Road Spending Cut Despite Fuel Tax Boom

ROAD SPENDING CUT DESPITE FUEL TAX BOOM

Wednesday 12 May 2010: Motorists in NSW and the ACT will be disappointed with a Budget that has no commitment for new roads or upgrades of some of the State’s most dangerous highways, despite fuel excise reaching a record $16.1 billion.

NRMA Motoring & Services President Wendy Machin said while last year’s stimulus package resulted in road funding increasing to $5.1 billion, this year’s Budget was a blow to roads.

“NRMA is very disappointed with this year’s Federal Roads Budget,” Ms Machin said.

“Motorists’ contribution to the Federal coffers has increased to over $16 billion in fuel tax, yet funding has been cut.

“New roads needed to meet Sydney’s growing population have been abandoned once again.

“Regional roads that attracted so much attention over the year for a number of fatalities, such as the Pacific and Princes highways, have been given no additional funds to make them safer.

“The fuel tax bonanza comes mainly from diesel, which makes the decision to provide no new funding for regional roads bizarre.”

The Federal Budget has also reduced funding for the Green Car Innovation Fund.

“While the rest of the developed world is looking for ways to become less dependent on oil this budget sends Australia off in the wrong direction – we should be spending more on alternative fuel and technology, not less.”

Ms Machin welcomed the Government’s decision to keep fuel excise at the same level for all fuel types.