Councils up for extra bus costs

By KEVIN TAYLOR, political reporter

Regional councils face having to pay more towards subsidising public transport if a Transfund proposal for changes to bus and ferry financing is introduced.

The Government wants to cut the amount it ploughs into public transport, but says it remains committed to financing continued growth.

Government contributions to buses and ferries have almost doubled from $36.3 million in 1998-1999 to $71.2 million in 2002-2003.

Transfund yesterday issued a discussion paper on a new passenger transport scheme.

The review will cover Transfund's assistance to regional councils for subsidising the cost of bus and ferry services.

Transport Minister Paul Swain said Transfund was seeking ways to pay for the huge long-term growth in passenger transport.

"The Government has said it is committed - absolutely - to continued growth funding for public passenger transport," he said.

"We have to continue to get more people off the roads than we are at the moment.

"What the discussion is about is the formula by which we achieve it."

The Transfund document reviewed a number of options, he said, but the final decisions were for the Government.

Greens co-leader Jeanette Fitzsimons said the party would work closely with Mr Swain and the Government over a response to the document.

The party was anxious to make sure the brakes were not applied to public transport.

"What I will be trying to make sure is that any changes in the funding package don't cause the growth in public transport use to drop off, falter or stall.

"Every one of those new passengers on public transport is a car that's not on the motorway at peak times in Auckland."

Ms Fitzsimons said the funding scheme was a faster and cheaper way of reducing congestion than building new motorways.

The 24.9 per cent increase in public transport use over the last three years had exceeded everyone's expectations.

She said she wanted to ensure the funding system continued to encourage growth in public transport.

Mr Swain said all the current growth had been paid for by Transfund.

Local authorities had always known that the funding system would be reviewed, and that it was unsustainable in its present form.

Decisions on the review would not be made until late this year or early next year.

The present scheme continues until June next year.

The scheme has given regional councils an incentive to increase the number of people using public transport - the more journeys made, the more money Transfund provides.

Auckland Regional Council chief executive Jo Brosnahan said she had not seen the Transfund document, but knew of it.

The council was already dealing with the cost of increased public transport patronage, she said.

The cost to the council of transport services - excluding Transfund contributions - is expected to rise from $37.9 million now to $55.4 million in the 2003-2004 financial year.

Public transport patronage has risen 7.5 per cent annually in the Auckland region for the past three years.

The number of central city bus passengers has risen 25 per cent since last year.

Finding a formula

* The Government and Transfund are reviewing the bus and ferry public transport funding formula.

* The Government's contribution to patronage funding has risen from $36.3 million in 1998-1999 to $71.2 million in 2002-2003.

* The number of trips taken on public transport is up 24.9 per cent nationwide since 2000.

* In the Auckland region, public transport passenger numbers have risen 7.5 per cent a year for the past three years.

* Decisions on the review are not expected until late this year or early next year.