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Road Freight Association Backs Time Of Use Charging Bill, But Flags Cost Concerns

Road Freight Association Backs Time Of Use Charging Bill, But Flags Cost Concerns

Scoop30-04-2025

National road freight association Transporting New Zealand has backed congestion charging legislation, but says that amendments are necessary to maximise savings for consumers and businesses.
In its 27 April submission to the Transport and Infrastructure Select Committee, Transporting New Zealand has proposed four improvements to the draft legislation that would help maximise network efficiency and incentivise buy-in from the road freight sector and their customers:
1. Exempting freight and public transport vehicles from liability to pay time of use charges.
2. Charging light and heavy vehicles at the same rate, rather than penalising larger, more efficient vehicles.
3. Requiring time of use charging scheme assessments to include the expected impacts on the supply chain and freight movement.
4. Allowing short-term trials ahead of confirming a time of use charging scheme proposal.
Transporting New Zealand Head of Policy & Advocacy Billy Clemens says that these recommendations reflect the fact that road freight demand is inflexible - driven by customers' 'capacity to receive'.
"We know from international experience that congestion charges do not result in material changes in freight vehicles travelling at peak times.
"Without appropriate protections in the legislation, congestion charges act as unavoidable taxes on freight operators, raising costs for businesses and consumers without meaningfully improving traffic gridlock.
"Our members don't want to have to pass these charges onto their customers, and deal with the associated administration costs.
Clemens said that congestion charging was a contentious issue in the road freight industry, with a diverse range of views being captured in their 2025 Road Freight Survey, due to be released tomorrow (1 May 2025).
"42 per cent of road freight operators surveyed in the 2025 Road Freight Survey stated they supported or strongly supported the use of congestion charging, 23 per cent were neutral and 32 per cent disagreed or strongly disagreed. The remaining 3 per cent indicated they were unsure.
"78 per cent of operators agreed that road freight should be exempt from congestion charging, with 16 per cent being neutral and 6 per cent disagreeing.
Transporting New Zealand had also reviewed the submission of Auckland Council, and agreed with their statement that time of use charging must work for Auckland, as the city most likely to put in place a time of use charging scheme.
"The Council has made some important points around governance and revenue provisions, and complementary measures such as public transport improvements. We hope the Committee will give them careful consideration so we get workable legislation passed."

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Auckland homeowners, try not to freak out about your new CV
Auckland homeowners, try not to freak out about your new CV

The Spinoff

time20 hours ago

  • The Spinoff

Auckland homeowners, try not to freak out about your new CV

Updated Auckland property valuations are out today, and I'll bet yours is down. Here's why you shouldn't freak out. First of all, if it makes you feel any better, the CV of my itty-bitty first home is down by a third. Have I shat my pants? No. Am I crying? Also no. I do feel a little less flash, but I always knew that me being anything other than a scrappy gremlin was an illusion. I could say something lovely and heartwarming about it still being a home where my heart is, but I am not that stupid. I know what property is in this country, and particularly in this city – for those lucky enough to have it, it's likely our biggest financial investment. I for one cannot count my 1998 Toyota Corolla as a comparable asset and I am counting on one day cashing in my house to move somewhere nice and small by the seaside. So why am I not freaking out about a loss that on paper, looks like almost a decade of saving every cent from a full-time job? Let's start at the beginning. Where is my CV? You can check your CV (and your neighbours' CVs, your friends' CVs, etc) online here. On average, residential CVs have dropped by 9% across Auckland, though this varies from suburb to suburb – Aotea Great Barrier Island has seen huge increases and suburbs near the central city are generally where drops are. What even is a CV? CV stands for capital value. It's assessed by independent valuation providers who work closely with the council. It's an estimate of what a property would have sold for at a certain date, based on property market trends and recent sales activity. Every three years, property values are assessed. In the case of the CVs which have come out today, that date is May 1, 2024 (they have been delayed by months and months). Why have CVs dropped? The CVs that have just been swept away like old cobwebs were based on data from June 1, 2021 – very near the property market peak. There were record low interest rates for mortgages and lots of pressure in the market. It should be no surprise to anyone that since then the economy and the property market have, erm, not improved. During Monday's media briefing, Auckland Council chief economist Gary Blick said that the previous two valuations had been taken at markedly different stages of the economic cycle compared to the latest, which has been taken at a time of high mortgage interest rates and a cool property market. ' The recent economic cycle – with its unusually steep climb and fall – helps explain why some properties have had swings between the two rating valuations,' he said. How are CVs calculated? Today, the CVs for 630,000 properties were released. That is far too many to calculate one by one. Instead, standard methods are used to calculate many properties at once. Valuers look at the sale prices of similar properties in the same area then apply this data like a blanket. For example, the CVs of renovated villas in Grey Lynn will be aligned with the sales of renovated villas in Grey Lynn. 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Auckland's new property valuations released: Check your CV today
Auckland's new property valuations released: Check your CV today

