A missed chance on transport

The reaction to Budget 2022 has been surprisingly muted. Even thosewho find things to praise sound disappointed. But some criticisms are more valid than others.

There is a view that the headlinegrabbing handout of $350 to the working poor and the so-called ‘‘squeezed middle’’ is less effective and enduring than other proposals to bring people out of poverty, such as raising benefits or taking GST off food. Even the centrist Liberal Democrats in the UK have been making a case for cutting VAT to lower the cost of living. But in New Zealand, such an idea is still treated as political extremism.

Another valid criticism is the approach to public transport. Fares were halved for three months from April 1 in ameasure designed to fight the cost of living crisis. A cut in the tax on fuel was another.

As well as easing financial stress, half-price public transport had the happy side effect of reducing emissions by pulling people away from cars and putting them on buses, ferries and trains. If we are to take the reduction of poverty and the ‘‘nuclear-free moment’’ of climate change as Prime Minister Jacinda Ardern’s two big political visions, this simple measure was a step towards achieving both. It was relatively inexpensive as well. The Government said subsidised fares would cost between $25 million and $40m for three months.

In Wellington it was found that, while public transport use is still below pre-pandemic levels, patronage went up by a third after April 1.

It was inevitable that some hoped it would continue.

Local Government New Zealand (LGNZ) also wanted that. While councils all over New Zealand saw increased patronage, LGNZ argued three months was not long enough to create lasting behaviour change.

reported that the much bolder step of making public transport free was also discussed, but was less likely. Yet free public transport is not as utopian as some claim. Along with the obvious benefits, it has been shown that free public transport increases social involvement and wellbeing.

AWaka Kotahi NZ Transport Agency survey in 2009 revealed the changing attitudes of Gold Card users who travelled for free at offpeak times. They reported theywent to more events and worked and volunteered more. They were keeping active and 39% said they were enjoying life more.

Surely free public transport, especially for young people, students and those on benefits, would promote similar levels of social cohesion and wellbeing, along with easing the cost of living.

It has been estimated, albeit roughly, that entirely free public transport would cost $320m per year. GreenMP Chlo¨e Swarbrick compared that to the $350m cost of a short-term cut in petrol prices.

In the end, the Government picked amore cautious option. Halfprice fares were extended for two months, and made permanent only for those with Community Services Cards. The car remains king.

Of course, public transport does not suit everyone in every situation.

But as the Government’s own information shows transport accounts for 17% of our greenhouse gas emissions, it is hard to escape the feeling that Budget 2022 missed a significant opportunity.