Councils in New Zealand’s Bay of Plenty are backing legislation to share toll revenue, arguing that drivers avoiding tolls shift heavy maintenance costs onto local roads. The proposal comes as major transport projects expand the region’s network, bringing fresh financial pressure to local councils.
Toll Avoidance and Local Infrastructure Pressures in Tauranga
Motorists seeking to bypass charges on major routes are increasingly turning to council-owned roads, creating an invisible maintenance backlog for local authorities. The Bay of Plenty already hosts two of New Zealand’s three toll roads and expects additional charging points as regional transit projects reach completion.
Western Bay of Plenty District Council infrastructure general manager Brad Singh explained that while drivers frequently utilize local alternatives, the council has not conducted a detailed study to isolate the effects of toll avoidance. Specific local corridors identified as vulnerable include the Te Puke Highway and Pacific Coast Highway for the Tauranga Eastern Link, the soon-to-be-tolled Waiariki Interchange in Pāpāmoa East, and Minden Rd in Te Puna for the Takitimu North Link, once tolling begins.
The council is not opposed to tolling. We see this as a discussion about fairness rather than opposition to tolling.
Brad Singh, Western Bay of Plenty District Council infrastructure general manager
Singh noted that separating the cost of toll avoidance from general traffic growth and development remains difficult. However, increased use of local roads would ultimately require greater maintenance and renewal spending, and if future work showed tolling was creating measurable costs on local roads, authorities might explore options to allow a portion of toll revenue to contribute to those network impacts.
Legislative Backing for Revenue Sharing
Local leadership is throwing its weight behind the Land Transport (Revenue) Amendment Bill, which passed its second reading in June. The legislation would enable councils to receive a share of toll revenue.
Tauranga City Council transport system operations manager Shawn Geard stated that the council would monitor traffic patterns around the Waiariki Interchange and Takitimu North Link as tolling was introduced. While the council did not have enough evidence to determine the extent to which toll avoidance contributed to congestion or road wear, it had previously supported the legislative framework.
The council has previously supported tolling in principle as a means of funding new roads, provided this approach is applied consistently across New Zealand.
Shawn Geard, Tauranga City Council transport system operations manager
Meanwhile, an NZ Transport Agency Waka Kotahi (NZTA) spokesperson acknowledged that some motorists chose alternative routes rather than toll roads, noting that this is a factor considered as part of tolling assessments and transport modelling. The agency monitored traffic volumes on toll roads and surrounding networks but did not hold data showing maintenance costs caused specifically by toll avoidance, and noted that toll revenue currently funded the purposes set out for each toll road and was not distributed to councils for local road maintenance.
National Funding Strategy and Regional Toll Networks
Central government figures defend the wider expansion of user-pays transit models. Bay of Plenty MP Tom Rutherford said the Government was making greater use of tolling part of a more flexible approach to funding transport infrastructure.
The starting point for new roads will be to look at whether tolling is appropriate.
Tom Rutherford, Bay of Plenty MP
Rutherford said as more Roads of National Significance were completed and tolled, road users across New Zealand would contribute to the cost of major new infrastructure, creating a more balanced national toll road network. Construction on the Takitimu North Link, a Road of National Significance, is due to be completed in 2028 by NZTA. It will run from Te Puna and connect to State Highway 2 at 15th Ave, and to the already-tolled Takitimu Drive/State Highway 29 – formerly Route K – in Tauranga, which was joined by a new flyover linking SH29 and the Takitimu Drive Toll Road that opened to traffic to mark a major milestone in the Takitimu North Link Stage 1 project.
| Toll Road / Corridor | Annual Vehicle Volume | Annual Revenue |
|---|---|---|
| Takitimu Drive (Route K) | 5 million vehicles | $11.4m |
| Tauranga Eastern Link (SH2) | 4.1 million vehicles | $9.3 million |
| Auckland’s Northern Gateway | Not stated in source | Not stated in source |
Financial reporting highlights the current yield of these assets. NZTA’s 2024/25 Annual Report said that Takitimu Drive made $11.4m in revenue from 5 million vehicles in 2024/25, while the Tauranga Eastern Link/SH2 had 4.1 million vehicles and $9.3 million in toll revenue. Tolls for users of the TEL’s new Waiariki interchange are expected to begin late this year, while New Zealand’s third toll road is Auckland’s Northern Gateway, as discussions over local maintenance relief continue.
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