Ministry of Transport Releases Auckland Road Pricing Submissions Analysis

The Ministry of Transport has released the submissions analysis of the Auckland Road Pricing Evaluation Study (ARPES), and will undertake further work on the issue.

There were approximately 800 submissions, about 25% of which support road pricing. This is slightly higher than international experience at similar early stages of consultation.

Secretary for Transport Alan Thompson says the Minister of Transport, Hon Annette King, has asked the Ministry to work closely with the Auckland Regional Council, Auckland Regional Transport Authority and local councils, to undertake further analysis on the issues raised. The analysis will investigate the extent to which additional public transport can address the concerns raised in some submissions that there are insufficient alternatives to the private car.
The scope of the analysis will also include further investigation into the economic impacts including potential productivity gains for the Auckland region, as well as looking in more detail at the impact on the CBD and commercial road users.

The Minister has asked the Ministry to also investigate an additional scheme with the primary objective of generating revenue for Auckland transport needs.  (The scheme developed as part of ARPES had reducing congestion as the main objective, with raising revenue its secondary objective).
Key findings of the submissions analysis include:

• Congestion was acknowledged as a significant problem in Auckland that should be addressed.
• Approximately 75% of submissions do not, at this stage, support road pricing to address traffic congestion. The reasons cited include inadequate public transport, the lack of a north/south "ring road", the inequity of charging for the use of roads that are perceived to have been funded through existing taxes and the fairness of applying a flat road pricing structure across all groups in society.
• Individual submitters were concerned with the private cost and associated affordability of the proposed road pricing schemes. 
• Larger organisations were more supportive of road pricing and recognised that Auckland's congestion issues must be addressed for the benefit of the country. Support tends to be conditional upon investment in roads and public transport prior to the implementation of road pricing. 
• Local authorities generally support exploring road pricing as an option to address congestion, provided substantial improvements in public transport are in place first.

The ARPES investigated schemes which charged for the use of existing roads and parking during the morning peak period, finding it was possible to decrease congestion, raise revenue and have positive economic and environmental impacts.

Work on road pricing should not be confused with Transit's proposal to complete and operate the Western Ring Route as a toll road. The ARPES did consider the concept of tolling the Western Ring Route and if a decision is made to proceed with either mechanism, consideration will need to be given to how they might best fit together.

"The people of Auckland have spoken and we're taking their concerns to heart. Further work will be done before making any decision on road pricing to investigate how we can achieve the best results for Auckland's people and economy." said Secretary for Transport Alan Thompson.

Questions and Answers

Q. What is the scope of the additional work?

A. Further analysis on the issues with road pricing identified by submitters and the Ministry's own analysis. This includes:

• investigating the extent to which adverse social impacts can be addressed through measures such as additional public transport, exemptions and other initiatives (e.g. car pooling);
• further investigating the economic impacts including potential productivity gains for the Auckland region and undertaking case studies on key groups including CBD retailers, the transport industry and the port);
• developing an additional scheme with the primary objectvie of generating revenue for Auckland transport needs rather than addressing congestion;
• better measuring the effect of reduced congestion on the 80% of Aucklanders who would not face a direct financial cost; and
• aligning this analysis other work undertaken on funding tools and the outcome of the Auckland Transport Strategic Alignment Project (which has been working to draw together the views of central and local government on transport in Auckland).

Q. With 75% opposing road pricing in some way, why move ahead with further work?

A. Few submitters rejected road pricing outright. While the majority of submitters were opposed to road pricing, the opposition was usually dependent on public transport, an issue that ARPES did not fully explore, or was being actively considered in other areas (e.g. the Auckland Rail Development Plan). In investigating these issues further, the government has taken on board the views of the majority of submitters and, with further investigation, will be able to determine with greater confidence whether the issues raised in the submissions process can be satisfactorily addressed.

Q. What is the government doing to address the issues with Auckland's public transport network?

A. The government is investing $2.1 billion in public transport in Auckland over the next ten years. This includes $600m for upgrades to the rail network, completion of the North Shore Busway, and funding for bus, rail and ferry services through the National Land Transport Programme.

Q.Will road pricing replace work on tolling in Auckland?

A. No. The work on road pricing should not be confused with Transit's proposal to complete and operate the Western Ring Route as a toll road. Tolling is a mechanism that could allow Transit to raise additional revenue to build the Western Ring Route sooner than planned. Road pricing is used to influence how people choose to travel. If a decision is made to proceed with either mechanism, consideration will need to be given to how they might best fit together.

Q. What will be the assumptions with regards to completing the Western Ring Route for this further work?

A. The work on road pricing will need to recognise Transit's proposal, and the fact it may or may not proceed. The analysis will need to be flexible, recognising that tolling could allow a completed Western Ring Route by 2015 or, if toll revenue or alternative funding is not available, the completion of the Western Ring Route could be delayed by approximately 15 years.

Q. When will the further work on Road Pricing be completed?

A.Over the next year

Q. Will road pricing be implemented at the end of this work?

A. The government and local authorities will need to carefully consider the final report before a decision is made to implement road pricing.

Q. Why is a revenue scheme being analysed?

A. The aim of a revenue-focussed scheme would be to fund significant projects in the Auckland region. Such a scheme would tend to have lower charges (which keeps more people on the road - meaning increased revenue - but does not have as greater impact on congestion) and as such may also have reduced social impacts. Development of this scheme will allow us to more fully consider different ways in which road pricing could help address both congestion and transport funding issues in the Auckland region.

Q. How many submissions were received?

A. The Ministry of Transport publicly released the Auckland Road Pricing Evaluation Study in mid-March. A request for submissions on the study resulted in over 800 replies from individuals and organisations.

Q. How many submissions opposed congestion pricing?

A. Approximately 75% of submissions (excluding pro forma submissions) are identified as being against or conditionally against road pricing either in principle or as a means of addressing Auckland traffic congestion. 

Q. What were the reasons given for opposing congestion pricing?

A. Submitters point to the inadequate state of Auckland's public transport network, the lack of a North/South "ring road", an aversion to the concept of road pricing on roads that are perceived to have been fully funded through existing taxes and the unfair application of a flat road pricing structure across all groups in society.

Q. Who supported congestion pricing?

A. Larger organisations display a higher level of conditional support for road pricing on the basis that they recognise that Auckland's congestion issues must be addressed for the benefit of the city. Their support tends to be conditional upon investment in land transport (roads and/or public transport) prior to the implementation of road pricing. Larger organisations, including local authorities, have also focussed more upon the wider economic benefits and costs of road pricing.