Fuel tax drop helps but not enough

Monte Cecilia Housing Trust chief executive Bernie Smith has welcomed the Government’s move to reduce fuel taxes for a time, but he thinks more can be done to help people.  

 

 

Mr Smith’s comment came a week after he pushed back on Prime Minister Jacinda Ardern’s statements on March 7, that, while rising living costs were having an impact, she wouldn’t describe the situation as a crisis. 

On March 14, Ms Ardern admitted that the cost of living was affecting people, and the Government responded by addressing fuel tax, cutting road-user charges, and reducing public transport fares by half. 

“We’re very happy to hear the Government’s announcements around reducing fuel taxes temporarily – it will provide much-needed relief for a lot of families who are struggling right now,” Mr Smith said.  

“However, it’s important to remember that, compared to four and a half years ago, the Government is currently taking in an additional 55.3 cents per litre, generating an extra $1.5 billion in revenue each year. They really could have offered a 50 cents per litre reduction, which would have been more meaningful.” 

In his earlier comments, Mr Smith stated that there certainly is a cost of living crisis. 

“From Monte Cecilia’s perspective, we’re working with hundreds of families every day who were already struggling to keep a roof over their children’s heads and food in their bellies, who are now being pushed well past the line. If that’s not a crisis, I don’t know what you’d call it,” he said. 

“Between rent, food, fuel and other basic necessities, families are expected to somehow find thousands of dollars extra a year to cover the rising costs. That’s a tough blow for those of us who are doing ok, but for families who were already struggling it’s crushing.” 

Monte Cecilia, which is based in Mangere, Auckland, had to stop taking referrals earlier in the year after its waitlist grew to almost 400 families, and the Government restricted its ability to contract new homes from landlords.  

“The level of need in our communities right now is staggering, and it’s a gut punch each time we have to tell a family that we’re not able to help them right now,” Mr Smith said. 

“If we as a country don’t do something urgently, the number of families in serious need, and the severity of that need, is only going to continue to grow.” 

Mr Smith acknowledged that much of the current cost of living pain is being driven by events happening internationally, such as Covid and the war in Ukraine, but he said that isn’t a reason not to act.  

“It doesn’t matter that the cause is global because this isn’t about handing out blame – what matters is what we’re doing to help our most vulnerable families,” he said.  

“Prime Minister Ardern has said that she expects things to improve over the course of the year and I hope she’s right, I really do, but families are being forced into poverty right now. We can’t afford to sit still and hope the situation improves – we need to act.”