Congestion levels in the country’s three largest cities could worsen if the Govt pushes ahead with plans to require regional councils to raise public transport fares to generate a greater share of bus, rail and ferry costs from users. Auckland Regional Transport Committee staff have warned councillors the resulting congestion could cost the region twice as much as the revenue raised from higher fares. Auckland Regional Council transport group manager Don Houghton warns “It would push more people into cars and increase congestion, the costs of which would be roughly double that of additional fares.”

NZ Transport Agency wants to introduce a new farebox recovery policy to improve the effectiveness and efficiency of public transport services and ensure costs and benefits are fairly apportioned between users and non-users. One of the proposed options is the Auckland, Wellington and Canterbury regional authorities set recovery targets from passenger fares at no less than 50% of the cost of services. Although Wellington already recovers 51.5% of its costs, fares across Auckland public transport users directly contribute just 43.6% of the cost while for rail passengers the proportion is just 34%.

The Auckland Regional Transport Agency has indicated a likely need for rail fares to rise in February in response to the proposed new policy but has yet to calculate the likely increase. However, Manukau City Council member David Collings says he has heard from his city council staff fare rises of up to 20% are possible. A regional council staff report describes the principle of a farebox recovery ratio target, in isolation from other considerations, as a particularly “blunt and unhelpful measure.”

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