The Government's scrapping of Auckland's regional fuel tax has destabilised a swathe of transport projects, Mayor Wayne Brown says, and he has asked Auckland Transport to immediately stop work on projects funded by the tax.
Brown issued a media release after writing to Auckland Transport (AT) chairman this afternoon.
He said: “Auckland Transport must not assume that regional fuel tax funding will simply be replaced by higher council rates or debt.
"The council's governing body will need to take time to understand the impact of the Government’s announcement and council’s options for addressing the shortfall."
The mayor said a $14 billion capital investment programme was planned for the council's next 10-year budget, but that hinged on the tax remaining in place for at least another two years.
"The Government’s announcement therefore creates significant funding uncertainty for a large portion of Auckland Transport’s capital programme," he said.
Auckland's mayor says major transport projects are now at a crossroads. (Source: 1News)
Speaking to 1News last week, Brown said he did not want to propose raising rates in order to cover the budget shortfall.
He has now asked AT to review all projects with funding from the regional fuel tax, including those where construction contracts have already been "executed".
This included projects like stages two and three of the Eastern Busway and Reeves Road Flyover. The mayor said he wanted AT to look into options for deferring, cancelling, or rescoping these kinds of projects.
Meanwhile, all work should stop on projects earmarked to be funded by the tax but where construction contracts haven't been executed, the mayor said.
These included the Great North Rd, Glenvar and Lake Rd improvement projects.
"In some cases, programmes or projects may be able to be scaled back to avoid unfunded costs, and this may be the appropriate response."
Enabled by the previous government and officially enacted by council, the city's outgoing regional fuel tax was introduced to help fund roading and non-roading transport projects in 2018. The tax brought in around $170 million a year.
National and coalition partner ACT campaigned against the fuel tax when it was first introduced and pledged to scrap it during last year's election campaign.
In scrapping the tax, Transport Minister Simeon Brown said it would ease the financial pressure facing households amid major cost of living pain.
He said money gathered through the tax had been used for "cycle lanes, red light cameras and speed humps". Auckland's mayor said today he agreed that some projects, such as "low-value cycleways and raised pedestrian crossings" were no longer a priority.
“I agree that we need to stop wasting money on things that Aucklanders don’t want or need. But the Government is also turning the tap off to fund the many things we do need," he said.
“All of this again highlights one of my core messages: Aucklanders need to have a greater say over the region’s transport programme.
"We are the only council in the country that cannot set its own transport plan, and that is just ridiculous. I am hopeful the Government will fix this."
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