City of Melbourne faces state government roadblock on congestion tax

The state government and City of Melbourne are set to face off over an inner-city congestion tax that will see the introduction of a new charge based on distance travelled or roads used.

A fight is brewing between the state government and the City of Melbourne over the council’s commitment to an inner-city congestion tax.

Lord Mayor Sally Capp has renewed her push for congestion pricing — a new charge based on distance travelled or roads used, replacing existing car fees including registration — ahead of the imminent release of the council’s 10-year transport strategy.

The radical overhaul is expected to be a key plank of the plan, but while it is backed by leading economists and infrastructure experts, the state government has flatly refused to support it and would be able to veto any new taxes.

The Metro Tunnel project is already causing congestion issues in parts of the CBD. Picture: Ian Currie

The government would also reject any council bid to slash speed limits to 30km/h on arterial CBD streets.

Council insiders realise there is “no political appetite” within the government to introduce congestion pricing, but they are keen to force the debate, believing the reform will eventually be inevitable.

Tension between Town Hall and Spring St is also likely if the council pushes for upgrade works on key streets in parts of the CBD which are already gridlocked due to the Metro Tunnel project and the construction of new towers.

It has been almost a year since the government promised to hire a “city controller” to keep Melbourne moving around competing projects, but the Sunday Herald Sun can reveal the position is not expected to be filled until later this year.

Ms Capp said last week it was “a concern” that the state and federal governments were pumping more money into the Monash Freeway which would bring more cars into the city.

“We have to start talking about things like congestion pricing because the use of our roads is so important. We just can’t keep building more roads,” she said on 3AW.

Lord Mayor Sally Capp. Picture: Nicki Connolly

Transport Infrastructure Minister Jacinta Allan said the Metro Tunnel was the best way to reduce the number of cars in the CBD, as it would enable an extra half a million public transport trips in and out of the city every week.

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“The Andrews Labor Government is undertaking the biggest construction agenda in Victoria’s history and we will work with Melbourne City Council to ensure our plans are co-ordinated to maintain traffic flow,” she said.

The council’s transport plan is also expected to push for a second Metro Tunnel via Fisherman’s Bend, which the government believes cannot go ahead until after the first Metro Tunnel and the airport rail link are completed.

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