Regional fuel tax to fund electric trams to airport and Westgate

The Labour-led government will introduce an Auckland regional fuel tax to contribute to a multibillion-dollar investment in electric light rail transit (trams) to the airport and Westgate.

Incoming transport minister Phil Twyford has confirmed to the NZ Herald the coalition will make an immediate start on modern trams to Westgate as well as between the airport and downtown Auckland.

Twyford and prime minister Jacinda Ardern say the law will be changed to allow the Auckland Council to introduce a regional petrol tax, likely to be 10c a litre.

Auckland Transport produced this video on March showing how electric light rail transit (LRT) would work.

Ardern told Morning Report the petrol tax was not in her 100-day plan, but later in the day Twyford said “it won’t be too long after that”.

He now says the fuel tax may be introduced within “four to five months”, the Herald reports.

It could contribute about 10% of the $15 billion, 10-year infrastructure programme Labour has committed to.

Twyford expects to have commuter rail between Auckland and Hamilton in the next year.

“If and when Auckland Council request the regional fuel tax we will legislate the mechanism as a priority,” Twyford told the Herald.

Auckland mayor Phil Goff – and his predecessor Len Brown – advocated a regional fuel tax to boost the council’s limited budget for new infrastructure.

National declined to introduce the tax, suggesting road charges instead to help alleviate Auckland’s congestion.