Motorists may soon have to pay congestion charges for busy roads

Councils will be able to charge motorists to use roads, including higher fees during peak periods, under legislation the Government plans to introduce before the end of this year.

Transport Minister Simeon Brown said the cabinet had agreed to a legislative framework that would allow local councils to propose ‘time-of-use schemes’ on their road networks.

Charging higher fees at peak periods would incentivise motorists to drive at other times of the day, which would potentially reduce travel times on our busiest roads.

“Congestion is a tax on time and productivity. It means that we are away from home for longer, sitting in gridlock. It results in fewer jobs being done, fewer goods being moved and delays to services across the city,” Minister Brown said.

“Time-of-use schemes will improve network efficiency to increase productivity and enable Kiwis and freight to get where they need to go quickly and safely. It is not about raising revenue.”

Under the planned legislation, councils could propose time-of-use schemes in their region. The NZ Transport Agency would lead the design of the schemes to provide strong oversight and ensure motorists benefitted. All schemes would require approval from the Government.

“Time-of-use schemes will need to consider the impacts on motorists and businesses that use the roads that fall within the charging areas, as well as the impacts on the wider network,” Minister Brown said. 

“Any money collected through time-of-use charging will also be required to be invested back into transport infrastructure that benefits Kiwis 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.”

The Government will prioritise working with Auckland Council, as Auckland has long been considered a leading candidate for a time-of-use scheme.

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