Prime Minister Chris Hipkins who is in Auckland today has confirmed the cut to the fuel excise tax and half-price public transport will be extended until the end of June.<\/p>\n
Half-price public transport and Road User Charge (RUC) reductions will also continue to the end of June.<\/p>\n
“These discounts were due to be phased out in the coming months but with global inflation pressure forecast to keep our rate around the 7 percent mark for longer, it’s important we keep providing support to families and businesses who need it,” Hipkins said.<\/p>\n
“This is a start – it’s a meaningful step in an ongoing series of measures to help with some of the most persistent cost pressures.”<\/p>\n
The subsidies were first introduced in March last year as a temporary measure, to help New Zealanders facing rising costs due to international fuel prices which spiked after the Russian invasion of Ukraine and other inflation pressures.<\/p>\n
Hipkins said the changes were a good candidate for early action because it was a major cost for nearly everybody and could be done quickly.<\/p>\n
“It’s also important for those experiencing the flooding here in Auckland which is putting extra stress and financial pressure on families. This policy alone won’t solve the cost-of-living crisis that we face but it will make a difference and right now I know that every little bit helps.”<\/p>\n
Asked what could be done to bring down food prices, Hipkins said today’s announcement would have an impact because it would stop prices rising further due to the cost off moving goods around.<\/p>\n
Finance Minister Grant Robertson who was also at the briefing said he took seriously Hipkins’ request to think about what could be done to reduce the cost of living.<\/p>\n
“Went away with the minister of transport and others and came back to the prime minister with this proposal. It’s important that we do as the prime minister’s just said – deal with the here and now as well as the long term.<\/p>\n
“When we think about what’s the best thing that we can do quickly, this is it.”<\/p>\n
Robertson said sufficient funding was found to be able to afford the extension and the government would take a look through the budget process at further ways to support New Zealanders with the cost of living.<\/p>\n
“We’ve got to strike a balance here … we want to make sure that we keep the fiscal picture strong, that we support monetary policy with our fiscal policy. We also want to make sure we support New Zealand families and households to be able to take the hard edges off the cost-of-living crisis.<\/p>\n
“Bear in mind this actually reduces the rate of CPI [the Consumer Price Index, one measure of inflation].”<\/p>\n