NZ Bus to take over Tauranga and Te Puke bus services

Go Bus says it is "really disappointed" to have lost the contract. Photo / File

Pay rates for Bayhopper drivers will increase by an estimated $2 hour after NZ Bus won the Western Bay's bus service contracts.

NZ Bus will take over when contracts held by Go Bus, Reesby Rotorua Ltd, Bethlehem Coachlines and Uzabus expire in December this year.

The company will change the contracted hourly rate for bus drivers to the living wage.

Allan Mathews, bus driver and First Union delegate for Tauranga's Bay Hopper drivers, said the change would be "enormous".

He estimated it would mean pay rates would rise by $2 an hour.

"That would be cause for great celebration if it actually comes to pass. It would be a huge difference for everybody," Mathews said.

However, he said there were still plenty of questions about the changeover in contract, the biggest of which was continued employment for 70 drivers.

In a written statement yesterday, the Bay of Plenty Regional Council said it had awarded the $14.8 million a year contract for an "improved service" to NZ Bus.

The current cost of the contracts was about $12.8m a year.

The new Bay Hopper network would feature redesigned routes, new interchanges, extended operating hours and more frequent services with a fleet of low-emission vehicles including five state-of-the-art electric buses.

Regional council public transport committee chairman Lyall Thurston said the tender process had been "highly competitive" for the nine-year contract.

"Ultimately NZ Bus presented the best combination of price and quality for Tauranga ratepayers. The procurement team were particularly taken with the increased driver pay offered by NZ Bus," he said.

NZ Bus chief executive Zane Fulljames said the company was delighted to be selected to operate the Tauranga bus services.

"We're looking forward to a productive partnership with the council and to provide a quality service to customers, and the exciting changes being implemented by the council will transform the experience for the public, and we are excited to be a part of that,"
Fulljames said.

Thurston said the enhanced bus network starting in December would represent a landmark date for transport in the city.

Go Bus chief executive Calum Haslop told the Bay of Plenty Times last night that he and his staff were "really disappointed" to have lost the contract.

"We're pretty proud of what we have achieved over nine years of running the service in Tauranga, which includes increasing patronage by 40 per cent over that period.

Haslop said drivers' wages had also increased to twice the level of inflation over that time.

"But we do understand we're operating in a contract tender environment, and there are always going to be winners and losers when it comes to contracts over the years.

"We have always been a very competitive operator, but this time NZ Bus, which is a reputable company, has won out," he said.

Go Bus hoped to use its drivers within its existing business contracts when its contract with the regional council ended in December, he said.

The public transport contract is funded from fares from passengers using the service, by the NZ Transport Agency through the National Land Transport Fund, and from the council through rates.

Details of the new network, including specific routes and timetable information, will be released later in the year and schools will receive information relating to school bus routes near the end of term two.