Will peak oil and global warming completely change the priorities for transport investment?
Without the revenue from the petrol tax how should transport be funded?
Have your say.
Sunday, August 5, 2007
Saturday, August 4, 2007
Happy 80th Birthday Petrol Tax
One reason for setting up this blog is to celebrate 80 years of petrol tax funding for developing the nation's roads and highways.
Another reason is to remind our elected leaders that the petrol tax was introduced at the request of the Main Highways Board, it wasn't a politicians bright idea. The petrol tax was introduced on the principal that the user shall pay for the development of modern roads, and for the benefit of the Main Highways Board not the government.
Further more, the revenue from the petrol tax only passes through the Consolidated Account because in 1927 the Main Highways Board did not have the ability to pay refunds on petrol used for non-road purposes. That is no longer the case today. Land Transport New Zealand does have the ability to process these refunds so there is no practical reason for this money passing through the Consolidated Account. The only reason for perpetuating this system is so that politicians can refer to road users contribution to the Land Transport Fund as "central government" funding.
Finally, this blog will raise the important questions of what condition our land transport systems are really in, how much we really should be spending on land transprt, and whether the petrol tax even comes close to meeting these costs.
When the petrol tax was introduced on 1 October 1927 it increased the price of petrol from $1.60 per litre to $2.05, adjusted for inflation.
Another reason is to remind our elected leaders that the petrol tax was introduced at the request of the Main Highways Board, it wasn't a politicians bright idea. The petrol tax was introduced on the principal that the user shall pay for the development of modern roads, and for the benefit of the Main Highways Board not the government.
Further more, the revenue from the petrol tax only passes through the Consolidated Account because in 1927 the Main Highways Board did not have the ability to pay refunds on petrol used for non-road purposes. That is no longer the case today. Land Transport New Zealand does have the ability to process these refunds so there is no practical reason for this money passing through the Consolidated Account. The only reason for perpetuating this system is so that politicians can refer to road users contribution to the Land Transport Fund as "central government" funding.
Finally, this blog will raise the important questions of what condition our land transport systems are really in, how much we really should be spending on land transprt, and whether the petrol tax even comes close to meeting these costs.
When the petrol tax was introduced on 1 October 1927 it increased the price of petrol from $1.60 per litre to $2.05, adjusted for inflation.
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