Route K tolls are to be raised to $1.50 for cars. Light trucks and heavy trucks escape the increase, remaining at $2 and $4.
These toll increases are expected to take effect in January 2012.
The Route K toll booth.
The Tauranga City Council approved the increases for public consultation, required because the changes are part of the draft Route K Bylaw.
Public consultation will take place in September and October, and is consistent with the process outlined in the Ten Year Plan process.
It is the first increase in Route K tolls since they were imposed in 2003.
The increases are required for the road to pay its way – a requirement if the NZTA is ever to take it off the council's hands.
The car toll increase also brings Route K tolls in line with the projected toll on the Eastern Link highway.
The council heard the effect of the GST increase has been to drop revenue by $44,000 over the last 11 months, which is the equivalent of 50,000 cars.
The draft Route K Bylaw is up for formal consultation in September and October, consistent with a proposal outlined in the 2009/19 Ten Year Plan.
The council is also proposing a toll-free exemption period in February so it can assess how much traffic is choosing alternative routes because of the toll.
The new bylaw also allows other paying options for users, including a stored value card and brings the toll road's operations into alignment with the Land Transport Management Act, instead of the Route K Empowering Act.
The change of legal framework is necessary should Route K's operation be taken up by the NZ Transport Agency.
19 comments
Ridiculous
Posted on 20-09-2011 14:21 | By Jitter
Whoever thought this up has no business or practical sense at all. You either increase all charges or none at all. By doing this the number of cars using Route K will drop dramatically. It is far easier to find $1 or $2 than fish around for $1.50. Absolutely clueless.
Get real
Posted on 20-09-2011 13:08 | By The author of this comment has been removed.
Come on now you bean counters - use a bit of common! If a 15% increase in GST dropped your income by $44,000 how big a drop will you expect with a 50% increase in toll fee - I would have thought that if you wanted more income you would have introduced cheaper use by cars such as weekly/monthly tickets at economy rates. I am no accountant but would be willing to put my money on a bet that if you go ahead and raise the toll that your annual income from the road will take a major hit - again there does not seem to be too much grey matter floating around the council chamber!
Another brain wave
Posted on 20-09-2011 13:11 | By Real
Sounds like a plan lets put up the rate so more people use it. We seem to have people in positions that have no idea about the reality of a resession. I only recently started using the road and at $1,50 I'll just as before avoid it. It's not that great a piece of road and the savings for me are minimal.
tolls
Posted on 20-09-2011 15:37 | By Glen Clova
I use this road on a regular basis and think $2 is a more realistic price,remember nothing is free in this world someone has to pay either through tolls or tax.
WHY
Posted on 20-09-2011 13:37 | By 0800mymechanic
We use this road all the time. Why is it that it has a toll but is one of the worst kept roads in the bay???
White elephant
Posted on 20-09-2011 13:56 | By CC8
If the toll was fair to all , i.e tolled electronically at various points along the route ,more people would use it. Why don't the residents of Bethlehem and Katikati pay a toll like those from Tauranga South , Welcome Bay, Eastern Bay, Kaimai and the Waikato ?( If they choose to use the toll road that is, instead of clogging up Cameron road and Fraser Street. It is a white elephant to the residents of the upper avenues and Tauranga South . Convenient on and off ramps are needed.Ones which work in both directions , at Greerton ( Chadwick road maybe ?) 15th/17th avenue and 11th avenue . These planning idiots wonder why the CBD is dead, look at where the roads lead to!! It is easier to get to Bayfair than the CBD from Greerton or Gate Pa. Even getting to the hospital is a maze of traffic lights and clogged up city streets.
Untitled
Posted on 20-09-2011 16:37 | By davidt5
Would we not have a bunch of the most clueless councillors in the country? Little wonder the government does not wish to take over the road.
Short Sighted
Posted on 20-09-2011 17:26 | By Thoughtful
Whilst I personally rarely use this road those who I have spoken to and who use it twice daily tell me that they will stop doing so if the rate increases. So, higher tolls = less traffic, net financial result nil.
ROCK AND A CLIFF FACE ...
