The New Zealand government is setting its sights on expanding investment in public transport, including rail, with a new plan to boost spending over the next 10 years.
The Government Policy Statement 2018 on Land Transport shows that investment will rise from $3.6 billion this financial year to a record $4b in 2018-19, increasing to $4.7b a year by 2027/28. Overall, public transport spending is to increase by 68 per cent compared with the equivalent 2015 plan.
$1 billion will also be invested this year in specific projects, including City Rail Link.
Transport minister Phil Twyford said that, under the plan, councils would be investing a further $1 billion each year.
“The majority of regional councils made submissions in support of this plan after suffering funding cuts under the previous government,” Twyford said.
“The New Zealand Transport Agency will increase their share of costs for certain high and very high priority locally-led projects, meaning councils can get more transport investment without asking more of ratepayers.”
Somewhere between $310 million $815 million each year will go towards a “transitional rail” programme, which will set aside funds for passenger rail projects, particularly those in areas where demand is outpacing current capacity and where there are conflicts between freight and passenger services. Interregional commuter services will also be prioritised.
The plan also indicated that between $1.7 billion and and $4.8 billion will be allocated for rapid transit funding over 10 years, and will include light rail infrastructure in Auckland.
Funding for the plan will be made possible by increases to fuel excises and charges.
“There will be three increases in Petrol Excise Duty of 3.5 cents a litre from 30 September, and equivalent increases in Road User Charges from 1 October, and further 3.5 cent increases in 2019 and 2020. This will cost the average family 83 cents a week this year, rising to $2.50 a week by 2020,” Twyford said.
“The increased excise will fund $5 billion of investment over the next decade. If the Opposition intends to scrap this funding, they must explain which $5 billion worth of roads, public transport projects, and safety improvements they would cancel.”