Monday, October 5, 2009

Rail or Road

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The debate on this important decision has yet to consider the inevitability of the rising cost of petrol, reducing vehicle use and petrol tax revenue.

Smaller electrical vehicles with a limited range are only a few years away. All this will happen. The global recession has delayed this from occurring and New Zealand has yet to feel the impact or to notice global change.

Within five years world oil production will peak. More oil fields will come on stream but they will not be the size of existing fields and oil will not be as easy to extract .Oil prices will rise

Hybrid cars will become more popular however they are only an interim solution.

Global automobile companies are developing electric cars .Britain and other nations are developing electrical recharging stops they also charge higher registrations for larger cars. New Zealand is not even considering these changes

We know from recent experience people vote with their feet and use public transport when petrol prices increase.

Our advantage is cheap hydro, geothermal some wind and solar power. Electricity is the fuel of the future so

this is where our investments should lie.