Time for a petrol price inquiry


I have read of petrol reaching another all time high price in New Zealand today. This is on a commodity that in December 2017 New Zealanders were paying one of the highest pre-tax (i.e before tax added) prices in the world for. Due to some countries like the Netherlands having substantially higher taxes on fuel than New Zealand, we come in about mid field in the O.E.C.D. for total price after tax paid.

Do we need a goods and services tax (G.S.T.)on petroleum and diesel? I am not sure of the answer to that. The Automobile Association New Zealand has long called for a removal of G.S.T. on fuel, and says that it would lower petrol prices by 10c/L, and reduce pressure on already pressurized budgets.

Sure there is a petrol tax coming and petroleum companies do not want to have dollars shaved off their profit, but since when was that new? Sure the Middle East looks dicey at the moment – but that is the way it has been for most of the last decade. Sure there are costs incurred in refining product and getting it to the market, but again, that is the way it has been for yonks.

Basically it is theft and New Zealanders are blindly thinking “she’ll come right” eventually.

Well, no. It will not come right unless we kick this mentality that has cost us much as a nation, and is set to cost quite a bit more before long, to the curb. This notion that somehow the market will correct things and petroleum prices will come down is stuffed.

So, who is going to petition the Minister for Energy, Dr Megan Woods about the disgusting theft that petroleum companies are getting away with? There is no justification for any of the companies whose global parents hundred hundreds of billions of dollars (U.S.)per annum and are comparable in some cases to G.D.P.’s twice as big as New Zealand to not pay tax in full and on time.

Exxon Mobil NZ in 2017 made N.Z.$143 million profit, up 57% on the previous year. In the same year B.P. New Zealand increased its profit 65% to N.Z.$243 million and Z Energy increased their profit in the same time to N.Z.$263 million

It would cost me $100.80 to filll a 1.4 litre Hyundai Getz from completely empty at $2.24/L. A 3.0L Toyota Surf would cost $89.05 to fill its 65L tank with diesel at $1.37/L.

Yes, we need to be cutting down on carbon emissions, but until there is a serious uptake in electric cars, which still have a number of barriers in the way and hybrids, New Zealand is not going to make inroads on its Paris Accord obligations. But to get there, those vehicles must first become more affordable. Right now a hybrid or electric vehicle is simply not in the budgetary of many New Zealanders.

Queenstown faces economic crunch


Queenstown: urban population 13,500.

When one thinks of Queenstown they think of a year round tourist play ground that thrives in both summer and winter. A play ground with a stunning scenic with lakes, mountains, fast rivers and a rich history of gold mining and more recently tourism. People fly in direct from all over New Zealand and from Sydney in Australia to take advantage of the Lakes District’s many offerings.

But is the same stunning landscape that makes it a magnet in the first place a potential choke? Sadly the answer is yes.

The geography of Queenstown, whilst ensuring its popularity as a scenic spot/holiday town, is also a potential choker on growth. Constrained by Lake Wakatipu on one side and high mountains on the other, Queenstown can only spread along the lake shore and into adjacent valleys.

Vineyards, orchards, gold mining relics are all nearby. There are multiple festivals such as the WInter Festival as well as the bi-annual Warbirds over Wanaka airshow and many others. But if Queenstown is subject to rampant growth for the sake of growth, a whole set of factors are likely to combine to make it no such a great place after all. Let us have a look at them.

Rents are high. For years it has been a place that has been barely affordable for locals, who no longer recognize it as the sleepy place it was 30 years ago. The demand for services, with new buildings springing up all the time, combined with its year round attraction means a continually booming tourist town, but with an under current of socio-economic problems that are not pleasant.

There is exploitation. Non New Zealanders have moved into the town, which is fine – the problem is not whether people come or not, but whether they are willing to comply with New Zealand labour laws. People moving in to make a quick dollar are not necessarily going care about the fact that there is a minimum wage applicable to all workers in New Zealand; 40 hour working week and holiday provisions for those who have to work statutory holidays.

There is a land issue. Queenstown cannot continue spreading endlessly outwards, or it will risk undercutting the businesses on the towns periphery that help to make it and the surrounding area so special. Going vertically up also has its problems. The taller the building, the correspondingly deeper the foundations will need to be and on land that is already at a premium, that might just be some sort of impenetrable ceiling. The geology of the land, relatively close to large faults means shaking intensities are likely to be fairly high in a large earthquake, which will make lateral spreading, landsliding and liquefaction likely.

And then there is the transport issue. The exponential growth of Queenstown and the accelerating growth of Wanaka has put major pressure on the roading network throughout the area. The airport has a plan to increase tourist numbers from 2 million currently arriving per annum to possibly 5 million. These are the only two transport modes in and out of the town. No railways exist – where would you put one even if it was viable? – and catering for 30,000 vehicle movements on peak days – that is about 20 a minute, every minute, all amount to a distinctively unattractive problem.

By all means come to Queenstown. Stay a couple nights. Travel on the T.S.S. Earnslaw up to the end of the lake. Visit the nearby gold mining sites. But don’t be surprised if this place is close to hitting its limits.

Revitalizing South Island railways


After nine years of National in office, with its huge emphasis on building highways that were not always necessarily needed or wanted, it is refreshing to see the Government taking a different tack. Railways have long been a significant part of the transport scene in New Zealand and a lack of long term planning and investment has meant that it is underfunded. There are a few railway projects that are worthy of further consideration.

