Government to introduce congestion charging

Monday, 12 August 2024

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The Government will introduce a bill this year to bring in “time of use” charges in an effort to cut road congestion, Transport Minister Simeon Brown has announced on Monday.

The scheme will see drivers who are on the road at certain times and in certain locations having to pay tolls.

Brown said the move would encourage drivers to “change their travel habits” and reduce numbers on the road.

“Faster, more reliable travel times will increase productivity, and lower costs for businesses and their customers. That is why we are enabling time of use schemes to be put in place,” he said on Monday.

NZ Transport Agency will design the schemes alongside local councils, whose job it will be to put forward proposals for their regions.

Brown said the transport agency would “provide strong oversight and … ensure motorists benefit from these schemes”.

Money raised from tolls will be invested back into transport infrastructure, Brown said.

“Councils will not be able to spend this money on other priorities or pet projects.”

A bill is expected to be introduced by the end of the year, and legislation is hoped to be passed in 2025, but charges are not likely to be in place for a year or more after that.

“Auckland has long been considered a leading candidate for a time of use charging scheme, and the Government will prioritise working with Auckland Council,” Brown said.

“Auckland is grappling with pressing productivity challenges that demand effective solutions. By enabling time of use schemes to be implemented, we are addressing these challenges head-on, providing our heavily congested city with faster and more reliable journeys.”

Infrastructure New Zealand, a leading organisation for the infrastructure sector, backed the scheme, saying it would help “unlock the potential of our cities”.

“The current state of our land transport network, which is slowing everyone down, is a drag on our economic productivity and contributes to the dislocation of our communities,” said chief executive Nick Leggett.

“Congestion charging can make an important contribution to decongestion and help unlock the economic and social potential of our major cities. It is a common feature of well-functioning urban transport networks overseas.”

Transporting New Zealand, which represents the road freight transport industry, also welcomed the announcement.

But interim chief executive Dom Kalasih said he hoped the Government would consider excluding freight operators from the charges.

“All the travel our operators do is vital. We don’t travel anywhere unless we have to, and what we have to do is get goods picked up and delivered as efficiently as possible.”

Shanan Halbert, Labour’s spokesperson on Auckland issues, criticised the idea, saying when the city is calling for leadership, “Simeon Brown has put his hand out for more cash from whānau in Tāmaki Makaurau”.

“While in opposition, Simeon Brown said, ‘We want to make sure that we’re not adding further cost to people using the roads at a time of cost-of-living crisis’. Yet here he is, doing the very thing he was so against.”