State governments continue to oppose charging as a weapon against congestion, the idea has high-profile support
April 19, 2013
While state governments continue to hold the line against road pricing as a weapon against congestion, the idea continues to gain high-profile backing.
Just as the Victorian Government reiterated its opposition to the idea in response to the state Auditor-General’s critique of anti-congestion efforts and while New South Wales Roads Minister Duncan Gay has also made no secret of his opposition, Australian Competition and Consumer Commission Chairman Rod Sims has backed it in a speech on infrastructure access.
Sims notes that the Federal Government is investigating pricing options for heavy vehicles so charges better reflect cost drivers, and in which the revenues from these charges are better linked to road expenditure.
He also highlights the costs of congestion to state and national economies.
“The outcomes of these road pricing reforms are intended to unlock more productivity from the road network and deliver more efficient pricing and investment,” Sims tells a workshop held by Gilbert + Tobin lawyers.
“There are definitely also challenges ahead in urban transport.
“While some urban traffic congestion is economically justifiable, the Bureau of Infrastructure Transport and Regional Economics has estimated that the economically unjustifiable costs of congestion in Sydney alone were around $5.4 billion in 2012.
“The issue of congestion pricing and other demand management measures is contentious but, I would argue, so is the issue of increasing traffic gridlock.
“Closely related to this is the issue of how we pay for the urban transport infrastructure of the future. For example, the losses incurred on public infrastructure are now so large that some state treasuries are understandably resistant to expanding the public transport network.
“Ever more money cannot be the answer. Some combination of congestion pricing, appropriate relative pricing between urban transport modes and significantly increased efficiency should be part of the mix.”
