Extra petrol tax for Aucklanders

Auckland motorists will pay at least an extra five cents a litre for petrol as from next year.

Auckland Regional Council today voted in favour of imposing the additional tax, which would be used solely for public transport improvements.

The Government is considering a further five-cent petrol tax rise for Auckland, which would go towards new roads.

The Land Transport Amendment Bill, currently before a Parliamentary committee, has to be passed before either increase can be imposed.

If passed, the 5-cents-a-litre increase would come into effect on January 1, next year.

Regional council chairman Michael Lee said the money would be go towards implementing its 10-year transport plan, which includes electrification of the rail system and better bus and ferry services.

"This year we will be working ... to buy new, quieter and faster electric trains as part of wide-ranging improvements to train, bus and ferry services in time for the Rugby World Cup in 2011," he said.

Mr Lee said this was a better option than using rates to pay for the upgrades.

"Rates would have had to increase by 17 per cent each year for 10 years, which would be unaffordable for the people of Auckland."

The tax was supported as part of the council's adoption of its 2008-09 draft annual plan, which proposes a 4.95 per cent rates increase.

The plan has now been released for public submission. Public hearings will be held in May and June before the plan is finalised.

- © Fairfax NZ News