Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
Cosgrove Clayton: Questions for Oral Answer — Questions to Ministers 
[Volume:616;Page:12042] 
2.  
CLAYTON COSGROVE (Labour—Waimakariri) 
 to the  
Minister of Finance 
: Has the Government made any announcements in respect of the financial implications of the Auckland transport package; if so what were they? 
Hon Dr MICHAEL CULLEN (Minister of Finance) 
: 
 Today’s announcement confirms the main elements of the package announced in December: additional Crown funding amounting to $1.62 billion over 10 years from 1 April next year; changes to governance including a new single transport entity; and changes to key planning documents. Details announced today also set up a clear pathway to improved transport outcomes in Auckland. A bill giving effect to those changes has been tabled and is supported by both the Greens and United Future. 
Clayton Cosgrove 
: Will the Auckland package have financial implications for the rest of the country? 
Hon Dr MICHAEL CULLEN 
: Yes. For Auckland the transport package means an additional $1.62 billion over 10 years for investment in transport initiatives made up of $720 million from increases in road-user charges and excise duty and a further contribution of $900 million from the Crown. For the rest of New Zealand there will be an additional $1.35 billion over 10 years from increases in road-user charges and petrol excise duty for devotion to road transport issues. 
John Key 
: Why did the Minister not reveal in the December transport package the decision to increase petrol excise duty each and every year by the rate of inflation; and can he confirm that this latest “stealth” tax will cost the average Kiwi motorist half a cent per litre? 
Hon Dr MICHAEL CULLEN 
: The answer is that the release in December was structured very much around Auckland and on the initial moves around Auckland. In fact there was an oversight in that regard. The matter had been discussed with other parties who supported the measure. Indexation is necessary because otherwise the excise duty will lose real value year by year in terms of roading. All the additional amounts will go into road transport because only the portion— 
John Key 
: There won’t be any additional amounts. 
Hon Dr MICHAEL CULLEN 
: If the member would be quiet he may learn something. Only the portion of the excise duty that goes on road transport will be indexed not the portion that goes into the Crown account. If the member wants to have more roads he has to learn to pay for them—that is the way life works in New Zealand. 
Keith Locke 
: Can the Minister confirm that the joint officials group on Auckland transport showed that investment in public transport and demand management were critical to fixing Auckland’s congestion problems? 
Hon Dr MICHAEL CULLEN 
: It is clear that public transport and demand management will play a very significant role in the management of Auckland’s transport problems but given the nature of the shape of the city and the nature of traffic flows within it—which are not simply flows from the perimeter into the centre—it is also important there are major improvements in roading in Auckland. 
Hon Peter Dunne 
: Will the Minister confirm that a critical part of this package is the introduction of a diversion of the petrol excise duty into direct roading costs over the next 10 years—which will be the most significant diversion to occur in the history of the country? 
Hon Dr MICHAEL CULLEN 
: Yes. All the 5c-a-litre increase announced for next year will go into road transport and the indexation applies only to the amount that goes into road transport. So progressively over time the proportion of the total excise duty going into road transport will rise as it has already done under this Government.