Phoney war rages over congestion charging

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The Victorian Government and the Melbourne City Council are at war over whether congestion charging should be implemented across the inner-city in a bid to improve traffic flow. From the Herald-Sun:

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.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.