Go Bus has been taken over by Australian transport company Kinetic. Photo / Warren Buckland
Go Bus has been taken over by Australian transport company Kinetic. Photo / Warren Buckland
A transport competitor says the sale of a Hawke's Bay's public transport provider to an Australian company is not in the community's best interests.
The sale of Go Bus to an Australian firm has not gone down well with locals, who are unimpressed that a Hawke's Bay Regional Council contractto provide public transport now sends profits across the ditch.
The regional council, which was told of the Kinetic sale in early August and that there would be no operational changes, plans and co-ordinates regional transport.
Ngai Tahu and Waikato-Tainui sold Go Bus Transport Limited to Australian-based public transport company Kinetic in August for more than $100 million.
Nimon Buses general manager Katie Nimon, who stood as National's candidate for the Napier seat in the recent general election, said an Australian-based company owning the service isn't in the community's best interest.
"Yes it's owned by an Australian company and people's ratepayer dollars are going overseas - we agree that it's not that great for the region and we should be supporting local," she said.
"Government contracts and regional contracts are a race to the bottom and they always go for the cheapest prices and that is what you end up with."
Nimon Buses general manager Katie Nimon said the company has tried to takeover the urban bus service several times. Photo / Supplied
Acting HBRC transport manager Mary-Anne Baker said it would be "misleading" to say ratepayer contributions will go to Australia.
The public bus service is funded by fare-paying passengers, the council through a targeted rate and NZTA Waka Kotahi.
"The council has a 10-year contract with Go Bus that is valid until 2025 - when the council will reconsider public transport delivery options," she said.
Before Ngai Tahu and Waikato-Tainui bought Go Bus in 2014, it was owned by Australian private equity firm Next Capital.
Baker said Go Bus is still heavily involved in the community, despite no longer being New Zealand-owned.
"It's really important to note that 39 local bus drivers are employed by Go Bus Transport across 25 buses that are all serviced and fuelled locally," she said.
A bus user, who wished to remain anonymous, said she was unhappy money gathered from her rates and fares were Australia-bound.
"I'm a regular Go Bus user and I've only just found out about the sale. I'm not happy that my rates to council are now effectively heading to Australia," she said.
Nimon said her company has tried several times to take over the urban services routes, but fallen short at tender.
"A company [Kinetic] of that scale has a huge amount of volume efficiency and they're able to do things at a lower price because they are a business," she added.
Nimon buses are now tendering for school runs for 2022 onwards. If they lose those, Nimon said they may go for the urban service routes in 2025.
"It's a bidding war," she said. "We don't get to just take over the service, we have to go to tender for it and have the best price."
