Transport Minister Simeon Brown has announced that the government has agreed to allow councils to introduce congestion charging, with legislation set to be passed later this year.

He says councils will be able to apply to introduce such time-of-use schemes – with Auckland Council being a top priority. The move was a commitment in the ACT coalition agreement.

The minister said these projects will reduce travel times on the busiest roads and stimulate economic growth.

“Congestion is a drain on your time and productivity. It means we’re out and about more, sitting in traffic, which means fewer jobs get done, fewer deliveries get done and delays to services across the city,” he said.

He said the Waka Kotahi Transport Agency would work with local councils to develop individual time-of-use charging schemes, establishing the costs and most effective way to manage traffic for each town or region.

“This is enabling legislation. The councils have put forward a proposal and then NZTA will work as a majority partner… to make sure that it looks at the performance of the network – so not just one part of the network but the overall performance of the network – and then there will be rigorous oversight as well.”

He said public acceptance would be key and that it would be several years before the first program was fully implemented. He said he did not provide a time frame at this point or set a specific range of possible charges.

The bill will have to go through a full selection committee process, giving the public an opportunity to submit comments.

“We want to take the time to get this right so we can make that fundamental, meaningful difference for New Zealand,” Brown said.

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Brown said none of the prosecutions would be intended to generate revenue and all money raised must be invested in transportation infrastructure.

It was about network efficiency and allowing people to move around their city more easily.

“If you’re a cement mixer driver and you’re stuck in traffic and you can only make two trips a day, the extra revenue you can generate as a business by making three or four trips far outweighs the small fee you might pay.

“That’s what all the models are saying… If you’re a professional moving around Auckland trying to get more jobs, this will be good for you.”

He added that councils and the Government will need to work with the public to make these schemes robust and sustainable.

“We need to make sure that we take the public along on this journey. It’s all very well that transportation experts sit in a room and say, ‘this is how it’s going to work and isn’t that amazing?’ but we really need to make sure that we have a really good conversation and discussion,” he said.

“At this stage, I’m more focused on making sure the policy is right.”

He confirmed that the government will approve each individual program.

“We believe Auckland is number one… once this legislation is in parliament we will start having more rigorous discussions.”

Transport Minister Simeon Brown.
Photo: RNZ / Reece Baker

“Time-of-use schemes will need to take into account the impact on drivers and businesses using roads within charging areas, as well as the impact on the wider network.

“Any money raised through user charges will also have to be invested back into transport infrastructure that benefits New Zealanders and businesses living and working in the region where the money was raised. Councils will not be able to spend this money on other priorities or pet projects.”

Charges are not a stand-alone solution to traffic congestion, and national roads and major public transport projects will continue to be prioritised, he added.

Labor’s Auckland issues spokeswoman Shanan Halbert said in a statement that Aucklanders want better transport, not higher taxes.

He recalled that Brown had previously opposed charging for entering the paid parking zone, saying he did not want to expose road users to additional costs at a time of living costs crisis.

“In government, Labor set the stage for this policy and sought bipartisan support that the National Party did not receive when we refused to remove the fuel tax,” Halbert said.

“We know Aucklanders need better transport options, but all we’ve seen is a $1.2 billion hole in the city’s infrastructure fund after the removal of fuel tax and a 6.8 per cent rate increase to cover water costs.”

Mr Halbert said international research had shown that congestion charging only worked when there were viable and affordable alternatives, and National had failed to invest in solutions that would encourage people to give up their cars.

“Congestion charging is nothing more than a way for the government to generate revenue. A third of New Zealanders call Auckland home and the city should be thriving, but instead we are footing the bill for this government’s poor decisions.”