Gosche Mark: Questions for Oral Answer — Questions to Ministers 
Gosche Mark: Questions for Oral Answer — Questions to Ministers 
[Volume:624;Page:19525] 
8.  
Hon MARK GOSCHE (Labour—Maungakiekie) 
 to the  
Minister of Transport 
: What are the main conclusions of the Surface Transport Costs and Charges Study? 
Hon PETE HODGSON (Minister of Transport) 
: 
 There are three main conclusions: firstly that the charges paid by road and rail users do not cover the costs of those networks and that some costs especially environmental costs are not paid by anyone; secondly that rail users pay a higher proportion of their costs than do road users; and thirdly that users of urban local roads pay a lower proportion of costs than users of either rural roads or State highways. 
Hon Mark Gosche 
: How much money is paid into the Crown account by road users and how much is paid out from it to cover road-related costs? 
Hon PETE HODGSON 
: In 2001-02 the year that concerns the study about $550 million of fuel duty was paid into the Crown account while over twice that amount was paid out from it to meet transport-related costs. 
Hon Maurice Williamson 
: Could the Minister tell the House whether the public have a right to be cynical about the time frame for the announcement of this stuff given that back in 2003 the Minister of Finance Michael Cullen said: “I expect the results of these to be released early in the new year.”; that at the beginning of 2004 the then Minister of Transport Paul Swain said: “I expect to announce the results of these reports within the next couple of months.”; and that now the report is magically available the day before the new 5c petrol tax kicks in? 
Hon PETE HODGSON 
: No the member is not entitled to be cynical. As the Minister of Transport I required the Surface Transport Costs and Charges Study to be subject to a peer review and then to be subject to a second peer review. Both peer reviews support the findings of the study and it is important that the nation knows about it. 
Peter Brown 
: In light of the Minister’s response particularly to the questions of the Hon Mark Gosche can I take it that in addition to the April Fool’s Day tax which comes in tomorrow; the inflation tax which comes in next year; the storage tax which is likely to come in next year; and the carbon tax which will come in the year after the motorist will have to face yet another tax as a result of this Surface Transport Costs and Charges Study? Am I correct in that assertion? 
Hon PETE HODGSON 
: No the member is not correct. There are no policy implications from the study. There are no decisions to be derived from the study. It is for information. It will inform future policies of this Government and of future Governments I am sure. It is not however the Government’s intention to raise petrol tax again. 
Jeanette Fitzsimons 
: Can the Minister confirm that the environmental and social costs evaluated in this study are conservative and incomplete and that diverting money out of the Crown account and into roading would simply result in road transport paying even less of its true costs? 
Hon PETE HODGSON 
: I can confirm that. The environmental costs are conservative. The social costs are non-existent. 
Larry Baldock 
: Can the Minister confirm that United Future has been constantly asking the Government to complete this study for at least the last 18 months and can he explain what the study shows about the costs incurred by the transport sector met from the Crown account that are additional to the funding provided by petrol excise tax? 
Hon PETE HODGSON 
: The answer to the first question is yes. The answer to the second question is that it shows that the cost to the health and social welfare system of vehicle accidents that is not met by accident compensation is around $670 million that the health-related costs caused by vehicle emissions are around $442 million and that those costs alone are around double the amount of fuel excise duty that goes into the Crown account each year. 
Larry Baldock 
: Does this statement in the study: “Rates are fixed charges based on property values and bear no relationship to the use of the roading network by property owners. While it can be argued that most ratepayers use public transport and/or drive cars using rates to contribute to the cost of roads creates equity issues particularly as the demography of New Zealand’s population is changing.” indicate that the Government may consider adjusting the financial assistance rate which is a heavy burden upon urban councils across this country and particularly upon farming? 
Hon PETE HODGSON 
: Yes. The financial assistance rate is due for a review and the member makes a good point. The study in general hints that the future should be less fixed charges and more variable charges.