EMA backs congestion charging as Auckland's traffic woes worsen

The release today of a study on congestion in Auckland adds to the urgency around the introduction of time of use charging, says the Employers and Manufacturers Association (EMA).

Auckland’s Cost of Congestion white paper, released by Mayor Wayne Brown, found congestion will cost Auckland $2.6 billion a year by 2026 - factoring in the cost of lost time, as well as impacts like reduced business investment and consumer spending.

EMA Head of Advocacy Alan McDonald says there finally seems to be the political will to implement time of use charging in New Zealand’s largest city.

The government’s Time of Use Charging Bill will be read in Parliament this month, and Auckland’s Mayor has come out strongly in support.

"The EMA has long advocated for time of use charging as it will help maximise the use of existing motorway and arterial corridors around the slowly choking greater city area," says McDonald.

"The EMA commissioned NZIER to conduct a similar survey in 2019, which put the cost of congestion to Auckland's economy at up to $1.3 billion annually.

"Things have clearly gotten worse.

"The local traffic modelling in the new report shows Aucklanders now sit in traffic for 29 million hours a year.

"Congestion charging is intended to reduce this traffic and introduce more certainty into travel times on our roading network, but it will also improve air quality and help to fund public transport.

"This means that allowing businesses and tradespeople who need their vehicles to effectively deliver goods and services around the city will have flow-on effects.

"There are also social benefits for residents who need their vehicles to make doctor’s appointments or drop kids at sport practices.

"Moves to charge commuters who travel at peak times will encourage many to use public transport and help the city derive maximum benefit from the City Rail Link when it comes online in early 2026."

In central London, congestion charging was introduced in 2003 and has helped cut traffic by around 15%.

In Stockholm, where congestion charging was introduced in 2007, it has reduced traffic within the city centre by about 20%.

"Congestion charging has been shown to work around the world and the case for implementing it in Auckland grows by the day," says McDonald.

"It’s time to put a solid case to residents that time of use charging has social as well as business benefits.

"It needs to be done right, but it also needs to be done with some urgency if we are going to unlock productivity in New Zealand."