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Congestion control costs greater than revenues

Media statement Wednesday, April 26, 2006

Congestion control costs greater than revenues: MoT report

Projections by the Ministry of Transport show the costs of implementing some road congestion charges are greater than the revenues to be expected from introducing them, the Employers &Manufacturers Association (Northern) points out.

“The cost of introducing and running the single cordon control favoured by Auckland City Council would cost Auckland’s ratepayers an additional $92 million over 20 years, as well as the $4-6 dollar a trip levies,” said Alasdair Thompson, EMA’s chief executive.

“The congestion control systems under debate would reduce commuters’ travel options and transport volumes but do nothing to improve transport.

“If these congestion controls delivered sufficient surpluses to significantly improve Auckland’s public transport, we would have to support them, but they won’t.

“Instead people would be forced onto our inadequate public transport, and the cost of commercial deliveries around town would rise dramatically.

“The majority of commuters use cars to go to work because they have no option; efficient public transport for where they need to go does not exist.

“On page 21 of the MoT study, Auckland Road Pricing: Evaluation Study, we see the MoT lists the operating and capital cost of the single cordon option as $539 million which, once the cost of managing exemptions to the scheme and other mitigation costs, would leave Aucklanders paying out a further $92.1 million
from rates to run the scheme.

“None of it makes sense. As the Land Transport Management Act ensures tolls are not an effective option, we would be far better off with a regional fuel tax, at least until an efficient, electronic road pricing system can be introduced.”

ENDS

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