You may have heard of “congestion charging” but buckle up and brace for “time of use” schemes
The Government has announced it will soon introduce legislation allowing councils to charge drivers for using roads at certain times or locations, depending on how busy the road is.
That’s the way the news was reported by OneNews under the headline…
Govt to introduce congestion charge bill
Congestion charging we understand. It’s the art of slapping a surcharge on the users of public goods that can become subject to congestion because demand can be excessive at some times.
Wikipedia explains that higher peak charges can kick in to counter heavy demand in the use of bus services, electricity, metros, railways, telephones, and road pricing to reduce traffic congestion.
Airlines and shipping companies may be charged higher fees for slots at airports at busy times.
Advocates claim this pricing strategy regulates demand, making it possible to manage congestion without increasing supply.
But the Minister responsible for making today’s announcement preferred to bring another expression into play. The headline read…
Time of use schemes to reduce travel times
The Government would introduce legislation this year to enable “time of use schemes” to be developed to reduce travel times on our busiest roads “and boost economic growth,” Transport Minister Simeon Brown said.
Ah. Time-of-use schemes (it’s a compound adjective and hence should be hyphenated).
Brown did bring “congestion” into considerations.
“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.”
But he proceeded to explain that “enabling time of use schemes is a priority for our Government and a commitment under the National-ACT Coalition Agreement.”
And:
Cabinet has agreed to a legislative framework focused on seven key components that will enable local councils to propose time of use schemes on their networks.
The announcement is included in the latest batch of press statements to flow from the Beehive:
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In the statement which forewarns us about “time of use schemes” – in effect, let’s be blunt, a new form of tax – Simeon Brown said:
“Faster, more reliable travel times will increase productivity, and lower costs for businesses and their customers. That is why we are enabling time of use schemes to be put in place.”
A money-grabber for local bodies or for central government?
Don’t be silly.
“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.
“The schemes will be focused on increasing productivity and improving the efficiency of traffic flow in our cities.”
We feel abashed for harbouring other ideas.
“Local councils will propose schemes in their region, with the NZ Transport Agency (NZTA) leading the design of the schemes in partnership with councils to provide strong oversight and to ensure motorists benefit from these schemes.
“All schemes will 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.
“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.”
Auckland has long been considered a leading candidate for a time-of-use charging scheme, and the Government will prioritise working with Auckland Council.
“Auckland is grappling with pressing productivity challenges that demand effective solutions. By enabling time of use schemes to be implemented, we are addressing these challenges head-on, providing our heavily congested city with faster and more reliable journeys.
“Our Government is committed to working with Auckland Council to deliver a time of use charging framework that will improve travel times and network efficiency for Aucklanders.
“Travel times per kilometre in Auckland are much higher than in comparable cities in Australia. Aucklanders are fed up with the gridlock that is plaguing our roads and making the city less accessible and productive.
“Allowing businesses and tradies to be able to do more trips per day will mean more productivity on our roading networks, and a boost to our economy.”
But while time-of-use schemes will help manage congestion and increase productivity in our cities, it is not a standalone solution. Brown said
“That’s why the Government is continuing to prioritise new Roads of National Significance and major public transport projects to enable Kiwis and freight get to where they need to go, quickly and safely.”
The Government expects to introduce a bill to Parliament before the end of the year.
The Bill will then go to select committee where New Zealanders can make submissions on the legislation.
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
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