Now David really has some explaining to do   16 Apr 2014

Hon Gerry Brownlee
Minister of Transport

16 April 2014 Media Statement

Now David really has some explaining to do

Transport Minister Gerry Brownlee says Labour leader David Cunliffe has got himself in the most astonishing predicament on TV3’s Firstline this morning, by claiming the National Land Transport Fund is “going to be in surplus very soon,” so it’s time to give some of it back to taxpayers.

“We know Mr Cunliffe is under significant pressure from his own caucus, having announced policy on the hoof yesterday without telling the team back at Labour’s war room,” Mr Brownlee says.

“Now, when asked by the media this morning to explain where the forgone revenue from this policy would come from, Mr Cunliffe has resorted to making things up, presumably thinking no one would call him on it.

“The fact of the matter is the National Land Transport Fund is by its very nature incapable of achieving a surplus, or a deficit – it is what it is.

“This is an ongoing fund which is used to fund the National Land Transport Programme, which for the years 2012-2015 will see $12.3 billion invested in road building, road maintenance, public transport, and which includes $300 million a year for targeted on-road Police enforcement.

“The fund might be above or below forecast at any point in time due to factors like the performance of the domestic economy, or fuel prices, but this is a dedicated fund, with all its money coming from Road User Charges and Fuel Excise Duty on an annual basis.

“All of that money is spent on New Zealand’s roads and public transport through the National Land Transport Programme; the question of surplus or deficit simply never arises.

“What’s more, thanks to changes in driver behaviour – in particular more efficient use of vehicles by large transport fleets using GPS technology – and increasingly fuel efficient vehicles, there has been greater financial pressure on the National Land Transport Fund in recent years, not less.

“Despite that, over the past six years this government has invested more in our land transport system, following a sustained period of under investment, and that’s just starting to pay off for all New Zealanders.

“We know this is increasingly difficult territory for Labour. They don’t want to talk about building roads because they don’t want to offend their Green coalition partners.

“But if Mr Cunliffe believes there is a surplus to be had in the National Land Transport Fund, he needs to explain what bits of the fund’s programme he is going to cut.

“If there’s some mystical way of creating a surplus inside the National Land Transport Fund without cancelling planned investment, David Cunliffe needs to tell us.

“I’d love to know what document he has seen that suggests this fund has, or will soon have, more money than it needs.”

ENDS

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