Charging drivers a toll when they leave a motorway is an option for bridging Auckland's $12 billion transport “funding gap”, according to a new report which claims strong support for road pricing.
Charging drivers a toll when they leave a motorway is an option for bridging Auckland’s $12 billion transport “funding gap”, according to a new report which claims strong support for road pricing.
But this option would face serious political hurdles, with the National government having repeatedly ruled out tolls on existing roads.
The final report by the Consensus Building Group (CBG) found a gap of between $8-16 billion between the $68 billion of transport spending signalled by the Auckland Plan and the amount of money likely to be raised by current revenue sources.
This equates to a shortfall of about $400 million per year over the next 30 years, a figure unchanged by the government’s recent announcements regarding the City Rail Link and the second Harbour crossing.
It also takes into account the government’s 9c hike in fuel taxes over the next three years.
The CBG has recommended two options to bring in extra funding: rely on increases in rates and fuel taxes or raise most of the money from some sort of road pricing.
A decision will need to be made by 2015, according to CBG chairman Stewart Milne.
“Our principal finding is that unless Aucklanders are prepared to accept significantly higher rates increases and heavier congestion, introducing some form of road pricing by 2021 will be required,” he says.
A number of other funding options were investigated and ruled out, including a regional lottery, a regional payroll or sales tax, a visitor bed tax or departure tax.
Betterment taxes on land value increases, asset sales and Private-Public Partnerships were also ruled out as options for closing the funding gap.
In spite of an estimated $14.5 billion being spent subsidising public transport over the next 30 years, hiking fares is not seen as a viable option due to fears this would reduce patronage.
Aucklanders seem to support road pricing, with 78% of the 1320 submissions supporting this option while only 14% supported raising the money mainly from rates and fuel taxes. Just over 8% of respondents did not support either option.
The CBG recommended two road pricing options for further investigation: a single cordon charge, where motorists are charged for passing into an area, or a motorway network charge where they are charged upon entering or exiting the motorway network.
The motorway network charge was found to result in the highest increases in average speed on the motorway during peak-hour morning traffic.
However, the CBG noted its implementation could be costly.
Auckland Mayor Len Brown says the CBG’s report offers the clearest picture yet of the choices available for funding Auckland’s transport future.
“While both central and local government have committed to significant investments to improve road, rail, bus and ferry networks, we still face a $400 million a year funding gap for 2016,” he says.
Without these further investments, Auckland is likely to face crippling traffic congestion in less than a decade.”
Mayor Brown says doing nothing is not an option.
“It would inflict serious damage to Auckland’s economic potential, environment and liveability.”
The report comes after Harvard economist Edward Glaeser lent his support to road tolling in Auckland.
The CBG report is due to be presented to the Auckland Council at a meeting next Thursday.
nkloeten@nbr.co.nz
