Report estimates traffic bottlenecks cost Auckland $1.25 billion each year.
Rob Hosking talks about the latest OECD report on NBR Radio and on demand on MyNBR Radio.
To build your own NBR Radio playlist and enjoy instant on-demand access to any audio, sign up for our FREE smartphone-only subscription to NBR ONLINE.
Among other recommendations, the OECD’s latest biennial report on New Zealand has advocated the introduction of tolls and user-pays congestion charges to alleviate the traffic bottlenecks that respectively earn Auckland and Wellington the title of the second and third most congested cities in Australasia (Sydney takes the top spot).
The economic survey identifies long-term under-investment in infrastructure as the key cause of the cities’ congestion woes and estimates the problem comes at an annual cost to Auckland of $1.25 billion each year in lost productivity.
"Placing a cost on travel during peak periods could incentivise drivers to travel at different times [off-peak], if they are not required to be on the roads, or could encourage more carpooling and use of public transportation," according to the report.
It also notes the money raised as a result should be used to fund new roads and increased public transport.
Last year Auckland Council floated the idea of motorway tolls or a regional fuel tax to bridge a $12 billion transport funding gap over the next three decades but, in the absence of central government enthusiasm for the proposal, has introduced a targeted rate increase instead.
To build your own NBR Radio playlist and enjoy instant on-demand access to any audio, sign up for our FREE smartphone-only subscription to NBR ONLINE.
