Govt to Introduce Legislation for Time of Use Schemes to Reduce Traffic Congestion

The proposed time of use schemes are designed to enhance network efficiency, enabling faster and safer travel for both people and freight.

The Government plans to introduce legislation this year to facilitate time of use schemes aimed at reducing travel times on busy roads and boosting economic growth, according to Transport Minister Simeon Brown.

“Congestion acts as a tax on time and productivity, causing prolonged delays and reducing the efficiency of our cities. This results in fewer jobs completed, goods delayed, and services disrupted,” Mr. Brown said. “Our goal is to implement time of use schemes that will improve travel efficiency and reduce costs for businesses and consumers.”

The proposed time of use schemes are designed to enhance network efficiency, enabling faster and safer travel for both people and freight. The focus is on productivity rather than generating revenue.

Cabinet has endorsed a legislative framework that includes seven key components, allowing local councils to propose time of use schemes for their areas. The NZ Transport Agency (NZTA) will oversee the design and implementation of these schemes in collaboration with councils, ensuring benefits for motorists and regional stakeholders. All schemes will require Government approval.

“Any revenue from time of use charges must be reinvested into transport infrastructure that directly benefits the local community and businesses. Councils will not be permitted to allocate these funds to unrelated projects,” Mr. Brown added.

Auckland is anticipated to be a prime candidate for the implementation of time of use charging schemes due to its significant congestion issues. The Government is committed to collaborating with Auckland Council to develop a framework that will improve travel times and network efficiency for the city’s residents.

“Auckland faces critical productivity challenges that require effective solutions. By enabling time of use schemes, we aim to address these issues and alleviate the gridlock that hampers the city’s accessibility and productivity,” Mr. Brown said.

The legislation, expected to be introduced before the end of the year, will undergo a review process in Parliament. New Zealanders will have the opportunity to submit their feedback during the select committee stage.

In addition to time of use schemes, the Government is prioritizing new Roads of National Significance and major public transport projects to further enhance travel efficiency and support economic growth.