Auckland’s Regional Fuel Tax has generated $13.2 million in its first month of operation – about $700,000 more than initial estimates.
The fuel tax came into effect on July 1, when petrol stations across the super-city put prices up by 11.5c per litre.
It was introduced as a means to raise funds to improve road safety and congestion across Auckland’s choked transport network.
Of the $13.2m (excluding GST) collected from 1-31 July, Auckland Council said $11m would go directly into transport projects – including rural road safety upgrades in Rodney and Franklin and new red light safety cameras.
A $1 million one-off lump sum would then go to the New Zealand Transport Agency for the administration costs in setting up the tax.
SIMON MAUDE/STUFF
Auckland’s Regional Fuel Tax has generated $13.2 million in its first month.
The Regional Fuel Tax is collected by NZTA, which forwards the revenue to Auckland Council, less any expenses.
Before it was brought in, it was estimated it would raise $1.5 billion over 10 years, allowing the council leverage to invest $2.8b into the $28b Auckland Transport Alignment Project (ATAP), the majority of which will be spent upgrading the city’s rail and bus networks.
Auckland Mayor Phil Goff said with raising road fatalities and serious injuries in Auckland, spending on road safety would be an immediate priority from the revenue.
“Last year 64 people died on Auckland’s roads and 749 suffered serious injuries. The increase in deaths and serious injuries was three times higher than elsewhere in New Zealand,” he said.
“The human, social and economic cost to our community of the road toll is huge and must be addressed.
“Aside from road safety spending, the focus of new investment from the RFT is to fix Auckland’s congested transport network.”
Auckland Council’s manager of financial strategy, Michael Burns, initially said the tax meant the council would be receiving on average an extra $12.5m per month.
Quarterly reports would go to the council’s Finance and Performance committee, with the first report due in November.
AA’s Auckland infrastructure spokesman Barney Irvine said the revenue generated was line with the association’s expectations.
“For us, the bigger question is whether all of the extra cost is being charged in Auckland, or whether fuel companies are spreading it around to other regions as well,” he said.
“We’ve heard some suggestions that this is happening, but it’s still too early to say. The Government’s due to report back on the performance of the scheme after the first three months, so we’re expecting that to provide a lot more clarity.”
– Stuff