All of the new 5 cents per litre petrol tax will be spent on roads.
The Land Transport Management Act 2003 made it illegal to spend roading revenue entirely on roads.
Tourist regions will benefit the least from this extra tax because these funds are to be raised in proportion to the amount of traffic in each region but will be distributed according to the number of people living in the region.
Worse, the Financial Assistance Rates for local authorities have not been increased and show no signs of being increased. The only way local authorites can access this extra money is to match it with additional ratepayer funds.
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