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Home / New Zealand

Making buses, trains and ferries free would cost $330m, ARC says

By Mathew Dearnaley
14 Aug, 2007 05:00 PM2 mins to read

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KEY POINTS:

Providing Aucklanders with free public transport would cost $330 million a year for just a modest dent in traffic congestion, says a regional council report.

That would be almost three times the existing public transport subsidy of $111 million raised annually from ratepayers and taxpayers, the council's transport
policy committee heard yesterday.

The staff report based its calculation in part on a previous study by consultants who predicted that allowing people to ride for free on buses, trains and ferries would boost overall patronage by 38 per cent.

But although that would push up patronage from 53 million to 73 million passenger trips a year, the report said it would mean a reduction in peak-time car journeys of between just 2.7 and 3.1 percentage points.

Public transport's share of all peak travel in Auckland would rise to 9.7 per cent, from 7 per cent now.

Although the council report points to an initial reduction in congestion and travel times by abolishing public transport fares, yielding annual direct benefits of around $70 million, it says freeing up road space would offset some of those savings by inducing extra car trips.

"The introduction of free fares represents a costly means of 'buying' patronage," the report says.

But council member Robyn Hughes expressed disappointment that the report did not cover social, environmental and health benefits from free public transport and fewer vehicles left on the roads to pollute the air and waterways.

Council chairman Mike Lee said that although free public transport held some attractions, it would mean paying $330 million a year to private bus companies at the cost of raising rates by up to 100 per cent.

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