Vernon Small, Dominion Post

Push and Shove

May 25 2007

The Government has fired a broadside at the Green Party, warning that its opposition to Transmission Gully funding threatens to derail its own pet project of improving Auckland's trains.
As political jostling over the shape of a proposed fuel tax for new transport projects intensifies, Revenue Minister Peter Dunne has claimed there are no Wellington rail or public transport projects that need funding from the levy.

The declaration by the Ohariu-Belmont MP, and staunch Gully supporter, puts him on a collision course with the Greens, who want all of the proposed new funding to be spent on public transport.

Yesterday, Finance Minister Michael Cullen issued a thinly veiled threat to the Greens that their preferred rail projects could be thrown into doubt if they tried to block particular projects such as Transmission Gully.

"They can't have a veto right over individual projects or they will find they are vetoing the electrification of Auckland at the same time."
Green co-leader Jeanette Fitzsimons said it was not a question of vetoing projects, but recognition that the Greens had six votes to United Future's two — and having that extra influence recognised.
She has said the Greens will not support a proposed law, allowing regional authorities to impose a fuel tax of up to 10 cents a litre, unless Wellington was blocked from pouring all the money into Transmission Gully.

The Wellington region's mayors rounded on Ms Fitzsimons' opposition to the proposed new inland motorway project, with one saying MPs should keep their noses out of local business.

Dr Cullen has said that up to 5c of the tax, enough to fund projects worth $215 million in Wellington, could be used for road building.

The Greens are concerned Wellington local bodies may use the tax solely for roading by fixing it at 5c a litre — raising none for public transport.

Dr Cullen said the Government was willing to negotiate the final shape of the law.

One option could be to stipulate that half of any tax raised must be earmarked for public transport.
However, Mr Dunne, who is also the United Future leader, said Transmission Gully was the region's top priority and the only project that fitted the criteria.

"As far as Wellington is concerned, there's no need for a regional fuel tax to fund rail and public transport initiatives. They have been provided for in the funding packages the Government has already provided. So the only issue for Wellington in that context is Transmission Gully."

Ms Fitzsimons said Mr Dunne's claim was "breathtaking".

Funding so far announced would cover only about half that needed for the double tracking and electrification of the rail line to Waikanae and beyond.

"If we are talking about greenfields projects on the scale of Transmission Gully, what about a light rail link through to the airport?" she said.

Mr Dunne said the Greens' support may not be needed. However, if they did manage to block the project "they will have to explain in election year to the region why its favoured project is being stymied".

Dr Cullen said an alternative would be a regional fuel tax across the whole country without legislation, but that would defeat the purpose of tying the tax to specific regional projects.

The Government would not make the measure a confidence issue, on which the Greens have pledged to abstain. Dr Cullen said he did not think he should force confidence "on issues like that in the modern Parliament".