Twyford PhilLAND TRANSPORT MANAGEMENT (REGIONAL FUEL TAX) AMENDMENT BILLSecond ReadingHon PHIL TWYFORD (Minister of Transport): I move That the Land Transport Management (Regional Fuel Tax) Amendment Bill be now read a second time.For too long Aucklanders have been losing hundreds of hours of time every year sitting in traffic—time that they will never ever get back. The productivity losses caused by congestion are $1.3 billion every year and that's why the Government recently announced the biggest civil infrastructure programme in New Zealand's history to get Auckland moving and it is fully funded. This is a game-changer for Aucklanders and the first step in ensuring a congestion-free alternative and a transport system that allows the roads to move more freely. This bill—this regional fuel tax—enables those projects to become a reality and provides a sustainable funding mechanism to fund those projects over the next 10 years. The Finance and Expenditure Committee received over 500 submissions from people organisations and individuals—and interestingly not just from Auckland but from across the country—and I want to thank all of those who made submissions especially those who appeared in person before the committee in Wellington and in Auckland. There were many private individuals who took the time to express their views and make valuable comments.Aucklanders understand that they must pay a fair share to address Auckland's transport problems. This bill allows them to do that. The Automobile Association (AA) pointed out in its submission to the committee that when it surveyed its Auckland members they were within reason willing to pay more to improve the transport situation in Auckland. The AA points out that a regional fuel tax has been one of the more popular funding options to help address Auckland's most critical transport challenges. This Government is committed to making the hard decisions and addressing the most difficult problems. Drift and neglect are not options for us. We said during the election that we would implement a regional fuel tax in Auckland and we are keeping our word. Our transport policy commits us to addressing the infrastructure deficit that we inherited and we're committed to striking a balance between affordability and taking urgent action on the deficit we inherited.ATAP—the Auckland Transport Alignment Project—predicts that public transport ridership will go from 93 million annual boardings to around 170 million under this 10-year plan. ATAP will build 125 kilometres of new cycleways. The plan forecasts a 60 percent drop in deaths and serious injuries between 2017 and 2027 and it is fully funded. For the first time ever Auckland has a fully funded transport investment plan co-funded and co-governed by central government and local government. Without the regional fuel tax Auckland would have a $4.3 billion transport funding hole and would be virtually unable to build any new projects to address rapidly worsening congestion. The regional fuel tax enables 200 kilometres of bus priority improvements across Auckland providing bus travel time savings of up to 30 percent on completed routes a new bus station and route at Sylvia Park a bus interchange in Lower Albert Street for the North Shore Busway and a similar interchange in Quay Street improved access to the airport for the 40 million annual passengers by 2044 and the 27000 extra jobs that are predicted in the airport precinct. The Eastern Busway—that I would have thought Jami-Lee Ross would be supporting—will increase public transport patronage in electorates like Botany from 5.8 percent to 13 percent more than doubling public transport patronage in that member's electorate. The regional fuel tax enables park-and-rides in Hibiscus Coast Westgate Kūmeu Drury and Paerata; 20 additional trains and the construction of associated facilities to house and maintain them; redevelopment of the downtown ferry terminal to deal with an expected 40 percent growth in ferry journeys over the next 10 years and a road safety programme for a large number of high-risk intersections. In the last five years Aucklanders have experienced a 65 percent increase in road deaths and serious injuries. In 2017 this equated to 64 deaths and 749 serious injuries—a level of road trauma that has not been seen in the city since 1996. The combined impact of the accelerated programmes allowed by this regional fuel tax is estimated to reduce deaths and serious injuries by 60 percent over the next 10 years. This regional fuel tax also enables Penlink. It enables Mill Road and many more projects across Auckland—projects that were talked about but nothing was done about over the last nine years. The bill enables a regional or unitary council to seek funding for specific transport-related projects. We've indicated—the Government's indicated—that in this term of Government only Auckland will be able to put in place a regional fuel tax under this bill. The regional fuel tax must be applied for and that application must be for identified and specific capital projects. It is not there to pay for business-as-usual operating expenditure. The bill allows for a regional fuel tax of up to 10c per litre and our modelling shows that this could result in between $150 million and $170 million a year in the case of Auckland. The bill enables a tax that will apply to both petrol and diesel but for no more than 10 years. This period of time gives Auckland funding certainty to deliver on major transport projects but it requires it to come back to its citizens and to Ministers if it wants to go beyond the 10 years.A regional fuel tax is not as some have suggested a blank cheque to Auckland Council. Both Ministers and the residents of the region expect to see delivery of the things that the regional fuel tax was raised for. I want to acknowledge that the regional fuel tax will add costs to Auckland motorists and to Auckland families. The combined effect of the Auckland regional fuel tax and the proposed increases to fuel excise duty will cost an average family $5 per week. This Government has put $75 per week into the pockets of 384000 low and middle income families. That puts it into perspective.Congestion costs are regressive. The best way to deal with the regressive nature of the cost of congestion is to invest in a modern rapid transit and public transport system for our biggest city that will give people genuine transport choices. The worst thing for low-income people is having no transport choices and being forced into the most expensive option which is utter dependence on every working adult having to own and run a car in order to live and survive.The select committee's report back recommended a number of sensible changes to the bill that was introduced into this House. They include enabling a regional council to exclude a part of its region from the regional fuel tax requiring Ministers to give consideration to regulations for rebates for fuel used off road and requiring the Transport Agency to report on revenue costs fuel prices and volumes and compliance. These recommended changes are broadly sensible and are reflected in the bill as reported back to the House from the select committee. I am actively considering now how to best ensure that the eligibility for a rebate for fuel used off road is both principled and practical.This regional fuel tax enabled by this bill allows us to move ahead with a $28 billion fully funded transport investment plan for our country's biggest city. That plan is designed to get Auckland moving. It is designed to give people a genuine congestion-free alternative that they currently do not have. It is designed to give people—and especially in peak hour—an alternative to spending hours stuck in gridlocked motorway traffic.Alongside KiwiBuild—our plan to build affordable housing—our urban development authority to lead large-scale projects our plans to fix infrastructure financing and reform the planning system these reforms will allow our city to make room for growth to provide a congestion-free alternative and unleash the growth and prosperity denied Auckland under nine years of drift and neglect.