Barker Rick: Customs and Excise (Motor Spirits) Amendment Bill — Third Reading 
Barker Rick: Customs and Excise (Motor Spirits) Amendment Bill — Third Reading 
[Volume:623;Page:18687] 
Hon RICK BARKER (Minister of Customs) 
: 
 I move  
That the Customs and Excise (Motor Spirits) Amendment Bill be now read a third time 
. Today the Labour-led Government is securing investment in the land transport infrastructure for New Zealanders in order to keep the economy moving. Over the last few days there have been headlines following the December household labour force survey showing how the unemployment rate is at a record low of 3.6 percent. That is the lowest in the OECD. Living standards have improved and business is expanding. To keep that momentum going which is what we all want it is imperative that extra money goes into building better transport systems over the next 10 years. High productivity and the avoidance of delays are the key to keeping New Zealand moving in the 21st century and money for that is needed now. Money will be collected in two ways. 
The bill contains two amendments to the Customs and Excise Act. It brings an amendment to increase the amount of duty paid on petrol by 5c per litre excluding GST. It also provides for excise and excise-equivalent duty allocated to the National Land Transport Fund to be indexed to inflation. That remains unchanged. Indexation will be annual and will come into effect on 1 April 2006. At expected average rates of inflation each annual increase will be approximately 0.5c per litre of petrol. That is necessary because the cost of land transport initiatives and the actual cost of improving our infrastructure keep going up. The Government will determine when it is appropriate to start the increase in duty taking into account the international price of oil. The Government is not raising the duty without careful consideration of the effect the extra cost will have on households and businesses but it has weighed up the advantages to New Zealand of doing the urgent work and it is confident that this is the best way to get our transport system working quickly. The duty will begin sooner rather than later at a time the Government decides and the passing of this bill allows for that duty to begin on 1 April should the Government decide that that date is suitable. I point out that any delay is not desirable and that contractors and workers are ready to start work and are standing by now. 
What will the money—that 5c per litre of petrol increase being introduced through this bill—be spent on? The total amount raised by this bill will go towards regional transport funding. This was first signalled last December as a means of addressing urgent infrastructure constraints as a key element of the Government’s growth and innovation framework. This unprecedented investment package in New Zealand’s transport infrastructure is central to maintaining a healthy economy. For the first time in years it provides the certainty that contractors and the wider business community need to make investment decisions. Over the next 10 years every cent of this extra money will be spent across the regions on a per population basis. That is good for local communities as it means the money will be there for the local projects that Transfund and Transit have planned in their areas for the next 10 years. 
All regions of New Zealand will gain extra transport project work from this funding: Hawke’s Bay will gain an extra $70 million; the Canterbury region will receive $252 million; Wellington will receive 219 million; further north Northland will receive $73 million; and Auckland will receive $716 million and another $9 million from the consolidated account. I reinforce the Minister of Transport’s view that effective land transport that meets the needs of industry helps attract investment into areas with potential growth. This extra money adds to the Government’s $227 million from the “Moving Forward” package of 2002. The increase in petrol excise and road-user charges will generate approximately $207 million annually excluding GST. This Government is committing a massive $18 billion to land transport over the next 10 years to rebuild the country’s neglected infrastructure. I restate to this House and to members of the public that all the additional funds from this tax will be dedicated to land transport and allocated under the National Land Transport Programme. Its provision it is promised will improve land transport roads and local networks. 
I say to those on the Opposition benches who are considering voting against getting New Zealand moving that they are risking the New Zealand economy and frustrating New Zealanders. National says that the money should come from slashing other areas of Government spending where money raised from fuel duty is currently spent. Two of the biggest areas funded by the Crown are health and education. Those members should try telling the public: “Oh sorry! There’s going to be less money for nurses less money for doctors and less money for treatments.” Is that what the public wants? Try telling people: “There will be no more money for computers in schools and there will be a cut-back in public services and tertiary education.” That is the prescription of the National Party. Or does the National Party want to plunder the balance sheets of State-owned enterprises and the New Zealand Superannuation Fund or the committed capital expenditure programmes for hospitals and prisons which are a major constituent part of what is referred to as a surplus? 
What New Zealander would vote for those cut-backs? New Zealanders do not want a Government that would vote to strangle public services. By failing to support this transport funding package National is saying loudly and clearly that it will not invest in making our roads safer. It will do nothing to reduce congestion or help business to undertake its work by decongesting our roads. Ordinary Kiwis trying to get their kids to school on time in a car need decent roads to get through the traffic flows. The National Party is saying that it will do nothing to help those ordinary families in that situation. 
 This Government by contrast says “Yes” to safer better roads and better infrastructure. However good transport systems cost money and this bill ensures that there is money now and in the future to make improvements to land transport. Companies complain that domestic freight is stuck in traffic as the roads are clogged. People running businesses are sitting in traffic. This is bad for productivity and this Government is determined to turn that round and keep New Zealand competitive. 
As I conclude I would like to quote the National Party leader who said: “There is no doubt that our roads are under huge pressure.” He also said: “The real solution to Auckland’s traffic congestion lies in building more roads and doing so without delay.” The failure of National and New Zealand First to support this bill is another flip-flop: flip—something needs to be done; flop—failing to commit to what needs to be done. No one wants to be sitting in traffic. It makes sense rather than burning petrol in thin air and getting nowhere to put some extra money into fuel thus getting traffic flow going and safer better roads. 
The Customs and Excise (Motor Spirits) Amendment Bill is designed to provide a more secure funding base for improvements in land transport. It is only with a dedicated revenue stream indexed to inflation that we can be confident that all our land transport will receive the ongoing improvements it needs. This Labour-led Government is bold enough to make the tough decisions that will get New Zealand moving. Responsible and progressive members will vote in favour of this bill. I recommend the bill to the House.