surcharge? They are really raking this in! Where is the GST going to go? On the roads? I think not! I currently rent a room about 35km out of central Auckland (were I work) and I spend around 2 hours a day driving so I can struggle to get by every month. I already pay 18% of my income (before tax) on child support and then I'm so lucky to pay tax on my child support payments!! Yes I do get around 12k 'Living Allowance' but excuse me. where in Auckland can you live for 12k? The ironic thing is that this allowance goes up if you have a partner you live with, even though in this situation you expenses usually go down.
I would indeed like to buy my own home but this is very fast becoming a dream. This is the final nail in the coffin for this crazy government. Goodbye Labour!
Patrick(Southland)
I visited Brisbane for the first time last year, and was amazed at its great rail transportation system. By comparison, Auckland's transport system is pathetic and woefully inadequate. I think Aucklanders should pay to update it. It amazes me to hear some stating that Auckland is essential to NZ. As a lifelong resident of Otago/Southland, I know that if these provinces combined to form a separate country, those of us living here would become very wealthy as we punch far above our weight. We have a substantial export base through our sheep, dairy, deer, forestry,and vineyards,the best tourism and outdoor recreation areas in this country, top educational facilities and a strong arts sector. If Auckland fell into the sea tomorrow it would not affect us one bit.
Martin
So if a $0.10 increase + Gst I presume, will raise about 120million p/a,and we are already paying close to $0.60 a Liter in tax, that means we are putting close to $ 800 million ( give or take a $) in the kitty every year towards transport in Auckland. Rather a lot of money for what we are getting! And rather than worrying about electrifying the rail network, would the money not be better spend on building more railway tracks like on the north shore for example? And for those tree huggers that are worried about the environment and Diesel engines, run the trains on veggie oil! It's clean and green, I run my diesel car on veggie oil, if my car runs on it , I am sure a train will run on it too.
Lou
Backward - oh yes. A classic example is the North Shore bus system that is being built, they have had to build new roading, buy new buses which they say will be environmentally friendly, but the whole system is an unsightly, old fashioned eye saw that is full of bottlenecks like the harbour bridge where there are no extra lanes plus the capacity of the system will be restricted to the volume that the car parks can handle at the pick up points & when those are full, will they extend them out so you have to walk half a km in the rain? Why could they not have put in a monorail going both ways, construction would have been far cheaper and quicker and they probably could have been able to get such a system over the bridge. The demographic layout of Auckland does not allow for the continual adding and widening of roads which will continue clogging, are council and government scared that by going with a modern system like monorail or light rail that it is to risky? So many countries do it but we just keep sliding backwards.
Peter
Extra Petrol Tax: Won't the 10 cent per litre tax really be 10+GST= 11.25 cents? That's $5.62 extra after tax to fill a 50 ltr tank each week? So an average Auckland person on $40k needs to earn $7.50 per week to pay for the increase. How are they meant to save 4% of their gross wage? Won't the extra power needed to run the trains come from oil, gas or coal generation? Business Tax Cut: What tax cut for the average Kiwi business owner? Most small business owners with companies distribute the net operating profits to themselves as either salaries or shareholder dividends and pay tax on that at personal tax rates , so the reduction in the company tax rate won't really benefit them. But their wage bill will increase 4% by 2012 so they will need to hold back on wage increases. Sole traders and Partnerships pay personal tax too. Major corporates with overseas owners will just see the increased after tax earnings go offshore to those owners.
Carl de malmanche
The main problem driving a hectic economy is overspending by local and national government.Putting more taxes and spending more is not going to help. Yes electric trains are good. But what about those electricity/lake-level shortages? Yes public transport is good in places that have population density to make it happen (why do they need subsidising?) but will they be often enough, cheap enough, and go enough places to make it worthwhile. Public transport is by its nature very limited in its coverage. Finally. We are all ready paying road and development taxes but the governments overspending is already blowing that. Perhaps they need the extra 10c so they can give it to foreign banks for interest payments, after all they can't have New Zealanders getting ahead.
Lance
How quickly we forget, traffic congestion in Auckland would a different issue had the rapid rail system that mayor Robbie had proposed 40 years ago been implemented, at the time there were many people, the ARC being one group, that opposed it, perhaps now they can back their decision with their own money. By now we would have a rail system servicing all of Auckland had it gone ahead. I think that we should put the dissenters names up in lights at every gas station and on every kilometer of clogged motorway, name and shame those people that condemned us to this misery and now additional cost. Also why should we pay more when so much of Auckland's Petrol tax in the past has gone to maintaining roads in other relative
