Hon Chris Bishop
Minister of Transport

A Bill to reduce travel times, increase efficiency, and help boost economic growth and productivity on our busiest roads has passed its first reading in Parliament today, Transport Minister Chris Bishop says.

“Being stuck in traffic is a waste of time and money. In any given peak hour traffic jam there are people stressed about running late for work, parents trying to get the kids to school on time, couriers and truckies getting frustrated as their runs get further and further behind time, and tradies losing money because they can’t get to as many jobs on time,” Mr Bishop says.

“Congestion is a tax on time and productivity, and New Zealanders are very over having to pay it.

“A report released by Auckland Council today shows that by 2026, traffic congestion will cost Auckland $2.6 billion per year, and that Aucklanders already sit in traffic for 29 million hours per year, which averages out to 17 lost and wasted hours per Aucklander.

“Frankly, no-one running a business or juggling work and family can afford to lose 17 hours of potentially productive time.

“Modelling shows that successful time of use charging – charging motorists to travel on certain roads at peak times – will encourage people to change the time or mode of travel, and could reduce congestion by up to 8-12 per cent at peak times.

“Successive governments and a select committee inquiry in 2021 have all agreed that time of use charging is something we need to do to reduce congestion. This Government is getting on with it.

“The Land Transport Management (Time of Use Charging) Amendment Bill will enable the NZ Transport Agency (NZTA) and local authorities to develop charging schemes for our most congested roads.

“The Bill requires NZTA to lead the design of schemes in partnership with local councils to ensure motorists benefit from the design of the schemes across their region’s roading network.

“By enabling local solutions within a nationally consistent framework, we are tackling network productivity head-on while enhancing economic productivity and quality of life for all New Zealanders.

“The legislation is not about raising revenue but maximising the efficiency of the roading network. Any revenue that is collected will first be used to pay for the scheme’s costs and then reinvested to improve transport in the region.

“While time of use schemes will help manage congestion and increase productivity in our cities, it is not a standalone solution. The Government will continue to prioritise investment in growing and maintaining our transport network, including through the Roads of National Significance and Regional Significance, and major public transport projects, to enable Kiwis and freight get to where they need to go, quickly and safely.”

Enabling time of use schemes is a commitment under the National-ACT Coalition Agreement, and the first reading of the Land Transport Management (Time of Use Charging) Amendment Bill was an action in the Government’s 2025 Quarter 1 Action Plan.

The Bill will be referred to the Transport and Infrastructure Committee where the public will have an opportunity to make submissions. The Government intends to pass the legislation before the end of 2025.

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