The government pushed back on concerns by the National Party that the Auckland fuel tax could increase fuel prices in other areas of New Zealand, but could not provide a guarantee it would not happen.
Instead the Minister of Transport guaranteed in Parliament today the Government "won't waste billions of dollars of taxpayers' money on a few handpicked, gold-plated express ways".
In Parliament today National Party transport spokesperson Jami-Lee Ross asked: "What action will [Minister for Transport Phil Twyford] take to ensure that people in Southland aren't directly impacted by regional fuel taxes in Auckland, pushing up prices around the rest of the country as a result of price spreading?"
"This government has made its attitude to price spreading very clear to the fuel companies. We have initiated changes to the Commerce Act, which will deal with anti-competitive behaviour," Mr Twyford answered.
It comes after emails were leaked this week which claim to show BP managers purposefully hiking prices north of Wellington to persuade cheaper rivals to follow suit.
Mr Twyford couldn't guarantee other New Zealanders outside Auckland would not be impacted by price spreading as a result of Auckland's fuel tax, "but I will provide a guarantee that this government won't waste billions of dollars of tax payers' money on a few handpicked, gold-plated express ways in the main urban centres, as that government did for nine years."
The Transport Minister's questioning came after National Party leader Simon Bridges asked Prime Minister Jacinda Ardern for "specific steps" that will be undertaken by the government "to ensure the people of Southland don't get charged more as a result of Auckland's regional fuel tax".
"It'll be the fuel companies answering questions if that's used as an excuse to hike prices on New Zealanders it's not intended for," Ms Ardern said.
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