Cabinet has agreed to allow councils to introduce congestion charges, with legislation to be introduced this year, Transport Minister Simeon Brown says.
He says councils will be able to apply to introduce such time-of-use schemes - with Auckland Council the top priority. The move was a commitment in the ACT coalition agreement.
The minister said the schemes will reduce travel times on the busiest roads and boost economic growth.
"Congestion is a tax on your time, and on productivity. It means that we are away from home for longer sitting in gridlock, and it results in fewer jobs being done, fewer deliveries, and delays to services across the city," he said.
The Transport Agency, Waka Kotahi would work with the local councils to develop individual time-of-use charging schemes, he said, working out costs and the most efficient movement of traffic for each city or region.
"This is an enabling piece of legislation. Councils put forward the proposal, NZTA will then work in partnership as a majority partner ... to make sure that it looks at network efficiencies - so not just one part of the network but overall network efficiency - and then there's going to be rigorous oversight as well."
He said public acceptability would be key, and it would take a couple of years before the first scheme was fully in place. He said he would not give a timeframe at this point, nor would he set down a specific range of possible charges.
The legislation would go through a full select committee process, giving the public the opportunity to make submissions.
"We want to take the time to get this right so that we can make this fundamental significant difference for New Zealand," Brown said.
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Any charges would not be about drumming up revenue, Brown said, with all money raised required to be invested back into transport infrastructure.
It was about efficiency of the network, and allowing people to get more easily around their town or city.
"If you're a concrete truck driver and you are sitting in congestion and you're only able to do two trips a day, the additional revenue you're able to make as a business from doign three or four trips far outweigh the small charge you may have to make.
"That's what all the modelling says ... If you're a tradie getting around Auckland and trying to get more jobs in, this is going to be good for you."
He said councils and the government would need to work with the public to make the schemes robust and enduring.
"We need to make sure that we take the public with us on this journey. It's all very well for transport experts to sit around a room and say 'this is how it's going to work and isn't this amazing' but actually we need to make sure we have a really good conversation and discussion," he said.
"I'm more focused at this stage on making sure we get the policy right."
He confirmed the government would be signing off on each individual scheme.
"We see Auckland as being the number one ... once that legislation's in Parliament then we'll start having more rigorous conversations."
Transport Minister Simeon Brown. Photo: RNZ / Reece Baker
"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."
The charges were not a stand alone solution to managing congestion and Roads of National Significance as well as major public transport projects would continue to be prioritised, he said.
In a statement, Labour's Auckland issues spokesperson Shanan Halbert said Aucklanders wanted better transport, not more tax.
He pointed to Brown having previously opposed congestion charging, saying he did not want to add further cost to people using the roads during a cost-of-living crisis.
"In government, Labour did the groundwork on this policy and sought bipartisan support, which National declined when we wouldn't remove the fuel tax," Halbert said.
"We know that Aucklanders need better options for transport, but all we have seen from a $1.2 billion hole in the city's infrastructure fund after the fuel tax has been removed, and 6.8 percent rates rise to cover the costs of water."
Halbert said international research showed congestion charges only worked if there were viable, affordable alternatives but National had not invested in things which would help get people out of cars.
"The congestion charges are nothing but a revenue generating exercise for the government. A third of New Zealand calls Auckland home and the city should be thriving, but instead we're footing the bill for this government's poor decisions."
