New Zealand Parliament Passes Land Transport Bill for Time-of-Use Charging to Combat Congestion

The Land Transport Management (Time of Use Charging) Amendment Bill has passed its third reading in Parliament, marking a major step forward in tackling congestion and improving travel times on New Zealand’s busiest roads, Transport Minister Chris Bishop says.Sitting in traffic wastes time, costs money, and drags down productivity, Mr Bishop says.

Travel times in our major cities are up to 30 per cent longer than in comparable Australian cities, with Auckland congestion alone estimated to cost up to $2.6 billion by next year.

Time-of-use charging is a common-sense tool that encourages people to travel at off-peak times or by other modes. It’s about keeping our cities moving - whether you’re a parent on the school run, a tradie heading to a job, or a truckie delivering exports to port.

Time of use charging has been talked about in New Zealand for years and now we’re getting on with it. I am really pleased that the legislation to allow the establishment of time-of-use charging schemes passed Parliament unanimously. After years of discussion, it is great to see that all of Parliament is up for reducing congestion and improving productivity.

The legislation passed today allows local authorities to partner with New Zealand Transport Agency (NZTA) on targeted time-of-use schemes that ease gridlock, improve freight flow, and support economic growth.

The Government has signalled that Auckland Council will be the first local authority the government will look to partner with, given the importance of Auckland to the national economy. Work by Council and government officials is already underway.

We know time of use charging works. For example, the Manhattan congestion-pricing scheme in New York City, which I visited earlier this year, has delivered measurable results. Since the congestion pricing scheme launched in January 2025, traffic delays within the Congestion Relief Zone are reported to be down by around 25 per cent, average speeds during peak hours have reportedly improved by roughly 5–10 per cent, and travel times by about 20–30 per cent on key corridors. Meanwhile, projected net revenue for the programme is on track to hit about US $500 million for 2025, supporting major investment in public transport infrastructure.

I want to thank everyone who took the time to share their views during the Select Committee phase. Their feedback helped strengthen the Bill and will ensure local authorities and NZTA are well equipped to develop robust and effective schemes.

The legislation delivers a National-ACT coalition commitment and is a key milestone in the Government’s 2025 Q4 Action Plan.

Notes to editors Research from Auckland’s The Congestion Question project in 2020 found that an effective time of use charging scheme could reduce peak-time congestion to levels typically seen during school holidays.

The same study estimated that a time of use scheme in Auckland could generate between $21 million and $261 million per year in gross revenue, depending on the specific design and implementation.

An Auckland Transport study released earlier this year estimates congestion could cost the city around $2.6 billion annually by 2026.