Baldock Larry: Questions for Oral Answer — Questions to Ministers 
Baldock Larry: Questions for Oral Answer — Questions to Ministers 
[Volume:624;Page:19116] 
8.  
LARRY BALDOCK (United Future) 
 to the  
Minister of Transport 
: How much does the Government pay for the ongoing health and social costs of road accidents over and above those met by the Accident Compensation Corporation? 
Hon PETE HODGSON (Minister of Transport) 
: 
 The Ministry of Transport estimates the total to be over $600 million and a further more than $400 million from health costs arising from air pollution. 
Larry Baldock 
: Does the Minister agree that investing in improvements to the safety of New Zealand roads that could prevent many road accidents is preferable to spending money in an effort to deal with road accidents after they have occurred; if so how does diverting over $600 million of petrol tax into the Crown account where it cannot be spent on road-safety improvements represent the best approach? 
Hon PETE HODGSON 
: Clearly it is a good idea to do both—to invest in people’s health and in safer roads. 
Peter Brown 
: What proportion of the $600 million that is taken and put into the Crown account is attributed to health costs? 
Hon PETE HODGSON 
: It all goes to the Crown account and from the Crown account comes about or a little over $600 million for health and social benefit costs arising from accidents; and as it happens from the same Crown account comes a further $400 million or more from health effects arising from air pollution. All of these are exclusive of accident compensation costs. 
Peter Brown 
: Why is it that the $600 million that goes into the Crown account and subsequently goes into health as the Minister has just indicated comes totally from the petrol motorist; and if these costs are legitimate why does the Government not take something from the diesel operator the truck operator or anybody who uses other forms of fuel? 
Hon PETE HODGSON 
: The member is right to an extent—that road-user charges which total almost $700 million go straight into the National Land Transport Fund. However if a proportion were to be diverted from the Crown account and a lesser proportion diverted from the Crown account and into the National Land Transport Fund we would have a zero sum gain. 
Hon Ken Shirley 
: Can the Minister say why the 5c per litre fuel levy introduced in July 2004 by his Government for accident compensation costs associated with road accidents is being applied to specialised off-road machinery such as steel track excavators when such vehicles are specifically prohibited from using public roads? 
Hon PETE HODGSON 
: If I understood the question correctly the proper answer is I am not the Minister for ACC. 
Larry Baldock 
: Can the Minister give an estimation of how much he thinks the recent road toll reductions can be attributed to better roads being constructed in New Zealand rather than just police enforcement? 
Hon PETE HODGSON 
: No I am afraid I cannot. Despite endless attempts by people I cannot give a straight answer to that question. What is worth saying is that investment in roads has two characteristics: firstly they are very expensive and secondly the safety benefits last a very long time. 
Larry Baldock 
: Does the Minister agree that it is helpful if New Zealand motorists are given proper answers as to where the diverted portion of fuel excise taxes is spent so they can make up their own minds about whether it is acceptable to now be paying an additional 5c from 1 April to contribute to better roads in New Zealand; if not why not? 
Hon PETE HODGSON 
: Successive Governments have spent some time and effort saying the diversion of fuel excise duty into the Crown account does not pay for health costs and never has gone anywhere near paying for health costs; and I welcome the opportunity to say it again.