Fuel tax a no go for Hamilton

Hamilton will not a receive a fuel tax for the next three years. Photo / File

Despite work still under way for a regional fuel tax for Hamilton, the current answer is a firm no from central government.

The regional fuel tax was added to Hamilton's 10 Year plan at the end of last year's meeting. If it was given the go-ahead it would have taken some of the burden off ratepayers in the second year of a 9.5 per cent rates rise.

The majority of councillors were in favour of implementing a fuel tax as it was a user pays system, meaning out of towners who use Hamilton's infrastructure would contribute to the city.

During the council meeting on March 15, mayor Andrew King provided a brief update to councillors that Government has said no again to Hamilton having a fuel tax.

Speaking to Hamilton News, Mr King said Minister of Transport Phil Twyford's mind is not changing for the foreseeable future.

"He has reiterated his view that a fuel tax at this stage will be for Auckland only. I think it is highly unlikely that this position will change within this term of government," Mr King said.

"Staff are continuing to work with the Ministry of Transport on a potential longer-term position, but I believe, for now, a fuel tax for Hamilton is off the table.

"Our 10-year plan sets out a strategy for sustainable financial management for the city, including changes to the way we structure our rates. In my view this is the most secure option for ensuring we provide and maintain services and facilities for our community."

The 10-year plan consultation period opens on March 29.