The parties appear to believe that improving radial roads is futile, because so much extra demand would be induced that congestion would soon be as bad as ever. Yet recent research indicates this “induced demand” problem has been greatly exaggerated.
A smart policy would apply anti-congestion charges at peak times on crowded roads. This would manage “induced demand” and congestion by encouraging alternative travel times, routes and modes, and providing funds for new facilities, such as ring roads, that provide alternatives to congested facilities.
Labor and Green proposals to increase CBD parking costs are flawed. Parking measures have no impact on through traffic and cannot readily discriminate between peak and off-peak driving.
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The emphasis on more subsidies for public transport in all parties’ policies is misguided. Worldwide experience indicates enormous outlays are required to obtain substantial reductions in car trips. This means much more tax or cuts in government programs. Economic modelling indicates that subsidising public transport provides only 10 to 20 per cent of the gains to the community from properly designed anti-congestion charges.
Anti-congestion charges mean better public transport. They increase demand, leading to a more viable system and better services.
Labor’s deferment of anti-congestion charges, and the other parties’ avoidance of the issue appears to be based on distributional concerns. Anti-congestion charges would replace free access at particular times and locations, and allegedly favour the rich. However, the proceeds would allow offsetting tax cuts. In sum, our political parties’ anti-congestion policies will not be effective.
In this context, the RACQ proposes an alternative package. It comprises a complete network of toll-free ring roads, selective increases in radial-road capacity, anti-congestion charges varying with the degree of congestion, offsetting Commonwealth tax cuts, and scaling down of subsidies for public transport as viability improves.
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