New Zealand / Transport

Auckland may run out of money to implement congestion charging

11:19 am on 19 October 2024

Auckland may run out of money to work on bringing in congestion charging, even though the government really wants it.

The council and Auckland Transport are looking at four options for addressing a shortfall in government funding compared to what its long-term plan assumed.

At least two of the options would leave no funding available to implement so-called time-of-use or congestion charging.

A joint transport, resilience, and infrastructure committee debated the matter earlier in October, though Auckland Transport said no decisions had been made.

  • Read more: What you need to know about how congestion charging works
  • Cabinet in June agreed to introduce legislation this year to enable councils and the New Zealand Transport Agency to move ahead on congestion charging.

    The practice sees motorists charged a fee to drive on the busiest streets and during the busiest times.

    Alongside officials drafting the bill, the Auckland authorities have been investigating what a scheme could look like.

    However, its reports show that funding changes could put that work on hold.

    "No funding available to implement time of use programme," it listed among the impacts of options on a range of initiatives, from public transport to cycling.

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    "We have been continuing to work with Auckland Council to agree the level of their investment in our projects and operations over the next three years now that NZTA has made its funding decisions for the National Land Transport Programme," Auckland Transport told RNZ.

    "No decisions have been made as to funding on specific budgets, we expect more detail at the end of the month."

    Not just law changes, but new tech is required for congestion charging to work.

    The government had aimed for Auckland to adopt the scheme first, and it remains the top priority, once NZTA has got new $100m-plus technology system set up for it.

    In August, it said it was accelerating its plans for councils to be able to apply to introduce the charging case-by-case with NZTA.

    In the regions, congestion charging is one of several new financing tools the government has included in its new Regional Deals framework, to raise money aside from rates.

    Transport Minister Simeon Brown. Photo: RNZ / Reece Baker

    Transport Minister Simeon Brown has said it was not about revenue raising, but putting the fees raised back into road building and upkeep.

    RNZ has asked Brown how he would deliver on congestion charging if Auckland concluded it was unable to fund the preparatory work on it.

    Brown said Cabinet had agreed that the costs of establishing the scheme will be covered by the funds raised from it.

    "I do not expect Auckland Council to commit funding to develop a time-of-use scheme before a legislative framework is in place," he said.

    Officials said that once the new law was in place, "local authorities, including Auckland Council, will be able to propose schemes and work will be able to begin on scheme development. It will then take some time to implement charging schemes".

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