Govt Introduces Key Policy Reforms to Accelerate Toll Road Development

The policy adjustments align with a user-pays philosophy, focusing on optimizing toll revenues to fund modern infrastructure that improves economic productivity and reduces travel times.

The New Zealand Government has announced significant policy changes aimed at enabling tolling on roading infrastructure, paving the way for faster delivery of critical transport projects across the country. Transport Minister Simeon Brown highlighted the reforms as a step toward a more efficient, user-funded approach to developing and maintaining the nation's roading network.

“Tolling is a tool used worldwide to accelerate investment in roading infrastructure,” Mr. Brown said. “These changes will ensure those who benefit from improved roads share in the cost, enabling projects to be delivered sooner and more efficiently.”

The policy adjustments align with a user-pays philosophy, focusing on optimizing toll revenues to fund modern infrastructure that improves economic productivity and reduces travel times.

The reforms include:

Corridor Tolling: Allowing tolls to apply to entire road corridors, including existing roads that gain capacity or are extended by new projects.

Inflation-Linked Pricing: Toll prices will automatically increase with inflation to ensure users contribute fairly over time.

Viable Free Alternatives: Ensuring every toll road has a free alternative while allowing heavy vehicles to be required to use toll roads designed to reduce suburban traffic congestion.

Efficient Revenue Collection: Upgrading NZTA systems to reduce toll collection costs, including tolling vehicle owners instead of drivers.

These changes will expand the scope of tolling to include new and existing roads, allowing the New Zealand Transport Agency (NZTA) to fund and complete essential infrastructure projects sooner.

Community Consultation and Transparency

Clear principles for toll road proposals have been established, with NZTA required to engage in thorough consultation processes. Communities will be informed about the benefits of toll roads, potential impacts on local roads, and how toll revenue supports maintenance of free alternatives.

Upgrading Tolling Systems

To streamline the process, NZTA is upgrading internal software and legal frameworks. These updates will reduce processing costs and simplify toll payment collection, ensuring the system operates efficiently for both users and administrators.

Initial Toll Road Projects

The Government has approved tolling for three new projects following public consultation:

1. Ōtaki to North of Levin
2. Takitimu North Link
3. Penlink

These projects are expected to enhance connectivity and improve travel efficiency in key regions, including Auckland, Tauranga, and Greater Wellington. Each toll road will maintain a free, viable alternative route for motorists.

Conversely, tolling will not be implemented on the Manawatū–Tararua Highway due to consultation delays and timing constraints, which make tolling infeasible within the Government’s expectations.

Future Roading Strategy

The Government has also directed NZTA to consider tolling for all Roads of National Significance, ensuring new projects can be financed effectively without overburdening the National Land Transport Fund. This approach preserves resources for maintaining state highways and local roads.

Legislative Framework

Legislation to formalize these changes is scheduled for introduction next year. Once enacted, it will provide a robust framework for NZTA to implement the updated tolling policies, supporting New Zealand's efforts to develop future-focused roading infrastructure that enhances connectivity and bolsters economic productivity.

“These changes ensure that New Zealanders benefit from faster, safer, and more reliable journeys while supporting the growth of a modern, efficient transport network,” Mr. Brown concluded.