As local government becomes increasingly squeezed financially, there is increasing discussion of city region deals as a new way of funding infrastructure. However, while a city region deal may well include new funding streams from central to local government, there will undoubtedly be an expectation that investments will not be solely financed by central government, and – further – that new and innovative financing models will be used.

New Zealand’s Road User Charges system, through which drivers of diesel-fueled vehicles help fund the operation, maintenance, and development of New Zealand’s roading system, was world-leading when it was introduced in 1978. While it has had some enhancements since, it remains largely unchanged. As alternative fuels – electricity and perhaps hydrogen – start to become commonplace, is it time for a technology upgrade and a shift to electronic road user charges (eRUC) for all vehicles to sustainably fund our land transport system?

A close ally to City Deals is the concept of congestion charging in urban environments as a means of supporting improved allocation of space across all transport modes.