Fare increases 'could lead to worse congestion'

Auckland transport chiefs fear a proposed Government requirement to recover a greater share of bus, rail and ferry costs from fares will push passengers into cars and worsen congestion.

The Auckland Regional Transport Committee received a warning from staff yesterday that the resulting congestion could cost the region twice as much as the revenue raised from higher fares.

"It would push more people into cars and increase congestion, the costs of which would be roughly double that of additional fares," Auckland Regional Council transport group manager Don Houghton told the committee.

His concern, shared by most committee members, is over a national Transport Agency proposal to introduce a new farebox recovery policy aimed at improving the effectiveness and efficiency of public transport services in New Zealand and to ensure costs and benefits are fairly apportioned between users and non-users.

An agency discussion paper, for which submissions close at the end of this month, offers two options for regional councils to set farebox recovery-ratio targets.

But one of the options proposes that Auckland, Wellington and Canterbury transport authorities set recovery targets from passenger fares at no less than 50 per cent of the cost of services.

Although Wellington already recovers 51.5 per cent of its costs, fares across Auckland public transport services account for just 43.6 per of the bill,

and rail passengers pay only 34 per cent.

The Auckland Regional Transport Agency has indicated a likely need for rail fares to rise in February in response to the proposed new policy. It has yet to calculate by how much.

But Manukau City Council member David Collings told the regional transport committee, of which he is an alternate member, he understood from his officers that passengers may be in for fare rises of up to 20 per cent.

Mr Collings said it was unfair to compare Auckland transport costs with those of Wellington, which had more "linear" routes without so many bridges and harbourside constraints as in the Queen City.

Committee chairwoman Christine Rose said Auckland paid KiwiRail track access charges not levied on Wellington.

A regional council staff report described the principle of a farebox recovery ratio target, in isolation from other considerations, as a particularly "blunt and unhelpful measure".

"It appears to be driven by a desire to manage NZTA [Transport Agency] costs with no recognition of the contribution made by public transport to wider issues such as more sustainable urban form, reducing congestion, reducing emissions, supporting economic productivity, providing greater resilience against system shocks such as increasing oil prices, and social inclusion."

Mr Houghton said it was important for the committee not to be seen as opposing cost effectiveness, but the proposed policy did not acknowledge the role of public transport in areas such as reducing greenhouse gas emissions and supporting economic productivity by getting people to work.

Papakura District representative Caroline Conroy feared a specific cost recovery requirement would hamper the provision of public transport to new subdivisions.

Fair fares

Regional farebox recovery rates in 2007-08 as a proportion of service costs (source: Transport Agency)

* Auckland43.6 per cent
* Northland36.9 per cent
* Waikato29.5 per cent
* Bay of Plenty25.9 per cent
* Gisborne61 per cent.
* Wellington51.5 per cent
* Canterbury41.1 per cent
* Southland8.6 per cent