May 05, 2018
Fuel tax fact check
The regional fuel tax would not be needed if Phil Goff simply met his election promise of finding efficiency savings at Auckland Council.
Auckland Council is currently seeking public consultation on their plans to introduce a $150 million regional fuel tax. We are encouraging our members and supporters to have their say on Phil Goff’s latest attempt to open the wallets of Auckland ratepayers.
There has been lots of propaganda from the Council’s spin-doctors on the fuel tax. The record needs to be corrected.
“We need the regional fuel tax to pay for infrastructure!”
Wrong.
If Phil Goff simply met his election promise to find efficiency savings of 3-6 percent across Council expenditure, then the regional fuel tax wouldn’t be required. Auckland Council can pay for infrastructure AND avoid the regional fuel tax if it takes its commitments to cut waste seriously.
Based on $150 million of revenue from the regional fuel tax and total Council expenditure of $3.8 billion in the 16/17 financial year, if Auckland Council found just four percent efficiency savings in its budget, the fuel tax would not be needed.
Auckland Council needs to trim its expenditure - as promised - before it squeezes ratepayers for more revenue.
“The regional fuel tax is just replacing the Interim Transport Levy.”
Wrong.
The regional fuel tax is expected to raise more than twice as much revenue ($150 million per year) as the interim transport levy ($60 million per year). According to the AA, the average motorist should expect to pay about $125 more a year from the regional fuel tax. That means households with even just one average motorist will find themselves worse off after the fuel tax is introduced.
Larger families, especially ones that live in the outer suburbs, will find their effective financial burden climb significantly. While the interim transport levy was $114 a year, a family with two average motorists will find their fuel bill climb by approximately $250 a year.
"Only motorists will pay the tax."
Wrong.
Every business that relies on transportation in Auckland will find their costs increase as a result of the regional fuel tax. Naturally those costs will be passed on to consumers in the form of higher prices. That means all Aucklanders - including those who aren't motorists - will be hurt by the regional fuel tax.
Update: Council required to reconsult on fuel tax - have your say now
The legislation allowing the regional fuel tax before Parliament requires Auckland Council to reconsult on the fuel tax - in addition to the consultation last month on the Long Term Plan. Submissions on the fuel tax proposal close on Monday 14 May at 8pm.