Road User Charges system
Supporting and monitoring the legislation to ensure the effective functioning of the road user charges (RUC) system.
Road User Charges system
What you need to know
Time of use schemes are a way to improve traffic flows and shorten journey times. It works by charging road users at certain times or locations, depending on how busy the roads are.
During peak times, when the roads are busiest, the charges are higher. During off-peak times, when there are fewer cars on the road, the charges are lower or there are no charges.
How do they work?
The idea behind time of use schemes is simple. By making it more expensive to drive during busy times, it encourages people to change their travel habits, so there are fewer people on the roads at the busiest times. For example, if you usually travel during rush hour, and you don’t have to, you might choose to leave earlier or later to avoid the higher charges. This can help to spread out the traffic, making the roads less congested.
Time of use charging is similar to congestion charging, but it has a broader focus. While congestion charging targets specific roads to reduce volumes and travel times, time of use schemes aim to improve traffic flow across an entire network, enhancing reliability and productivity overall.
What are the benefits?
The overarching goal of a time of use scheme is to make travel more efficient. It does this by:
- reducing congestion: By encouraging drivers to travel at different times, time of use schemes can reduce the number of cars on the road during peak times.
- supporting faster travel times: Less congestion means that traffic is flowing freer making travel faster for everyone.
What is happening now?
The Ministry of Transport is working with the Parliamentary Counsel Office to draft a bill so to be introduced to the House before the end of 2024. After that, the draft bill will be referred to the Transport and Infrastructure select committee which will take public submissions on it. You can keep track of the Transport and Infrastructure select committee’s activities, and find out how to make a submission on the draft bill, by visiting this website:
Transport and infrastructure (parliament.govt.nz)
Proactive release of Cabinet material and advice papers
Cabinet material and advice papers for time of use schemes can be found here:
Time of use charging Cabinet material proactive release
The facts
The fact sheet below provides more detail about the scheme, and the next steps.