A new strategy to try to cut NZ’s dependence on oil to meet its transport needs could save the country $15bn over 20 years in fuel and vehicle expenses as well as social and economic benefits of reduced congestion, air pollution and greenhouse gases. The independent report, Managing Transport Challenges When Oil Prices Rise, was commissioned by NZ Transport Agency and recommends a major departure from the business as usual transport spending priorities.

Motorists Pay. The report calls for a fundamental shift in the Govt’s transport priorities away from building more roads toward investing in alternative transport and maintaining existing roads. It says most of the recommendations are low-cost and can be afforded within current land-transport budgets. It calls for motorists to pay more to drive cars - including more expensive car parks, and fees to use roads with the revenue raised used to help fund greater investment in public transport. The report also calls for tax breaks for fuel-efficient vehicles, laws requiring new developments to provide showers and lockers for walkers and bikers, improved urban design to make cities more cycle and pedestrian friendly as well as encouraging businesses to swap company cars for cash or bus subsidies.

Plan Could Be Unpopular. The report by transport consultants from McCormick Rankin Cagney and academics, was commissioned in response to high oil prices and despite recent falls in petrol prices predicts petrol will rise to $2.80 a litre by 2014. It claims the country is being particularly stung by rising prices because of its over-reliance on road transport. The authors acknowledge the recommendations may be unpopular with the public but say they will reduce dependence on oil so average consumers will spend almost the same on oil-based transport in 20 years as they do now, despite escalating fuel prices.

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