1News

timea day ago

  • 1News

Auckland's new property valuations released: Check your CV today

Auckland homeowners checking their latest council valuations, released this morning, might be surprised to see their properties are now valued 9% less on average. The new rating valuations were released on the Auckland Council website while formal notices will be posted or emailed to ratepayers from Friday. Based on property market trends in May 2024, the figures show variations across property types and locations throughout the region, with industrial, lifestyle, and rural properties bucking the downward valuation trend. The valuations are not intended to accurately reflect current market value but are used to determine how the city's rates burden is shared among property owners. It comes as the council prepares to roll out a 5.8% average rates increase from July. Properties whose values decreased by less than the 9% average will likely face higher-than-average rate increases. ADVERTISEMENT Auckland Council building (file image). (Source: 1News) "If your residential property value has reduced more than the average (-9%) change between the two valuations, you can expect a smaller rates increase than the 5.8%," said Auckland Council chief financial officer Ross Tucker. The overall capital value movements between the 2021 and 2024 valuations show industrial properties increased 5%, while commercial properties fell 5%. Lifestyle and rural properties both increased by 4%. Properties closer to Auckland's central business district generally experienced larger value decreases, with Albert-Eden, Maungakiekie-Tāmaki, Waitematā, Whau and Puketāpapa areas all seeing drops of 13 to 14%. But, values in areas further from the city centre held up better, with Hibiscus and Bays, Upper Harbour and Franklin experiencing smaller decreases between 1 and 4%. Auckland skyline with harbour bridge visible (file image). (Source: ADVERTISEMENT Auckland Council chief economist Gary Blick explained the context behind the shifts. "At the time of the 2021 rating valuation in June 2021, the official cash rate had been at an all-time low," he said. "We saw exceptionally low mortgage rates and strong upward pressure on property prices. The 2021 rating valuation reflected those higher prices. "In contrast, the 2024 rating valuation in May 2024, occurred when the OCR had been lifted to its recent high of 5.5%. Higher interest rates cooled buyer demand, leading to a decline in property prices. "Despite that fall, the median house price as at May 2024 was still above the level just prior to the OCR cut of March 2020, and that remains the case today. The morning's headlines in 90 seconds, including new corruption report, California protests, and Justin Baldoni's legal loss. (Source: 1News) "The recent economic cycle – with its unusually steep climb and fall – helps explain why some properties have had swings between the two rating valuations." Tucker said most Auckland ratepayers will see some degree of rates increase from July 1, with the average annual rates for a residential property valued at $1.29 million set to be $4069 – an increase of $223 per year or about $4.30 weekly. The valuations do not change how much the council takes in rates, as this is set annually following community consultation. For the upcoming financial year, Auckland Council has approved an overall average rates increase of 5.8% for residential ratepayers.

