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

  • Auto-braking cars: government should meet motorists halfway
    March 25, 2014
    A UK Government incentive for drivers buying cars with anti-crash technology would save 60 lives and result in 760 fewer serious casualties reported to the police, in just three years. Over ten years, such an incentive would save 1,220 lives and nearly 136,000 casualties, according to Thatcham Research, the insurance industry’s automotive research centre. At a briefing seeking support from senior politicians, health organisations, insurers and vehicle manufacturers at the House of Commons today, Peter S
  • DfT consults on future of Highways Agency
    October 30, 2013
    Prior to turning the UK Highways Agency into a government-owned company, the Department for Transport (DfT) has launched a consultation asking for the public’s views on the proposed structure and accountability of the new company, along with input on how the new watchdog, and a separate new organisation that will monitor the performance of the agency, should be run. Turning the Highways Agency into a government-owned company will improve efficiency and reduce running costs, with taxpayers expected to ben
  • New vehicle technologies ‘could help reduce fatalities on European motorways’
    March 5, 2015
    New safety technologies could play a major role in reducing the numbers killed on European motorways, according to the European Transport Safety Council (ETSC), in a new report published today. The new analysis of developments in motorway safety shows that, despite recent progress, around 1,900 were killed on motorways in the EU in 2013. The report cites figures from several countries showing that up to 60 per cent of those killed in motorway collisions were not wearing a seatbelt. It calls on the EU to req
  • Mexico City seeks solutions to improve air quality
    December 6, 2017
    David Crawford ponders prospects for one of the world’s most congested and polluted cities. In 1992, the United Nations named Mexico City as the world’s most polluted urban centre. In the first half of 2016, following the updating of pollution alert limits to meet international standards, Mexico recorded 115 days where ozone concentrations exceeded the acute exposure health limit.