Fare subsidy’s future set to be revealed
WELLINGTON: The thousands of people who use public transport every day could soon find out if the halfprice fares they are enjoying now are here to stay.
The Government brought in the threemonth price cut in response to the soaring cost of fuel. The cost of the threemonth fare reduction is estimated to be between $25 million and $40 million.
Key ministers have already hinted the subsidy could become a permanent subsidy and signalled public transport would feature in next week’s Budget and Monday’s announcement on cutting greenhouse gas emissions.
Transport Minister Michael Wood said this week ‘‘we’re considering the future of that’’.
Such a move would have the Green Party’s support.
MP Julie Anne Genter said the Government should go further, by making public transport free.
‘‘It makes sense to make public transport affordable. It means that we use our buses and trains better.
‘‘It takes cars off the road. It helps reduce emissions.’’
The Maori Party wants public transport to be free, too.
Coleader Debbie Ngarewa Packer said ministers should also consider making it more accessible.
‘‘The reality is, we saw during the public health response various communities that couldn’t access some of the services because . . . it was unaffordable and there was also simply no connector for them.’’
Since the introduction of lower fares, there have been 50% more bus and train trips in Auckland, and a 30% increase in Wellington.
But it is not clear if that is because of the cheaper price or simply people returning to the office after the Omicron outbreak.
National Party leader Christopher Luxon has said the case for ongoing public transport subsidies does not stack up.
‘‘Ultimately, public transport needs to stand on its own feet. It can’t be subsidised or underwritten . . . It has to be able to build on its own case,’’ he said.
National transport spokesman Simeon Brown said he wanted to know what was behind the surge before deciding his position.
‘‘I’m keen to make sure we’re investing in better public transport services, not just utilising the limited resources that are available just to make it cheaper for the people already using it.’’
Act New Zealand MP Simon Court said his party did not want the subsidy to continue beyond three months.
‘‘Actually, we should give all taxpayers a tax cut, particularly those on middle incomes. And our carbon dividend, which will return funds from our emissions trading scheme, is the best way to give Kiwis choice about what they do with their transport budget.’’
Whether the halfprice fares continue will be revealed next week.
Climate Change Minister James Shaw has signalled the subsidy could feature in the emissions reduction plan, which is coming out on Monday. — RNZ