Congestion charging inches closer as bill passes first reading

With legislation gaining support from across the house, congestion charging may soon be a reality for Auckland drivers.

Mōrena, and welcome to The Bulletin for Wednesday, March 5.

In today’s edition: Trade war escalates as Canada and China respond to huge US tariffs; ComCom launches investigation into Wellington Water contractors; But first, legislation allowing cities to impose congestion charging is moving through parliament with near-universal support.

Time-of-use charging passes first hurdle

Congestion charging took a step closer on Tuesday when parliament voted the Land Transport Management (Time of Use Charging) Amendment Bill past its first reading. The legislation will allow Auckland and other cities to introduce “time of use” charges to encourage drivers to avoid certain roads or urban zones during peak times. It received support from across the house, with only Te Pāti Māori voting against, and will now head to the Transport and Infrastructure Committee for consideration.

Heavy traffic costing Auckland billions

The vote coincided with the release of Auckland’s Cost of Congestion (pdf), a report from consultancies EY and Arup on behalf of Auckland Transport. It found that Aucklanders sit in traffic for a combined 29 million hours a year and estimates that congestion will cost the city $2.6 billion a year from 2026, factoring in time delays and other macro-economic costs such as reduced housing affordability and supply chain disruptions.

The National Road Carriers Association (NRC) says the report “confirms what road transport operators in Auckland have known for a long time – freight efficiency is in trouble in Auckland”. The NRC supports congestion provided off-peak travel times do not increase so much they cancel any time savings, and the financial boost from time saved is enough to offset the congestion charge itself. The AA says its members are “pretty sceptical” about charging, and that any scheme should be “fair and affordable” and backed up with good public transport, RNZ reports.

Transport minister to play key role

A notable aspect of the legislation is the powerful role played by central government in any future congestion charging scheme. Unlike the previous Labour government’s original proposal, the transport minister will have a major say in the way the scheme is implemented and how any money raised is spent. Labour and the Greens have criticised this centralisation of powers, with Labour transport spokesperson Tangi Utikere noting the legislation gives the transport minister a “stark ability” to force a city to adopt a congestion charging scheme if deemed necessary, reports The Post (paywalled).

What about exemptions and discounts?

Te Pāti Māori voted no on the legislation because “it unfairly burdens our most vulnerable: whānau Māori, tangata moana, low-income workers”, said MP Takutai Tarsh Kemp on Tuesday. In 2023, mayor Wayne Brown suggested people on low incomes and Gold Card holders might get discounts or even be fully exempt.

That’s a bad idea, says the New Zealand Initiative’s Eric Crampton. He thinks the scheme should hew closely to our GST regime, which is “the world’s best consumption tax” due to its no-exceptions stance. Instead, Crampton envisages a “congestion dividend” that would be paid to all Aucklanders, with Community Services Card holders getting a bigger slice of the pie. Just don’t start offering exemptions, he says. “Once one exception is allowed, it is harder to refuse the next one.”

Labour leader Chris Hipkins said that while “of course” he’d welcome more GPs, the health minister had dropped the ball on bigger-picture issues like illness prevention and early detection. He said the government had made the situation worse by cutting free prescriptions and underfunding the pharmacy-operated minor ailments service.

Have thoughts? Join the conversation in the comments.

My wondrous, semi-scary week week in the Amazon

“From altitude sickness to jaguars and tarantulas, I had little idea what lay in wait.” In this story, Liv Sisson plays back a week spent deep in the world’s largest rainforest. “I quickly realised that saying ‘I’m going to the Amazon’ is extremely vague. It is 6.7 million square kilometres. Nine countries are part of it. And how does one actually go to the Amazon?” There are sloths, giant river otters, capybaras and even a few tears. Read Liv's full travel diary here.

Trade war escalates as Canada and China respond to huge US tariffs

Prime minister Justin Trudeau says Donald Trump wants to crash the Canadian economy to make it easier for the US to annex his country. Trudeau made the claim during a press conference announcing a series retaliatory tariffs on the US, after massive tariffs on Canada, Mexico and China kicked in overnight. China will impose additional tariffs on US farm products, while Mexican president Claudia Sheinbaum says she will announce her country’s response on Sunday. “Global markets fell sharply in response to the escalating trade war, with the S&P 500, a major Wall Street index, extending recent losses to erase all of its gains since Trump's US election victory in November,” RNZ reports.

ComCom launches investigation into Wellington Water contractors

The Commerce Commission is investigating “potential unlawful conduct” by Wellington Water (WW) contractors, The Post’s Andrea Vance reports (paywalled). While the commission declined to give any further details, a Deloitte report leaked to the paper yesterday strongly suggested that WW’s “insufficient” and “informal” financial controls could have opened the door to potential fraud.

According to the report, the entity’s use of consultant and contractor panels to parcel out work failed to “promote competitive tension, quality, and to ensure value for money [was] being delivered”. Furthermore, contractor invoices were automatically paid before consideration or approval by staff. Meanwhile police are investigating an alleged theft by a Wellington Water staff member which is believed to total “many tens of thousands of dollars”.

Join us at The Spinoff Book Club

The best way to enjoy a book is by yourself, the second best way is with a theatre full of people. Books editor Claire Mabey will lead a conversation with avid writers and readers Duncan Sarkies, Carl Shuker, Courtney Johnston and more. Join us to hear about their favourites, their recommendations, and what to look out for in the year to come.

The curious case of Christopher Luxon’s Bayly equivocations

Last week on Mike Hosking’s show, the prime minister danced around the question of whether he would have sacked Andrew Bayly had he not quit, then danced around it again, and again, to the audible displeasure of the ZB superstar. In the new episode of Gone By Lunchtime, Ben Thomas, Annabelle Lee-Mather and Toby Manhire discuss why Luxon was so reluctant to speak plainly.

Plus: the proposed reforms to citizen’s arrest laws, Winston and the warships, and a step towards a referendum on a four-year term, with one big condition attached.

Click and Collect

• Cancelling the iRex ferry order cost the government at least $300 million in manufacturing break fees and broken infrastructure contracts. (RNZ)

• President Zelenskyy has proposed a possible peace plan after the US suspended all military aid to Ukraine (The Guardian)

• Is a Marmite sandwich and an apple good enough for a child’s lunch? (RNZ)

• Richard Prebble: Why I’ve resigned from the Waitangi Tribunal (NZ Herald)

• The Commerce Commission has filed charges against two Pak’nSaves for “misleading specials” (1News)

• An ancient waka found on a remote Rēkohu (Chatham Islands) beach may be New Zealand’s most significant archeological find, says the dig’s project lead (NZ Herald)

Right now on The Spinoff

Claire Mabey rounds up the 16 books making up the 2025 Ockham Book Awards shortlist. From a Mongolian horse to Spanish jamón: Gabi Lardies takes a look at New Zealand's best diplomatic gifts. Anna Rawhiti-Connell writes about the governmental rift revealed by the school lunch debacle. Kyle Matthews explains how the organisation that manages the .nz internet domain got caught up in a ‘free speech’ battle. New show Endangered Species Aotearoa features the best comedy duo on TV right now, says Alex Casey. Auckland transplant Lyric Waiwiri-Smith reviews that beloved Wellington institution, the Newtown Festival. For The Cost of Being, a mum saving for piece of mind discusses overpriced baby toys and other expenses.

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