Road Pricing Required To Bridge Transport Funding Gap
Posted: 25-Apr-2024 |
New Zealand needs to properly price the cost of its roads as soon as possible, and better charge the cost of those roads to users. That is the stark message from Infrastructure New Zealand who says it’s the only option if the country is to deliver on the transport infrastructure required to keep our economy and communities moving through the 21st century.
“The alternative is New Zealanders having to put up with more traffic jams, unreliable public transport, a slow and cumbersome freight network, along with inadequate cycling and walking options,” says Infrastructure New Zealand Chief Executive Nick Leggett.
“The new Government is commendably ambitious for land transport, with major commitments being made in roading maintenance, RONS and public transport. However, those commitments can only be realised through adequate and sustainable funding.”
“When you look at the National Land Transport Fund, it is increasingly being challenged with revenue as vehicle types and use change. Councils are also struggling to fund their local transport obligations.”
“The costs of servicing PPPs are visible now in the accounts, but those roads have not provided the revenue stream they should have because they were not tolled. This is eating into funds that could be used for road maintenance, public transport, and other new projects. “
Linda Meade, of specialist infrastructure advisory firm Kalimena Advisory, told Infrastructure New Zealand, “the growing number of electric vehicles and the complexity created with dual-fuel vehicles like plug-in hybrids, suggests that the days of levying charges on fuel to fairly and efficiently raise revenue to fund our roading system are surely numbered.”