6. Question No. 6—TransportHon PAUL GOLDSMITH (National) to the Minister of TransportQuestion No. 6—Transport6. Hon PAUL GOLDSMITH (National) to the Minister of Transport: How much of the increase in fuel prices since the Government took office does he attribute to taxes and levies?Hon PHIL TWYFORD (Minister of Transport): Since the Government came to office it's made two decisions regarding taxation on fuel. Legislation was passed allowing Auckland Council to collect a regional fuel tax of 10c a litre. This will fund projects including Mill Road Penlink and $550 million worth of safety improvements at a cost of $2.60 a week to the average Auckland household. An excise increase of 3.5c a litre came into force on 1 October. This will enable the Government to make safety upgrades invest in neglected regional roads and tackle congestion at a cost of 75c a week to the average household. For context the pre-tax cost of petrol has risen by 35c in the past year including a 9c a litre rise in importer margins.Hon Paul Goldsmith: I raise a point of order Mr Speaker. This was a question on notice: how much of the increase in fuel prices does he attribute to taxes and levies? He's given us two figures but he hasn't added them up and he hasn't added any GST to it. So I haven't got an actual answer to the question that I asked.SPEAKER: Well I think the member's skills are—he could probably add them and divide them by eight couldn't he? Or by six or whatever one does these days?Hon Gerry Brownlee: I raise a point of order Mr Speaker. Questions on notice should be taken in a much more literal sense than perhaps a question that's asked as a supplementary where a Minister might—SPEAKER: I think the member's point is fair enough. I'm going to ask the Minister to have another go and he can give us one of two figures: the percentage or the number.Hon PHIL TWYFORD: Sorry sir could you repeat that again.SPEAKER: I'm suggesting that the member answer the question directly. He can either give a number in cents or he can give a number in the percentage change.Hon PHIL TWYFORD: The Government's made two decisions regarding taxation on fuel. The first is 10c a litre plus GST an excise increase of 3.5c a litre plus GST. In comparison to that there is a 35c increase in the pre-tax cost of petrol.Hon Paul Goldsmith: So does he agree that the Prime Minister's summation on 8 October that taxes and levies amounted to 6.8c was wrong?Hon PHIL TWYFORD: Well I think the Prime Minister provided the context and should have eliminated any doubts the member had about her statement. In the press conference that the Prime Minister gave she used figures for the share of the increase in petrol prices that had gone to central government in the year to 28 September—the latest for which data was available. This was made up of an increase in the emissions trading scheme charge and GST both of which were set by the previous Government. Now obviously at that point the excise increase had not then come into effect. The regional fuel tax goes to Auckland Council not central government and as the Prime Minister has said accounting for fuel excise increases New Zealand's taxes are the sixth lowest in the OECD and including the regional fuel tax Auckland's are the 10th lowest. As the Prime Minister also pointed out the lion's share of the increase in petrol prices in the last year is due to the pre-tax cost not Government revenue measures.Hon Paul Goldsmith: So was the Prime Minister's summation wrong?Hon PHIL TWYFORD: The Prime Minister's summation was correct.Hon Paul Goldsmith: So is he proud that his Government is collecting at least an extra 10c a litre outside of Auckland and more than 20c a litre in Auckland at a time when households are already under pressure?Hon PHIL TWYFORD: I'm proud that this Government is making the investments that the country desperately needs. In Auckland to get the city moving we're addressing the infrastructure deficit that we inherited after nine years of neglect. We're investing in safety more than any other Government in New Zealand history we're building modern public transport systems and we're investing in the rail network. This Government is making the decisions to support economic growth for this country by investing in transport infrastructure.Hon Paul Goldsmith: So why is he not prepared to accept that the Government-legislated Auckland regional fuel tax has not added extra costs to New Zealanders and their motoring?Hon PHIL TWYFORD: I just reject the premise of the member's question.Hon Paul Goldsmith: Why does he not consider using other Government funds for significant transport infrastructure as the previous Government did with the City Rail Link rather than adding new taxes?Hon PHIL TWYFORD: Well I did note that the Opposition has called for an abandonment of the fuel excise and the use of one year's budget surplus. I would point out to the member that since 1927 fuel excise has been the main funding source for transport and since the last Labour Government it has been fully hypothecated. Every single dollar raised by the fuel excise and road-user charges goes into investment in the transport system. It has provided a stable and dependable source of funding that was utilised very effectively when Simon Bridges was the Minister of Transport. Under that party when they were in office six excise increases—17c excluding GST—were added.Hon Paul Goldsmith: I raise a point of order Mr Speaker. The Minister is giving a speech on a totally unrelated topic—[Interruption]SPEAKER: Order! It's a point of order.Hon Paul Goldsmith: I asked him why he did not consider using other Government funds for significant transport infrastructure and he's talking about something that the previous Government did with its fuel excise.SPEAKER: Well I think the Minister was talking about precedent and I think that's fair. Does the Minister want to continue? Is there a supplementary?