Congestion charging just another cost for struggling ratepayers

RNZ News

29-04-2025

Projections showed Tauranga congestion would worsen unless there was a significant investment in infrastructure. Photo / George Novak
Photo:
George Novak
Congestion charging is a "dirty cash grab from central government", a Tauranga City Councillor claims.
Steve Morris made the comment on Monday as the council discussed its submission on the Government's Land Transport Management (Time of Use Charging) Amendment Bill.
The Bill would enable local authorities to work with the New Zealand Transport Agency to design schemes charging motorists to use roads in high-congestion zones in peak hours, for the Transport Minister's approval.
It is before Parliament's Transport and Infrastructure Committee for public submissions, with the Government intending to pass the legislation this year.
The council's draft submission said it supported the general intent of the bill, but some councillors opposed this position.
Morris said he was not convinced supporting time-of-use charging was in the best interest of residents.
"People are living week-to-week, paycheque-to-paycheque. We are in a cost-of-living crisis, and paying for time-of-use charging is just another naked, dirty cash grab from central government, in my view."
Morris said this was because it was not clear in the bill if the revenue from congestion charges on local roads would be used locally or elsewhere.
"This bill enables money to go into government coffers from our residents, some of whom are struggling."
Councillor Glen Crowther said the council should take a neutral position on congestion charging.
He said if it were introduced, alternative transport options had to be provided, meaning Government funding for public transport would be needed.
Councillor Rick Curach said congestion charging would be a "real burden" for people who did not have easy access to public transport.
He was concerned the government could impose time-of-use charges focused on revenue generation rather than congestion reduction.
Curach wanted assurances congestion reduction would be quantified by a percentage and that the charges would be removed if the target was not met.
Council principal strategic transport planner Sarah Dove said the bill was silent on congestion reduction targets, but this was probably because these would vary hugely between regions.
The bill was clear that the charges were to encourage better use of existing networks through congestion reduction, she said.
Councillor Rod Taylor said the council was only submitting on the legislation, and any discussion on whether Tauranga should implement congestion charging would come in the future.
Tauranga City Councillor Rod Taylor.
Photo:
David Hall / NZME
The council's submission requested local authorities be involved in any decision to proceed with a charging scheme, rather than a minister directing the New Zealand Transport Agency to make and implement that decision.
It asked that all revenue from the scheme be managed by the relevant local authority and used in the area of charging.
The submission was adopted by the councillors after the wording was changed to say the council acknowledges, rather than supports, the bill's intent.
The submission said projections showed without substantial investment in transport infrastructure, congestion in Tauranga could significantly worsen in the next decade.
The funding required for transport infrastructure over the next 20 years was estimated at $10 billion, with current funding estimates at $3.5b, leaving a $6.5b gap.
This shortfall has previously led to discussions about alternative funding mechanisms.
In March last year, the commissioners running Tauranga City Council scrapped plans to investigate congestion charging options after strong community opposition.
Of 1099 submissions in consultation, 81 percent had opposed congestion charging.
When the Bill passed its first reading in Parliament in March, Transport Minister Chris Bishop said it would reduce travel times, increase efficiency and help boost economic growth and productivity.
"Modelling shows that successful time-of-use charging - charging motorists to travel on certain roads at peak times - will encourage people to change the time or mode of travel, and could reduce congestion by up to 8-12 percent at peak times."
He said it required the transport agency to lead the design of schemes in partnership with councils, "enabling local solutions within a nationally consistent framework".
"The legislation is not about raising revenue but maximising the efficiency of the roading network.
"Any revenue that is collected will first be used to pay for the scheme's costs and then reinvested to improve transport in the region."
LDR is local body journalism co-funded by RNZ and NZ On Air.