Skip to main content

Auckland considers road user charging to plug funding shortfall

Auckland, New Zealand, faces a US$9.5 billion transport funding gap to build the fully-integrated transport network set out in the 30-year Auckland Plan that includes new roads, rail, ferries, busways, cycle-ways and supporting infrastructure needed to cope with a population set to hit 2.5 million in the next three decades. If Auckland opts to pay for the fully-integrated Auckland Plan, Auckland Council officials claim the transport network congestion is expected to improve by 20 per cent over the next 1
October 29, 2014 Read time: 2 mins
Auckland, New Zealand, faces a US$9.5 billion transport funding gap to build the fully-integrated transport network set out in the 30-year Auckland Plan that includes new roads, rail, ferries, busways, cycle-ways and supporting infrastructure needed to cope with a population set to hit 2.5 million in the next three decades.

If Auckland opts to pay for the fully-integrated Auckland Plan, Auckland Council officials claim the transport network congestion is expected to improve by 20 per cent over the next 10 years compared with where the city’s traffic problems are currently heading.

The higher level of transport performance will also deliver economic benefits to the Auckland region of US$1.3 billion in improved productivity and reduced costs.

An Independent Advisory Body (IAB) has worked out two ways Auckland could fund the fully-integrated transport system. One way is agree to increase petrol price by 1.2 cents a litre (in addition to increases signalled by the government) and share the rest of the cost equally amongst ratepayers. This would mean an increase in average general rates of around one per cent per year, in addition to increases signalled by the council, over the next ten years.

The other suggestion is to charge the motorway users an average user fee of US$1.6 depending the time of day or day of the week they use the motorway.

The government has criticised the proposals, however.

Transport Minister Simon Bridges said he was "very sceptical" about the options presented today by an Independent Advisory Body (IAB) to the Auckland Council.

Bridges said the Government was already spending about US$794 million a year on Auckland's transport network. "These projects will make a big difference to congestion in Auckland," he said.

"But we remain very sceptical about the options being presented today to Aucklanders and whether the programme proposed will further alleviate congestion. Aucklanders would need a very clear sense of what results they are getting and whether the new projects would deliver tangible value for money for commuters. They also need to have the discussion about how much more Aucklanders are prepared to pay for their transport."

The council says no decision will be made without extensive consultation with residents, which commences in January 2015.

Related Content

  • UK Spending Review ‘increases capital investment in transport by 50%’
    November 26, 2015
    UK Chancellor George Osborne announced major investments in transport in the government’s Spending Review and Autumn Statement, despite a 37 per cent cut in the Department for Transport’s (DfT) operational budget. This was offset with a planned 50% per cent increase in capital expenditure for the DfT - rising to a total of US$92 billion. In addition to protecting overall police spending in line with inflation, an increase of US$1.3 billion by 2019-20, the review includes US$70 billion capital investment
  • First pan-London Car Club Action Plan launched
    May 21, 2015
    Around 85 per cent of UK car club members already based in London New plan will help reach new joint target of one million London car club members by 2025 Future growth of car clubs will help improve London’s air quality and reduce congestion in the Capital A new ‘strategy for car clubs’ in London has been launched today (21 May), to encourage residents and businesses across the capital to sign up to car club schemes as an alternative to direct car ownership. The new action plan, jointly developed b
  • User-based insurance joins the battle for big data
    November 10, 2015
    User-based insurance is blazing a trail others would like to follow and is also discovering the challenges. The ITS sector needs to keep a very careful eye on the automotive industry: “There’s a war going on in the connected car space creating richer datasets than we ever imagined possible” says Paul Stacy, research and development director of Wunelli, part of the LexisNexis group. The car makers have gone way beyond infotainment, unlocking huge amounts of data in the process … facts and figures which the i
  • New Zealand ponders tolling new major roads
    July 22, 2024
    Roads of National Significance may get alternative funding to speed their completion