Analysis: Why Wellington is next in line for a congestion charge

Traffic congestion outside Wellington's Mt Victoria tunnel. Photo / Mark Mitchell

ANALYSIS:

Less than three years ago the Government had ruled out a congestion charge for Wellington, now it's likely the capital city is next in line for one behind Auckland.

There are hints scattered everywhere suggesting this. From comments made by the Finance Minister after a pre-budget speech, to the draft Emissions Reduction Plan, or a report published by the Helen Clark Foundation.

It appears there will soon be clarity on the issue for Wellington, which is very much needed considering the big projects being thrashed out in the city's multi-billion-dollar transport project.

Yesterday, Finance Minister Grant Robertson was asked about the beleaguered Let's Get Wellington Moving (LGWM) project after his second pre-Budget speech.

Robertson insisted that progress was being made. He also said there would be more details in the final Emissions Reduction Plan, being released on Monday, about funding tools for partner councils to deliver what the Government was asking of them.

He would not say whether that could be taken as a strong indication Wellington will have the option of a congestion charge.

But, speaking generally, Robertson pointed to the extensive work done investigating congestion charging, cross-party support for its role, and that it was part of the draft Emissions Reduction Plan.

Finance Minister Grant Robertson after his second pre-Budget speech yesterday. Photo / Marty Melville

The draft plan proposes introducing congestion charging and more specifically, to work with Wellington's city and regional councils in response to their requests for it.

Meanwhile, a report published by the Helen Clark Foundation this week said it was "highly likely" the Government would agree to implement congestion charging in both Auckland and Wellington.

The report's author Tom James told the Herald he "absolutely" thought Wellington would be the next cab off the rank after Auckland.

This was despite his report finding the impacts on lower-income people from congestion pricing in Wellington were less clear than in Auckland, and called for more work.

The report said "available modelling shows that some lower-income communities could be disproportionately affected as they will continue to make trips to and through the CBD at similar levels".

This mainly affected those travelling from northern suburbs to the likes of the hospital or the airport, which could be addressed with improved and affordable public transport services, James said.

But otherwise, the report said 54 per cent of Wellingtonians either walked, cycled, or took public transport into the city during the morning peak.

"This is very high proportionately, given that only 13.6% of New Zealanders usually travel that way to work. This indicates there are good alternative travel choices to and around the central city for many already."

The thinking around congestion charging in Wellington has undergone a monumental shift in recent years.

The issue reared its head in the first few months of Andy Foster's mayoralty.

Foster was caught on the hop after he discovered the Government had quietly ruled out congestion charging for Wellington. He claimed the first he'd heard of it was when the Herald approached him for comment in response to the Government's position.

Transport Minister Phil Twyford had said there were no plans to introduce the charge in Wellington and it was not part of the LGWM package.

But both Foster and Greater Wellington Regional Council chairman Daran Ponter would not take no for an answer.

They continued lobbying for the charge, which was seen both as a tool to help fund LGWM and as a way to encourage mode shift.

It was a later recommendation from the Climate Change Commission to seriously consider congestion charging that appeared to get the Government's attention last year.

That advice, from the Climate Change Commission, informed the Government's draft Emissions Reduction Plan.

Michael Wood, now the Transport Minister, said in June he was open-minded about a congestion charge in Wellington, a significant shift from his predecessor's position on the issue.

Minister of Transport Michael Wood. Photo / Mark Mitchell

Soon after that, representatives from the city and regional councils made a submission to the transport and infrastructure select committee while it was holding an inquiry into congestion charging in Auckland.

Foster made the case that Wellington needed to know sooner rather than later about whether a congestion charge would be allowed, so it could be included in LGWM.

A briefing from Waka Kotahi NZ Transport Agency to Wood in February this year showed a congestion charge was now very much back in the mix.

The document was released to the Herald under the Official Information and Meetings Act.

Transport services general manager Brett Gliddon said LGWM had undertaken additional work to support a preferred option for the likes of mass rapid transit and a second Mt Victoria tunnel.

"This work has included advance planning for the scope and procurement of the detailed business case phase, carbon quantification, modelling and congestion charging."