Public transport funding scheme to be reviewed

11.45am

The Government will review the patronage funding scheme for passenger transport, Transport Minister Paul Swain announced today.

The scheme provides regional councils with an incentive to increase the number of people using public transport -- the more journeys taken, the more funding Transfund provides.

The scheme had been an outstanding success and was helping the Government meet its aim of getting more people on public transport, Mr Swain said in a statement.

However, the scheme would be reviewed and the Government had made no decisions on future funding arrangements, he said.

"The excellent results to date have been in line with the objectives of the New Zealand Transport Strategy. However, the current funding system was never expected to continue indefinitely."

The number of journeys taken on public transport had increased 25 per cent since 2000. In that time, there had been several major regional passenger transport initiatives, including improved bus services in Christchurch, Wellington and Auckland.

The existing scheme funds regional councils at a rate of 40 per cent of the cost of subsiding services that were operating before November 2000 and up to 100 per cent of the cost of new services that generate additional patronage above 1999/2000 levels.

"Under the new scheme, Transfund proposes to meet 40-50 per cent of the cost of subsidising core patronage and 60-75 per cent of the cost of attracting additional passengers," Transfund spokesman Simon Whiteley said.

"By removing the distinction between the way baseline services and new services are funded, the proposed scheme will give councils greater flexibility to develop the whole passenger transport system in conjunction with the transport operator industry," he said in a statement.

Submissions on Transfund's proposal close on 30 June 2003. Following input of ideas, the resulting scheme will come into effect on 1 July 2004.

Greens co-leader Jeanette Fitzsimons said her party would work with the Government to ensure any changes supported on-going growth in public transport use.

"It is important that any changes to funding do not put the brakes on that growth or reduce the incentives for looking at more than roading in transport planning," she said in a statement.

- NZPA