Pay as you go road usage

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The New Zealand Government plans to unveil legislation by year-end aimed at implementing time of use schemes designed to reduce traffic congestion on major roads and enhance economic growth, according to Transport Minister Simeon Brown.
Brown believes that congestion incurs a “tax on time and productivity,” leading to inefficiencies in job completion and service delivery. “Faster, more reliable travel times will increase productivity and lower costs for businesses and their customers,” he stated.

The proposed schemes will improve network efficiency, allowing Kiwis and freight to travel more quickly and safely. The Cabinet has approved a framework that empowers local councils to create their own time of use proposals. The New Zealand Transport Agency (NZTA) will collaborate with councils to ensure the effective design and oversight of these schemes, which will require government approval.

The legislation mandates that any revenue generated from time of use charges must be reinvested into regional transport infrastructure, preventing misuse for unrelated projects. Auckland is identified as a primary candidate for implementing such schemes, with the government committed to collaborating closely with Auckland Council to tackle pressing productivity challenges.

While time of use schemes aim to manage congestion, the government continues to prioritise new infrastructure projects and public transport improvements to further enhance travel efficiency across the country. The anticipated bill will be presented to Parliament soon, allowing for public submissions once it reaches the select committee stage.

 

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