How Auckland ratepayers can learn their new property valuations today
How Auckland ratepayers can learn their new property valuations today

RNZ News

timea day ago

  • RNZ News

How Auckland ratepayers can learn their new property valuations today

An aerial view of an Auckland suburb showing many blocks of housing. Photo: RNZ / Kate Newton Auckland ratepayers can learn their new property valuations this week. Auckland Council will release the rating valuations for Auckland's 630,000 properties online from Tuesday, while ratepayers will be sent formal notices from Friday. You can check your valuation here . Monday's valuation data showed residential values have fallen nine percent since the last CVs were unveiled in 2021. Auckland Council chief financial officer Ross Tucker said the rating valuations are based on property market trends and recent sales activity as at 1 May, 2024. "As we know, the last council valuations from 1 June, 2021 were completed close to the market peak and between then and May 2024 the economy and property market generally trended down. "Therefore, as most people would expect, the May 2024 Capital Values (CVs) are lower than the previous 2021 CVs for many properties," Tucker said. He said for 2025/2026, Auckland Council has approved an overall average rates increase of 5.8 percent for residential ratepayers Auckland Council chief financial officer Ross Tucker. Photo: RNZ/Calvin Samuel This means annual rates for an average residential property (CV $1.29 million) will be $4,069. The 5.8 percent average increase for 2025/2026 will equate to $223 per year or around $4.30 per week. "We are acutely aware of the tough cost of living facing our community and we continue to work hard to achieve council savings and improve value for ratepayers, to help keep rates as low as possible," Tucker said. "Most Auckland ratepayers will see some degree of rates increase from 1 July, 2025. However, how a residential property's CV changes compares to other properties in the region will generally determine whether that property's rates increase from 1 July is more, or less, than the 5.8 percent average. "If your residential property value has reduced more than the average (-9 percent) change between the two valuations, you can expect a smaller rates increase than the 5.8 percent. Conversely, if your property value held up better than the average, then you can expect a larger rates increase." During Monday's media briefing, Auckland Council said residential properties in centrally located local board areas tended to see a bigger reduction than those further out, particularly apartment dwellings which had fallen 12 percent. Properties closer to the city centre by in large had above-average reductions like Puketāpapa, Albert-Eden, Maungakiekie-Tāmaki, Waitematā and Whau (all -14 or -13 percent). Auckland Council said this could be influenced by the varied market, including apartments, multi-units and stand-alone homes, which all have different sales trends. For many residential properties, land values had fallen an average of -13 percent and commercial land is also down -6 percent. The reduction in land values reflects reduced development activity since 2021 and, in some cases, potential zoning changes. Reduced demand for properties with redevelopment potential contributed to larger value declines in areas like Māngere, Henderson, Massey, Glen Innes, Point England and Panmure. Values for areas further from the city centre held up slightly better with Hibiscus & Bays, Upper Harbour and Franklin ranging from -4 percent to -1 percent. Commercial values were also down 5 percent, while lifestyle and rural increased by 4 percent, industrial was also up 5 percent. Auckland Council chief economist Gary Blick. Photo: RNZ/Calvin Samuel Council said it was also difficult to quantify the overall effect of the 2023 Auckland flooding event on the market due to the number of variables involved. Despite that, data shows that values in Muriwai increased by 12 percent while values in Henderson fell by 10 percent. Rodney held its values (average 0 percent change) and Aotea Great Barrier is up (+38 percent) which Auckland Council said is a continuing trend, with residential values on Aotea Great Barrier up 59 percent at the 2021 revaluation. Auckland Council chief economist Gary Blick said it was important to highlight that the previous two Auckland rating valuations coincided with markedly different stages of the recent economic cycle. "At the time of the 2021 rating valuation, in June 2021, the Official Cash Rate (OCR) had been at an all-time low," says Mr Blick. "We saw exceptionally low mortgage rates and strong upward pressure on property prices. The 2021 rating valuation reflected those higher prices. "In contrast, the 2024 rating valuation in May 2024, occurred when the OCR had been lifted to its recent high of 5.5 per cent. Higher interest rates cooled buyer demand, leading to a decline in property prices. "Despite that fall, the median house price as at May 2024 was still above the level just prior to the OCR cut of March 2020, and that remains the case today. The recent economic cycle - with its unusually steep climb and fall - helps explain why some properties have had swings between the two rating valuations." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

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