Five Million Voices

Should local authorities, in partnership with NZTA, be allowed to set up time-of-use (congestion) charging schemes on roads at peak times, subject to the Minister of Transport's approval?

The bill amends the Land Transport Management Act and the Land Transport Act 1998 to create an enabling framework for time of use (congestion) charging schemes. It does not itself set up any scheme but allows local authorities to identify congested areas and propose charging zones for ministerial approval.

MPs’ arguments for and against the bill

Why support it
  • Supporters argued congestion imposes significant economic costs — citing modelling that Auckland congestion could cost up to $2.6 billion a year — and that charging at peak times could reduce congestion by around 8 to 12 percent, improving travel times and productivity.
  • Supporters said the bill is enabling legislation that is locally led in partnership with the transport agency, is scalable, draws on overseas experience and longstanding economic advice, and requires net revenue to be reinvested into transport in the region where it is collected.
Why oppose it
  • Some members raised concern that the bill as drafted would let the Minister impose a charging scheme on a community three years after commencement, rather than leaving such decisions to local communities and councils.
  • Some members were concerned the schemes could become a revenue-gathering exercise to address a transport funding shortfall, and that revenue could be directed to roads generally rather than guaranteeing free alternatives and funding for public and active transport.

These are claims MPs made in Parliament’s debate — not verified facts.

Full bill summary & link to official bill page

The Land Transport Management (Time of Use Charging) Amendment Bill amends the Land Transport Management Act 2003 to create a legal framework for time-of-use charging, more commonly known as congestion charging. This lets motorists be charged for driving on particular busy stretches of road at the most congested times of day, with the aim of easing traffic by encouraging some drivers to travel at quieter times, take another route, or use public transport. Under the framework, the NZ Transport Agency would work in partnership with local councils to design schemes for specific corridors, set the charges, and run them; revenue would first cover the cost of operating the scheme and then be reinvested in the local transport network. It affects urban commuters, freight operators and tradespeople, and the councils and agencies that manage roads.

This is a Government bill, part of the coalition's transport agenda. The argument for it is that congestion wastes time and productivity and that pricing peak road use is a proven way to smooth demand, drawing on overseas examples such as London, Stockholm and Singapore; supporters frame it as a targeted tool that complements, rather than replaces, building more infrastructure. The argument against is that it amounts to a new charge on households at a time of cost-of-living pressure, effectively a tax to drive on roads people already pay for through fuel taxes and rates. Critics warn it could fall hardest on lower-income commuters who have few realistic alternatives to driving, and raise fairness and privacy concerns about how vehicles are tracked and billed.

See the Parliament.nz ↗ site for the full bill.

Oppose (No) Support (Yes)

Land Transport Management (Time of Use Charging) Amendment Bill · First Reading, 4 Mar 2025
Parliament voted 117–6 — it passed.