  1. Reviving the Southerner passenger train
  2. Having a once daily passenger train service to Hokitika and Westport to connect with the Tranz Alpine train
  3. Should a waste to energy plant be developed on the West Coast, Christchurch could be an assembly point for waste fuel to be transported to the plant
  4. A railway link to the oil terminal at Lyttelton could provide for an alternative to having a large number of fuel tankers on the road

One such proposal was made public on Saturday in the newspaper, in an article about a new passenger train service on the West Coast of the South Island. It will connect with the existing Tranz Alpine which has been recognized in the past as one of the great train trips in the world.

A few weeks ago there was a suggestion that the Southerner train which used to run from Christchurch to Invercargill would be revived. It was stopped in the relatively early days of the Helen Clark Government due to declining numbers. Since then there has been increased concern about the large number of road users, and also that it would be a loss to the tourism industry if a revival is not attempted.

In September 2016 there was mention of a waste to energy plant being built on the West Coast. One way of paying for the Otira tunnel would be to put the waste fuel for any future plant on the train in Christchurch. An unloading yard next to the facility would remove the need for any trucks, and create a few jobs at the same time.

Lyttelton is undergoing a significant overhaul and is trying to figure out what sort of port it wants to be post-earthquake. Would it consider having a railway head in the oil terminal to service trains that then travel to where they are needed, carrying what would be the equivalent of several fuel tankers worth of product to its point of consumption?

I have previously wondered about the economics of having another branch run up to Murchison or even go to Nelson. Whilst this would be a significant undertaking, it could be partially paid for by enabling freight trains to run between Nelson and Westport. Nelson currently has no railway access. Logging of plantations is a significant business in Nelson and the northern West Coast region, and some of the roads are not really designed for logging trucks, so a railway would provide an alternative transport option.

Just a few thoughts. Let me know what you think of them.

 

 

Lowering speed limit might not save lives


Yesterday, the Government acknowledged it was looking at lowering the speed limit to 70km/h on some roads. Whilst delighting road safety campaigners, the usual critics have sprung up. Some of their points are valid, but some are simply attacking a Government with an apparently bold plan for N.Z. transport.

There are a range of reasons why lowering the speed limit will not save lives:

  1. A lot of crashes happen as a result of bad decisions – such as turning in front of an on coming car; failing to give way; running red lights
  2. Crashes also happen because people too often do not drive to the conditions and ignore the rules set down in the road code – a person is supposed to be 2 seconds driving time behind the person in front, which becomes 4 seconds in foggy or wet conditions; fail to use lights appropriately in dark, or otherwise poor visibility
  3. Still too many people electing to drive drunk despite common public awareness of the problem and the strong negative reaction to anyone being caught drunk – how many of you have had to stop a person from driving drunk?
  4. Driver attitudes are a major concern – a failure to wear seatbelts; drivers running from cops; letting minors or unlicenced people behind the wheel – and need to change

As a mate at the pub said awhile back, “you cannot fix stupid, Rob”. It was not a reference to the road toll, but people have to accept responsibility for a significant portion of the crashes that happen. Some, such as an elderly driver perhaps backing into someones fence will be purely accidental – they would not have meant to do it and might well have confused the gears or hit the accelerator instead of the brake.

Where in the preceding four reasons did I mention the word “speed”, or the phrases “driving too fast” and “speed limit”?

I deliberately do no mention speed in the reasons, because although it is definitely an issue and one that contributes its share to the road toll, it is a well publicized one. Regular campaigns by the Police aimed at slowing people down feature graphic ads. Speed cameras catch a lot of people, but it is meaningless unless the payment of the fines is better enforced than it currently is.

But do they actually save lives or are they a revenue making gimmick for an underfunded Police force? I believe there is a bit of both. I also believe though that if the Police have a crack down, it should not be announced – it defeats the purpose and the offenders that they want to catch in the act, behave well for the duration and then go back to their normal routines as soon as it is over.

Perhaps there is merit in reducing speed limits on semi rural road, but this will only work if the limit is rigorously enforced. It will only work if human attitudes change. Whilst attitudes remain what they are, a lower death toll will remain being something to dream about.

Labour Government releases transport spending priorities


Yesterday marked a significant step forward for New Zealand’s economy and transport. After years being campaigned for by the Greens, Minister of Transport Julie Anne Genter announced that the Government was ready to release a draft Government Policy Statement on transport.

The key highlights of this major announcement are:

  • $11.7 billion for public transport
  • $1.1 billion for pedestrian and cycling infrastructure
  • $6.1 billion for regional and local roads

This is a great start to addressing the waylaid priorities of New Zealand’s transport needs. I look forward to the opportunity in the next few weeks to lay down more formal thoughts in a submission to the draft Government Policy Statement that has been released by Ms Genter, and her New Zealand and Labour colleagues Shane Jones and Phil Twyford.

For years I have been pushing for a much bigger investment in railways, the merchant marine and to a bit lesser extent, public transport. Many of the points on which I campaigned look like they will be addressed in this.

There is however one significant question. For all the great announcements that come out of this draft Government Policy Statement release, I have one niggling question:

What sort of investment is going to happen around merchant marine? We are a maritime nation. It is saying something that one of the major modes of transport is not being given the due investment that is needed to reduece congestion on our roads and help take some of the pressure off the easter South Island where quake damage is still being fixed.

No one should be surprised that there is a fuel tax coming. Especially seeing as the Government did not make specific tax announcements at the election, where people were expecting something to happen. Not surprisingly, the right are out in force talking about how no one can afford the proposed petrol tax. This is the same right that spent $12 billion of N.Z. taxpayer money funding “Roads of National Significance”, which were in several cases completely meaningless¬† and more about appeasing the trucking and private users lobby.