Mayors baulk at transport subsidy burden

By WAYNE THOMPSON

Auckland's smaller local authorities are getting nervous at the soaring cost of public transport.

Rail, bus and ferry services in the region are expected to need an 86 per cent rise in subsidies from ratepayers and taxpayers in the next four years.

Public transport running costs are subsidised at present by $54.5 million a year but this is expected to be $101.5 million by 2006, and an average $107 million in the years to 2012.

Smaller councils, such as Rodney and Franklin, say they face an intolerable rates burden to subsidise public transport - without getting more services to compensate.

The increase in subsidies is revealed in a confidential draft business plan on the regional rail upgrade project. It was prepared by the Auckland Regional Council and the Auckland Regional Transport Network Ltd for the region's mayors and Infrastructure Auckland.

Rail subsidies are forecast to treble to $25.3 million in 2006 when the project aims to have modern trains serving modern stations every 10 minutes at peak time.

By 2007, rail running expenses will hit $42 million a year, compared with $8.2 million this year.

The outlook becomes even more gloomy if Infrastructure Auckland does not provide $166 million towards new trains.

Regional council chief executive Jo Brosnahan said the council was anxious that the cost to the ratepayer did not become excessive, and it had asked businessman Sir Ron Carter to review the plan.

But there were other unknowns apart from the Infrastructure grant.

One of these was how much help the regional council would get from Transfund New Zealand, which is reviewing its funding policy.

Auckland residents would pay subsidies through their ARC levy, to be directly rated next year, and general taxation.

The present ARC transport levy of $36.2 million is expected to rise to $40.7 million in 2004.

Rodney Mayor John Law has calculated that Rodney ratepayers will pay nearly $27 million towards region transport costs over the next decade.

"Our ratepayers should not contribute $1 because they are not getting anything extra for it."

Franklin Mayor Heather Maloney said her district was to gain one train and five bus services from the improvement plan, so she did not expect Franklin's share of transport costs to be too much.

The Deputy Mayor of Waitakere City, Carolynne Stone, said she hoped the business plan was just a draft.

North Shore Mayor George Wood said people were concerned at the subsidy levels it indicated.

ARC chairwoman Gwen Bull said Rodney would share in improvements to public transport, especially when residents visited the city.

Further reading:
Feature: Getting Auckland moving

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