Thank you, Madam Speaker. Look, I’m delighted to rise on behalf of New Zealand First, and delighted to speak on this time of use bill, and that time of use changing will soon become available as another tool in the transport tool kit. It’s something that local government—in particular in our biggest city, Auckland, but also in the Wellington region—has been asking for, for several years, and saying, “Can we have some empowering legislation that allows us to look at time of use or congestion charging schemes?”
As a former councillor in the Wellington City Council, I was charged often with, and quite enthusiastically, advocated for that both to the Hon Phil Twyford when he was Minister of Transport, and Urban Development, and also to the inquiry which was headed by Greg O’Connor in the last Parliament’s Transport and Infrastructure Committee where we, as a Wellington City Council and we as a Wellington region, were advocating for this very tool.
It’s really nice, now, to be in a position of having been able to shepherd this bill through the select committee process as the chair of that committee and to make some good improvements to that bill. I did want to start by saying thank you to all the members of the committee, to our great committee clerks, to all the officials who helped us, to all the submitters, and also to the Minister of Transport. I’m going to come back to the Minister later on because there was a particular role which I think is really, really important that he played in this process.
Time of use charging, really, is all about managing or balancing supply and demand. It’s what you potentially impose; the price goes up when supply is overwhelmed by demand at those peak times. While we’re not used to it in the road transport situation, we are in many other situations. Think about public transport pricing: peak, off peak; those prices are different. Think about energy prices, think about aviation, think about ferries, think about accommodation; all of those we have a charge which is greater at times of higher demand than it is at lower demand periods.
The Infrastructure Commission has encouraged greater use across the board of charges to modify behaviour so that we take some of that pressure that the Hon Julie Anne Genter was talking about off our infrastructure system. Time of use charging in the transport area is about putting a charge in place so that people either change the time of travel or the way in which they travel, the mode in which they travel. It sometimes only takes a small change in traffic volume to make all the difference to the speed in which you travel and the travel time that it takes to get from A to B.
It also potentially—and I guess this reflects one of the things that Julie Anne Genter was talking about—allows you to either delay or even not to do some major infrastructural projects. I think she’s quite right that every one of those business cases now should really be considering what would happen to that business case if you put in place a time of use charge. Does it still hold water? Is it still something you should do or maybe it’s something you can do later or maybe it’s something you don’t need to do at all. Those are the things which we should be thinking about.
She also raised—it was interesting—the old induced demand. If you build some more lanes, they’ll automatically fill up over a period of time just because you built the lanes. Well, yeah, but do think about sometimes the population has grown very, very significantly, and those people, as Simon Court said, might not all travel on a bus; they might also put their cars on that road. There might also be different changes in land use which are driven by—so, for example, in the Wellington region, you think about the roads which have been built up towards the Kāpiti Coast. Funnily enough, as soon as those roads were announced, what did the real estate agents start saying? “Well, there’ll be more development up there.” Of course there’s going to be more development up there; that is induced demand. But it’s not just because you built the road; it’s because people decided to go and live there—more people decided to go and live there. That is where that demand is coming from.
Dr Tracey McLellan raised concerns that some people cannot change their time or their mode of travel, and that’s absolutely true, but they will get a benefit from that. That’s one of the answers we have, particularly to the freight sector: you do get a benefit because you’re able to travel to where you want to get to much quicker. She said that the cost of congestion was one of the smaller costs in the transport system. The estimate in Auckland alone is $2.6 billion in time lost in traffic congestion every year; that is not a small cost to the system, not a small cost to us as a community, and not a small cost to productivity.
The Transport and Infrastructure Committee listened carefully to submissions, we asked questions; I think we engaged authentically and that is what we should always be doing, whether it is in select committees or any form of Government or local government, and also challenging submitters. All of those things are really vital to trust and confidence in process. The Transport and Infrastructure Committee made several amendments and one of the things I did want to say—I go back to the Minister of Transport—we did get pushed back from the Minister’s office on three amendments, but we pushed back again and said, “Actually, we think that those amendments really hold merit.” We had some conversations and ultimately the Minister said, “Actually, I agree with you and I’m going to accept those amendments.” I think that is the select committee process at its best; it is not just automatically going along with what the executive says, but it’s saying let’s think about those things, let’s push back, let’s come to the right answer.
It’s interesting to reflect that when we are considering the issue of a four-year term, the bill—which is still, I think, somewhere in the system, talks about the role of select committees in that process and that being one of the checks and balances on the system and on the executive. So I think that is something that we should be thinking about: what do we expect from our select committees in terms of the way in which they look at, consider, and report back legislation?
Quickly, on those three changes, one of those was around governance and we put in place several safeguards for local government, for the New Zealand Transport Agency (NZTA), and for the community. The particular one for local government was that local government was quite adamant that if NZTA was given the dominant role—was given the chairing, effectively, of the scheme boards which we set up—that they weren’t going to have a bar of it, and that would defeat the whole purpose. So what we’ve done is we’ve listened to that very carefully and we’ve recommended that there is an independent chair of that process to balance NZTA and the councils, and that is something we should push with the Minister, and the Minister said, “Ultimately, yes, I agree with that.” So that was really, really good.
The second one was exclusions. Originally, the bill as introduced only had emergency vehicles being excluded. The ACT Party representative decided that even those shouldn’t be excluded, but we figured that those had to get to where they had to get to and the ambulance officers aren’t going to get out and walk with their equipment, or the fire engine crew aren’t going to be able to walk their hose from A to B. So that exclusion stayed, but we did include the exclusion for public transport—for scheduled public transport—and for Ministry of Education rural buses. The reason for that simply is we want—part of this is changing the time you travel, part of it is changing the mode you travel. That was about changing the mode you travel.
The third one which we pushed was the use of surplus funds, and hopefully there are some surplus funds because there is a big, big deficit in the transport budget—over decades, probably—and we need to be able to address that over time. We said there needs to be a closer nexus between where the money comes from and where the money is used; not just in the wider region, but in the area close to the area where the congestion is, to help deal with that congestion. That’s about making the ideas of these schemes palatable and understandable to the communities. The Minister, again, accepted that, after discussion.
The legislation does not implement any time of use charges, but what it does do is create the framework so that councils and NZTA can go and engage with their communities and implement those, working together. I think it’s great that we’ve got to this point. Again, I thank everybody for the hard work that’s gone into this and I commend this bill to the House