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Home / New Zealand

Commuter parking levy investigated for Wellington of up to $2500 per car park

Georgina Campbell
By Georgina Campbell
Senior Multimedia Journalist·NZ Herald·
2 Nov, 2021 04:00 PM4 mins to read

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Thorndon Quay in Wellington. Photo / Mark Mitchell

Thorndon Quay in Wellington. Photo / Mark Mitchell

A commuter parking levy is being investigated for Wellington of up to $2,500 per car park.

Details of what a levy could look like have been revealed in documents proactively released by Let's Get Wellington Moving.

The aim of the levy is to reduce the number of commuters driving into the CBD and parking in the morning peak-hour traffic period. If implemented, a levy could result in 4,500 fewer of these trips.

The preferred option is to charge $2,500 per year in the Thorndon and Lambton areas and $1,750 in Te Aro and Pipitea.

The levy would apply to private off-street car parks used by employees, regular business visitors like a tradie or consultant, and students.

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In this case the occupier of the premises would be liable to pay the levy.

Locations where there are ten or less parking spaces would be exempt. Other exemptions include emergency services vehicles, as well as spaces allocated for mobility parking permits, customers, loading/unloading, cycles, and motorcycles.

Congestion in Wellington. Photo / Mark Mitchell
Congestion in Wellington. Photo / Mark Mitchell

The levy would also apply to public-off street car parks. In this case the operator of the car park would be liable to pay the levy.

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The scope of the levy would also likely include existing on-street coupon parking and 10-hour max meter parking within the CBD.

Earlier this week Let's Get Wellington Moving (LGWM) announced four options to overhaul the city's transport system with mass rapid transit, a second Mt Victoria tunnel, and improvements at the Basin Reserve.

Travel demand management, like a parking levy, is being considered alongside this transport infrastructure investment.

But LGWM acting programme director David Dunlop stressed the commuter parking levy was not included in the current round of public consultation.

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"As part of our Smarter Transport Network work, Let's Get Wellington Moving has been exploring a range of different ways to support change in people's travel choices, including potential pricing tools such as a commuter parking levy or a congestion charge.

"We have done initial investigation on a commuter parking levy and a congestion charge, and considered the mode shift results alongside other possible travel behaviour change measures."

Dunlop said the LGWM project team has not made any recommendations or decisions on potential pricing tools and engagement with the community would be needed before they could be implemented.

The other pricing tool being considered behind the scenes is congestion charging.

Because the levy would lead to a reduction in demand for car parks, it's anticipated supply would also reduce.

Wellington mayor Andy Foster. Photo / Mark Mitchell
Wellington mayor Andy Foster. Photo / Mark Mitchell

Wellington mayor Andy Foster said he was particularly interested in this.

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"To see whether it incentivises parking building operators to release some of their long-stay parking and turn it into short-stay parking, which I think would be very valuable to support business and retail."

Greater Wellington Regional Council chairman Daran Ponter said a levy was less confronting than a congestion charge and wouldn't capture those who have effective free car parks provided by their employer.

"They're not making a rationale decision in terms of transport choices because some of that decision has already been made by the fact they have a free car park in the city.

"You only have to look at the number of car parks in behind Parliament Buildings, for example, to see how many people are actually coming in and securing a free park in that premise every morning and not actually having to make that financial decision."

The levy would take about four years to implement depending on the time taken to prepare, introduce and pass the legislation required.

It would likely be managed by Wellington City Council and would generate up to $28 million in gross revenue per year.

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This money would be ring-fenced for investment in LGWM projects.

The levy's lifespan would be indefinite allowing it to fund ongoing investment in other public transport, active modes and behaviour change initiatives.

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