Auckland bus fares approved to rise 10pc

By SCOTT MacLEOD

Auckland bus fares may rise up to 10 per cent after operators won approval for a price rise.

The Auckland Regional Council approved the fare increase ceiling after bus firms said they were paying more for diesel and spare parts.

But only two of the city's five firms say they are poised to raise their fares.

John Collyns, head of the Bus and Coach Association, said in a submission that city bus company costs had risen 7.1 per cent since the last time they were allowed to boost their fares, in 1997.

His members also wanted an extra amount to "hedge" against other cost rises expected soon.

Mr Collyns told the Herald that diesel had doubled in price since January last year, and bus operators were facing other big costs as they tried to expand to meet customer demand. For example, the cost of a $111,000 chassis from Germany had gone up about 10 per cent as the kiwi fell against the deutschmark.

Some ARC councillors opposed the increase. Mike Lee said yesterday that it "slammed the door in commuters' faces just as they are getting used to public transport."

He said the council should have tried to hold the fare rise to the 7.1 per cent mentioned by the association.

The main bus firms contracted to the ARC are Stagecoach Auckland, Birkenhead Transport, Hanham's Buses, Howick and Eastern Buses, and Ritchies Coachlines.

Birkenhead Transport company secretary Robert Inwards said fares were likely to rise on his 46 buses by Christmas, but he was not sure by how much.

Ritchies director Andrew Ritchie said an increase was being "very seriously considered." Diesel prices were going up faster than profits from increased patronage.

The firm runs 120 buses in Auckland, mostly in the west, although not all are contracted to the ARC.

Stagecoach marketing manager Russell Turnbull said his company had no intention of raising fares, partly because up to 6 per cent more people were using its buses compared with the same time last year. Fares would be reviewed at the end of this year.

Hanham's owner Dick Hanham said he would do nothing with fares until Stagecoach made a move.

Howick and Eastern chief executive Bill Dalbeth said the company had no immediate plans to raise fares.

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