Posted on 20-09-2011 18:06 | By PLONKER
The pain of K Road merely brings a tear to the eye of the pain and sufferance that must constantly be endured by all and sundry these days. Reminds one of the plights of the average Aussie sheep, the destiny is to accept what is given and endure the pain of it all or to make a jump for it off the cliff. The latter would certainly seem somewhat more palatable!
Cut costs
Posted on 20-09-2011 20:09 | By Jak
Why not partly automate the toll so drivers can swipe the new prepay cards themselves - there are spare lanes, maybe $1 for automated lane and $1.50 otherwise. Or an automated coin collection lane. Make it easier to use so that can pump more cars through without the need for more staff on the booths or even reduce number of staff maybe even?
What about regualr users?
Posted on 20-09-2011 21:22 | By quinn
As a household who already contribute an average of $4/day using this road (and doing our bit to stay off Cameron Road, we would think twice if the tolls went up. There seems to be no exception for people who use cards and travel the road regualrly. How about some sort of incentive scheme - for every $100 we spend on tolls, we get 10-20 bonus trips. If you want to increase volume and therefore revenue, increasing the cost (for only some of the users) is not going to help.
zara
Posted on 21-09-2011 07:56 | By Zara
Brilliant idea.I must use it in my buisness, just put my prices up by 50% and watch the profits roll in.I cant understand why companies like Mc Donalds and the petrol companies have not thought of it.
Penalise best customers ...
Posted on 21-09-2011 11:41 | By Murray.Guy
Not hard to understand why some view with concern 'business cases' produced by the City Council. Most of us are well aware it was a seriously flawed business case that now has our community $70 million in debt with absolutely no accountability. Our family is also a daily user of Route K and do so as it is a pleasant route into the city centre. The shorter route is Cameron Road. I purchased a couple of pre-paid cards to support the scheme, despite giving us no benefit whatsoever and cash in advance to the Council. We will not be using Route K with the same frequency should (when) the cost increase. Those that use the road less frequently will no doubt find the increase less of an issue.
@ ZARA
Posted on 21-09-2011 13:33 | By PLONKER
They do already, the petrol companies and McD, but the diffeence is they are running a business and have a clue about what they are doing to obtain out the best returns and a profit. Here we have a bunch of BOFFINS trying desperately to mimick that with everyone elses money and of course making a complete mess of it, they have not even been allowed into the play ground sandpit at pre school ... The $75m debt (was $43m at the start) is a solom reminder of just how successful they really are!!!! NOT
GULL-A-BULL MORONS
Posted on 21-09-2011 14:30 | By Secret Squirrel
The official report thinks that the price increase will not make any difference to traffic volumes, so the "Money will then roll in". As pointed out below, the price increases are for the highest volume of users, the officials see that as easy money to earn from this. Trucks are actuallyt heones that damage the roads not cars, so the price difference needs to be a lot more as a result, if they had a clue they would know that the economics of a truck using K ROAD is great, even at $30/truck it is economic to use the toll road. Funny enough the road was built to take traffic directly to the port without coming though urban areas ... always interesting how these idiots look in the mirror and see SOOOO much more than themselves.
BRAINDEAD
Posted on 21-09-2011 21:26 | By KAMIKAZE
a $1.50 you gotta be joking what a stupid amount. Keep $1 or make it $2.
@ KAMI-CRAZY
Posted on 22-09-2011 19:28 | By PLONKER
That is mad sir, dont suggest $2 they will grasp at anything that one "persons flippently says in jest" as real and of course as being public acceptance .... The RORT of the TURKEYS of Tauranga continues.
BREAK OUT REQUIRED
Posted on 24-09-2011 11:19 | By CRUMPY
The only way for Route K to work is if the toll per car was $4-5 each and all other prices were increased by the same. End result in doing that means no one will use the road. END GANE here = disaster happening now, no way out, need to "bit the bullet" as only going to get worse.
@ PLONKER
Posted on 27-09-2011 01:36 | By DRONE
Yeah I think you have got that right, the cars are 3000 odd a day and were meant to be 12,000 a day from the start so that easily means $4/car to break even, lack of cars needs to be made up for by a per car price increase, only TCC logic would think of it and WORSE think it was going to happen "just like that ...".
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