The New Zealand government today announced that legislation will be introduced next year to enable “time of use” charges to be imposed on busy roads.
Transport Minister Simeon Brown described congestion as “a tax on time and productivity.”
“It means that we are away from home for longer, sitting in gridlock. It results in fewer jobs being done, fewer goods being moved, and delays to services across the city. Faster, more reliable travel times will increase productivity and lower costs for businesses and their customers,” he said.
“Time of use schemes will improve network efficiency to increase productivity and enable Kiwis and freight to get where they need to go quickly and safely. It is not about raising revenue.”
The legislation would specify that the money collected by councils through time-of-use charging would be invested back into transport infrastructure.
Councils would propose projects, and New Zealand Transport Agency would lead the design of the scheme. All schemes will require approval from the government.
Councils Will Propose Their Own Schemes
Councils will also be responsible for proposing time-of-use schemes on their roading networks, empowered by a legislative framework to which the Cabinet has agreed.“Time of use schemes will need to consider the impacts on motorists and businesses that use the roads that fall within the charging areas, as well as the impacts on the wider network,” Brown said.
New Zealand’s largest city, Auckland, is likely to be among the first to adopt such a scheme, and the government says it will prioritise working with the Auckland Council.
“Auckland is grappling with pressing productivity challenges that demand effective solutions,” the minister said.
“Travel times per kilometre in Auckland are much higher than in comparable cities in Australia. Aucklanders are fed up with the gridlock that is plaguing our roads and making the city less accessible and productive.”
The government is also building new “roads of national significance” and major public transport projects.
It expects to introduce a bill to Parliament enabling time-of-use charging before the end of the year. The Bill will then go to a Select Committee for people to make a submission on the legislation.
