Congestion charging gets bipartisan support in Parliament

Tuesday, 4 March 2025

Congestion charging legislation has passed its first hurdle in Parliament with support from across the House.

The Land Transport Management (Time of Use Charging) Amendment Bill legislation, which could usher in “time of use” charging schemes in Auckland and elsewhere, was voted past its first reading by the National, ACT, NZ First, Labour and Green parties on Tuesday evening.

Te Pāti Māori was alone in opposing the bill, calling it a tax on low-income Māori.

Transport Minister Chris Bishop said congestion charging schemes were not revenue gathering tools, but would be “a bit controversial”.

“There will be a bit of public debate about it. But the experience from overseas is, it’s edgy when you first introduce it, but then as people experience and see the scheme working, and they see it’s easy to get to work in the morning … people come to accept it.”

Congestion charging schemes impose fees on drivers who use specified roads or highways during peak times, to encourage motorists to travel at different times, or take different forms of transport.

The legislation would insist that revenue gathered through a congestion charging scheme be used to first fund the scheme, and second be spent on improved roading, public transport, and cycling and walking.

Auckland Council and its mayor, Wayne Brown, has been advocating for the ability to erect a congestion charging scheme. On Tuesday, Auckland Transport published a report showing congestion cost the city $2.6 billion a year, as Aucklanders spent 29 million hours a year in congestion, costing them time, fuel, and wear and tear on vehicles.

Speaking in the House, Bishop said the Government was open to feedback about the legislation “but we do want to get on to it”.

“It is a really important move for New Zealand's future.”

Labour Party transport spokesperson Tangi Utikere said Labour would support the bill to the select committee stage. It remained possible the Opposition could vote against it at a later stage.

“I'm proud of the fact actually that in Government, Labour did do most, if not all, of the ground work around this policy, and in doing so, we also sought the bipartisan sort of support from across the aisle to bring this to fruition.

“It's unfortunate that that didn't happen at the time.”

However, he said the legislation contained a “stark ability” for the minister of transport to force a congestion charging scheme if it was believed to be necessary.

“I do think it is really important that this is a scheme that is developed in consultation and via direct leadership with local communities and local council.”

Green Party transport spokesperson Julie Anne Genter said her party had long advocated for congestion charging and would support it to the select committee stage.

She said the Government had made the legislation “far more centralised” than a prior Labour proposal, and this would be problematic.

“Our other concern with this legislation is that it doesn't, I don't think, sufficiently empower the municipal transport authority … really, these urban transport solutions need to be solved, they need to be managed at the level of the city. That's the level at which people are voting for them.”

Both NZ First and ACT supported the bill. NZ First MP Andy Foster said there would be places congestion charging “makes sense”, and others where it “would not cut the mustard and you wouldn't do it”.

Te Pāti Māori MP Takutai Tarsh Kemp said her party was voting against congestion charging as it “unfairly burdens our most vulnerable: whānau Māori, tangata moana, low-income workers”.

“They fail to acknowledge that the charge is a tax — on those who often have no other choice.

“It is our cleaners, our caregivers, our construction workers, many of whom are Māori and Pacific whānau, who will feel this the most.”

Parliament’s Transport and Infrastructure Committee will now consider the bill.