Free public transport costs NZTA $110m
The NZTA has forked out $110 million to keep public transport running during Covid-19 restrictions, picking up the tab for Auckland Transport and councils across the country.
The NZ Transport Agency is funding the full cost of fallen fare revenue and Covid operating costs until the end of this month, but is yet to commit to topping up councils after that.
Worst-case scenario forecasts from some councils show revenue could fall by as much as 40 per cent into July and the ensuing months.
Without more NZTA help their options include debt funding, which could result in rates hikes, or reducing services, which could cast doubt on the viability of some cities’ systems.
Usually about 40 per cent of public transport costs are met by fares. The rest is funded from rates and the National Land Transport Fund.
But patronage and fare revenue dramatically dropped when lockdown began in March.
No fares were charged during levels 3 and 4 as a safety measure and for essential workers to get to their jobs. But it’s not just the loss of patronage that’s put the pressure on councils. They’ve also faced increased operating costs.
These include increased cleaning requirements, PPE supply and bringing in extra services to make up for physical distancing rules.
An NZTA spokesperson said the organisation was still working with councils to understand the likely revenue gap for the 2020/21 year and determine how much more money would be required from July.