Auckland congestion charge: Drivers could be taxed $3.50 to enter central city at peak hour

Monday, 30 November 2020

A congestion charge of up to $3.50 has been suggested by officials for the Auckland CBD.(Video August 2021)

A congestion charge of $3.50 to enter Auckland’s central city at peak times could happen within three years under a scheme unveiled by officials.

A joint government-council group said the inner-city cordon could be the first stage of wider road charging in Auckland that could reduce traffic volumes by 8-12 per cent – a fall similar to school holiday levels.

Four years of work has produced a detailed proposal focused on reducing traffic and pollution, as a basis for public discussion and political support.

It is hoped a congestion charge would encourage people to ditch their cars but there are concerns those who are less well off could be hit hard.

Auckland mayor Phil Goff has given the proposal his “qualified support”.

* Auckland toll road proposal to be revealed, but critics say poor will suffer

* Auckland congestion charge: City's next political hot potato is already baked

Officials said congestion charging should follow the completion of Auckland’s downtown rail tunnels, the City Rail Link.

“I acknowledge that in order to do it, you need to persuade the wider public it is an efficient and proper way of controlling congestion and building revenue,” Goff told Stuff.

“While congestion charging is just one tool in a larger toolbox, it is still important for creating an efficient and integrated transport system,” said Auckland Transport chair Adrienne Young-Cooper.

The first phase proposed a cordon around the inner city, similar to one introduced in Swedish capital Stockholm, that would be free to cross off-peak but cost up to $3.50 6am-9.30am and 3.30pm-7pm.

Number plate recognition technology, such as that used on tolled highways, would trigger charges to a user’s account.

Officials recommended starting the rollout around the time major city centre public transport improvements such as the $4.5 billion City Rail Link are completed, scheduled for 2024.

A proposed central city cordon could cost $3.50 to cross in peak times, in a congestion charge proposal.

The report, released on Monday, also signalled more work was needed on easing the financial burden on less-well-off motorists, suggesting discounts to those on Community Service Cards as one option.

The inner-city cordon was seen as a low cost, low-risk first step towards a more wide-ranging scheme that might cover main roads across the Auckland region.

The cordon could cost $46 million to set up and $10 million a year to run, bringing in $20 million in revenue.

Officials said any net surplus from congestion charging should go to public transport infrastructure.

The region-wide road option could cost $185 million to set up, $87 million to run annually and generate $223 million.

If either option replaced the current Auckland regional fuel tax, about $150 million a year in that revenue would be lost.

The central city cordon was the approach taken in Stockholm, which conducted a six-month trial in 2006, then a public referendum before becoming permanent in 2007.

The officials’ report said there was an immediate and sustained 20 per cent drop in traffic, with public transport use up 4-5 per cent, and a doubling in public support over five years to 70 per cent.

Officials had tried to assess the social impact on the less well-off and saw little effect from the central city cordon, partly due to good public transport options, but they said expanding it to strategic roads would hit more people.

“What we need is a decision to move ahead,” Matt Lowrie, the editor of the transport-focused website greaterauckland.co.nz, told Stuff.

“It is going to take at least 2-3 years to roll out so timing that around the City Rail Link would make sense, so we can get more certainty around what is going to happen, rather than talk about it for the next decade or more,” said Lowrie.

The Automobile Association’s Barney Irvine called the report a compelling case but one that first needed to be sold to the public.

“Sure, the politicians have to say: we are interested and we see benefit for Auckland in this; but the decision has to be made by the public and that will need a really meaningful engagement process,” Irvine told Stuff.

Auckland Business Chamber CEO Michael Barnett said big cities around the world had all successfully introduced congestion charges, and so could Auckland.

“We’ve talked and talked about the problem and now there is a workable solution, proven models to follow and a willingness to try it. Let’s get on and finally make a decision and introduce a user-pays charge,” Barnett said.

“The aim must be to ease the congestion around the city that costs freight forwarders, exporters and commuters thousands of dollars and thousands of hours in lost productivity each year as they crawl through town during peak hours,” he said.

“Reducing traffic volumes during weekdays at peak times in the central city will not only benefit the liveability of our city but its workability and lift productivity.”

The downtown business promotion agency Heart of the City was wary about the scheme at a time when the central city is already suffering a business slump from Covid-19.

“It is important this is not seen as another imminent change, that would keep people away from the city centre – that is what I am concerned about, how this debate is framed,” a spokeswoman said.

The road freight industry has not been part of the detailed work so far but the National Road Carriers Association said it might support higher charges if there were gains through shorter journey times.

“Puhoi [the northern gateway toll road] is a good example: they have not overcharged and there are gains in productivity and efficiency, so depending on what level of charge it is going to be, we will see if that actually works,” said its chief executive, David Aitken.

The first political debate around the proposal will happen on Thursday when it is presented to Auckland Council’s planning committee.