THE PUBLIC FINANCE DEBATES: “It’s time…New Zealand extended charging for public infrastructure” Proponent: Geoff Cooper.

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Presentation transcript:

THE PUBLIC FINANCE DEBATES: “It’s time…New Zealand extended charging for public infrastructure” Proponent: Geoff Cooper

Rationing by queues The VUW-GEN Public Finance Debates November 12, 2013

The VUW-GEN Public Finance Debates November 12, Raising revenue

2. Economic Efficiency The VUW-GEN Public Finance Debates November 12, 2013

The VUW-GEN Public Finance Debates November 12, 2013 Fix the fiscal envelope

The VUW-GEN Public Finance Debates November 12, 2013 Rise of the city Population growth, largest New Zealand regions

The VUW-GEN Public Finance Debates November 12, 2013 Congestion vs Auckland Current network2041 – fully funded transport programme

City centre Travel Speeds The VUW-GEN Public Finance Debates November 12, 2013 Current average speed: 17km/hour 2021 average speed: 8km/hour

The VUW-GEN Public Finance Debates November 12, 2013 The marginal external cost of motoring Completely ineffective

The VUW-GEN Public Finance Debates November 12, 2013

Road pricing will release the potential of car pooling The VUW-GEN Public Finance Debates November 12, 2013

Road Pricing Cost benefit analysis Ministry of Transport: Single Cordon: Double Cordon: Area Charge: Auckland Council: Single Cordon: 1.1 Motorway Network: 1.1 Copenhagen$36m p.a London £129m p.a Stockholm€16m p.a Seattle $20m p.a Milan€16m p.a The VUW-GEN Public Finance Debates November 12, 2013

The VUW-GEN Public Finance Debates November 12, 2013 The $5 billion question Do we need a second harbour bridge or will road pricing do?

The VUW-GEN Public Finance Debates November 12, 2013 Annual flow - Current and proposed harbour crossing

The current funding system is not sustainable anyway The VUW-GEN Public Finance Debates November 12, 2013

The VUW-GEN Public Finance Debates November 12, 2013

Road pricing need not be regressive The VUW-GEN Public Finance Debates November 12, 2013

Road pricing Improve urban travel times Free up New Zealand’s most productive employment areas. Take advantage of spare capacity through car pooling Positive cost benefit ratio Sustainable system of revenue collection Less regressive than the current system More efficient - charge people who are creating costs Avoid unnecessary infrastructure costs The VUW-GEN Public Finance Debates November 12, 2013

Is road pricing really that different to pricing bread? The VUW-GEN Public Finance Debates November 12, 2013