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

  • IAM calls for greater education for smart motorway users
    April 14, 2015
    As smart motorways reach their first birthday in the UK this week, the Institute of Advanced Motorists (IAM) has expressed concern that widespread confusion still exists amongst motorway users on how best to use them. Smart motorways were officially introduced this time last year to replace Managed Motorways as the solution to the nation’s congested motorways but concerns have been raised over their safety. England’s first all-lane running motorway, i.e. without a hard shoulder, opened on the 2.5 km
  • Road user charging potential solution to transportation problems
    December 14, 2012
    A number of new and highly significant open road tolling schemes have just been launched or are soon to ‘go live’. Systems of road user charging are flexing their muscles as the means to solve politically sensitive transportation problems, reports Jon Masters. Gothenburg, January 2013, will be the time and place for the launch of the next city congestion charging scheme in Europe. In a separate development, Los Angeles County’s tolled Metro ExpressLanes began operating in November 2012 – the latest in a ser
  • Florida ‘should consider mileage tax’
    April 22, 2013
    The concept of road users in Florida paying a mileage tax can no longer be considered a far fetched one. The statewide transportation advisory group Florida Metropolitan Planning Organisation Advisory Council (MPO) has asked the state legislature to start considering a system that requires individuals to pay for each mile driven. An earlier two-year MPO study to find a way to pay for the state’s future transportation needs found that, for the long-term, the state could no longer rely on a fuel tax, which c
  • How can US transportation be ‘re-envisioned’?
    October 17, 2019
    In her address to this year’s ITS America Annual Meeting, congresswoman Eleanor Holmes Norton, chair of the House Subcommittee on Highways and Transit, called for a ‘re-envisioning’ of transportation. Her speech is below – and ITS International asks a number of US experts what they would like to see ‘re-envisioned’…

    I would like to welcome  ITS America to the nation’s capital.