Twyford PhilHon PHIL TWYFORD (Minister of Transport): I give in. I can't resist any more the loquacious charms of Mark Mitchell. He is the straw that broke the camel's back and I feel compelled to respond to his impassioned entreaties about Penlink. I feel really sad that we never got to see the fourth term of the last National Government because they were going to do so much. The fourth-term National Government—they were going to build Penlink they were going to solve the housing crisis they were going to do so much. They were going to do so much and sadly—sadly—we'll never get to see all the wonderful things that were going to happen.In fact Penlink is a very very good example of this what I would call fourth-term National-itis" because after nine years—nine years of talking about Penlink of promising that they were going to build Penlink—we never saw a scrap of action.Hon Shane Jones: Not a scrap.Hon PHIL TWYFORD: Not a scrap. Not a skerrick of action on Penlink after nine years in Government. In fact the same applies to Mill Road another roading project that the National Government loved to wax lyrical about. But in nine years did we see any action on Mill Road? Not a skerrick of action on Mill Road and yet now they're in Opposition they continue to warble on about these roading projects.But Mr Mitchell Mill Road and Penlink are listed in the schedule of projects that Auckland Council has provided that is required under this bill. Under this regional fuel tax bill Auckland Council has to come up with a list of projects. They have to come up with capital projects that are designated in a list of projects that are named specifically. Auckland Council just can't take the money that's generated by this regional fuel tax and say "Oh we're going to spend it on some vague list of initiatives." No they have to come up with a precise list of named projects and Mill Road and Penlink are included in this.So this Government in nine months has done more on Mill Road and Penlink than the former Government did in nine years. We've actually come up with a fully funded plan—a $28 billion fully funded plan—that includes the projects that they talked about for nine years. So Mr Mitchell that's our plan. Our plan is to build Penlink and Mill Road and we have fully funded it—something that you had nine years to do and never did.I also want to correct the numerous claims that were made by Opposition members about light rail. They love to pejoratively describe it as a tram set. They love to say that it's a trolley set. Not a cent of the regional fuel tax money will be spent on the light rail projects but that didn't stop them. That didn't stop them with their campaign of misinformation.I also want to reply to the Parliament's great devotee of King Lear—Chris Penk of Helensville—who claimed there was no guarantee of specific projects. Au contraire this legislation requires a specific register of projects. He's absolutely wrong. Chris Penk: What's our project?Hon PHIL TWYFORD: He's absolutely wrong and in fact if that member will just hold his breath his electorate will be a massive beneficiary of the $28 billion transport plan. It's fully funded not like the transport plan that the former Government put up that they left with a $9 billion hole—a fiscal hole of $9 billion.Now Mr Penk that's not an invented fiscal hole. That's not a fiscal hole invented for electoral purposes like the one that we saw from the former National Government. It's a real fiscal hole—$9 billion. Watch my lips: $9 billion. This Government within seven months of taking office landed for the first time in history a 10-year fully funded $28 billion plan thank you very much.I want to mention the question of rebates which one or two Opposition members have mentioned. I wanted to say to the members of the Finance and Expenditure Committee who discussed the question of rebates for people who for example are not using the fuel that's purchased that's covered by the regional fuel tax on-road in Auckland—our position on this is that the bill should reflect the rebate mechanisms that are currently in play for the fuel excise duty. But we did listen to the submissions that were made by a number of people who came along to the select committee including Auckland Council who argued for a more expansive and a fairer system for dealing with rebates in relation to the regional fuel tax.I'm happy to let the members on both sides of the House know that I've commissioned some work by the Ministry of Transport on how we can reform the rebate system not only for the regional fuel tax but for the fuel excise duty. My intention is that we'll have that work done. We acknowledge that the current rebate system is not fair. It's archaic it was put in place many decades ago and it's time to reform it. We will bring back reforms to this House not only for the fuel excise duty but also for the regional fuel tax.I want to comment on the crocodile tears that were being shed by the bucket by the Hon Paula Bennett who was expressing great emotion for people who would be disadvantaged by this regional fuel tax. We have never denied that the regional fuel tax is a regressive tax—it is—but actually the effects of congestion on low-income people are far more regressive and far more damaging to their standard of living. This is a Government that is determined finally—after nine years of neglect and drift our Government is committed to doing something about the parlous state of Auckland's transport system. It's fine for the Opposition members to be chipping away but they had nine years while congestion got worse every single year—every single year—to the point at which Auckland is losing $1.3 billion a year in lost productivity. The drift and neglect from that Government over nine years has held back the prosperity and the growth of our country's biggest city. That's why we're committed to doing something about it. That's why we've landed a $28 billion transport plan.This regional fuel tax will contribute $1.5 billion in revenue directly into that $28 billion plan. It will free up another approximately $3 billion in subsidies. It will leverage in total nearly $4.5 billion for this transport plan.I want to be very clear about this: we take seriously the regressive nature of this tax. It will cost the average household according to the Ministry of Business Innovation and Employment along with the projected increase of three consecutive increases of 3c on fuel excise duty—the fuel excise duty and the regional fuel tax will cost the average household approximately $5 a week. This Government has already through our Families Package put $75 a week—$75 a week—into the budgets of 384000 low and middle income households. So $5 a week from petrol excise and fuel in the regional fuel tax; $75 a week through the Families Package for low and middle income families—consider the scale difference in those two things.Finally I want to comment about Nikki Kaye's Supplementary Order Paper 27 which aims to exempt both Great Barrier Island and Waiheke from the regional fuel tax—that's her proposal. But we've considered that. The select committee considered it we heard submitters on it and we've given this issue very serious consideration."