Labour’s transport plan has a $3.2 billion hole
Labour has a $3.2 billion hole in its transport plan that could mean existing roads aren’t maintained, new roads are cancelled, and there is nothing for emergency work when severe weather hits, National’s Transport Spokesperson Chris Bishop says.
“Freezing increases to fuel excise and road user charges for an additional two years cannot possibly cost $1.8 billion, as Labour claims.
“The total cost of freezing all increases for three years is $4.68 billion over the forecast period, and National has already funded a one-year freeze in 2026/27 at a cost of $1.48 billion.
“That leaves Labour needing to find around $3.2 billion to pay for the following two years.
“Officials have costed the first year of the freeze at nearly $1.5 billion. Yet Labour is claiming the next two years combined will cost only $1.8 billion, or about $900 million a year.
“It’s not clear why each of those additional years would suddenly cost around 40 per cent less than the first, and Labour needs to explain how.
“Until it can, it appears that Labour has a $3.2 billion hole in the National Land Transport Fund, which is already oversubscribed.
“The Pre-Election Fiscal Update says that over the next four years National Land Transport Fund revenue ‘is likely to be enough only for continuous programmes, critical resilience activities, debt repayments and projects already underway’.
“So if Labour takes another $3.2 billion out of transport revenue without replacing it, what gets cut?
“To demonstrate the scale of the potential consequences of Labour’s fiscal plan, applied to the current NLTF period, a $3.2 billion hole could represent:
A 71% cut to state highway maintenance and pothole prevention; or
A 68% cut to public transport infrastructure and services; or
An 82% cut to local road operations, improvements, and pothole prevention.
“This election is going to be very tight, and the choice could not be clearer.
“It’s either a Labour coalition which would squander surpluses, increase debt, and hit Kiwis with nine new taxes. Or National with a plan to grow the economy, spend sensibly and pay down debt, with no new taxes so Kiwis get ahead and have a more secure future.”
