Greater Wellington Regional Council considers 10 per cent fares increase for trains and buses

Without a 10 per cent fare increase, it's estimated the regional council will have to push rates up by 3.3 per cent. Photo / Mark Mitchell

A controversial decision lies ahead for Greater Wellington Regional Councillors this week: either increase fares for public transport or push rates up further than anticipated.

The council will on Thursday be asked to note that a fare increase of at least 10 per cent is required on trains and buses. The extra money is expected to partially cover an increase in public transit costs, said to rise by approximately 19 per cent in the next financial year.

If implemented, a commuter travelling into the city and back from Miramar five days a week would pay an extra $4, while someone travelling between Masterton and Wellington would be forking out an extra $16.

The proposed decision comes as it’s revealed buses will have to replace trains on most weekends and public holidays for the next ‘10 to 15 years’ in the Wellington region due to a backlog of renewal and maintenance work.

In addition, the Wellington region’s Wairarapa Line is facing months of delays, after new tracks signed off in December were subsequently found to be too narrow for the carriages travelling on them.

Greater Wellington Regional Council chair Daran Ponter blames inflation and escalating expenses for the “stark decision” around fare increases.

“Like all councils, we’re caught between a financial rock and a fiscal hard place,” Ponter said.

Greater Wellington Regional Council chairman Daran Ponter. Photo / Mark Mitchell

Ponter added the council would never consider an increase of this size “if we weren’t also faced with tough choices about raising rates and cutting spending in this year’s Long Term Plan.”

The meeting’s agenda suggests increasing fares by 10 per cent would decrease public transit patronage by 400,000 but would bring significantly more revenue to the regional council’s books.

Metlink estimates a further 3.3 per cent rates hike would be necessary, if the 10 per cent fare increase is not agreed to.

Greater Wellington Regional Council Transport Committee chair Thomas Nash says they have deliberately kept fare increases below the level of inflation over the past few years “to protect people from cost-of-living pressures”.

Nash warns the cost of public transport has gone up “significantly” while fares have not kept up.

Greater Wellington Regional Councillor Thomas Nash. Photo / Azaria Howell

Despite the proposed hike, Nash is highlighting the benefits of using public transport, saying a 10 per cent fare increase would still leave public transit journeys “competitively priced” compared with using private vehicles - when you take into account the cost of fuel, parking, insurance and maintenance.

Nash acknowledged it’s going to be a hard decision.

“I don’t want to be putting fares up,” he said, adding the regional council wants to grow its services, and, without a significant Government cash splash, the alternative to increasing fares is for the network to “decline”.

The regional council has confirmed that, despite Thursday’s decision, it plans to continue keeping off-peak and weekend fares on the Metlink network half price, and keeping the discount for Community Services and Total Mobility card-holders.

A fare increase of 6 per cent was agreed to in the 2023 financial year, after two years without pushing the cost up for consumers.

The regional council’s agenda states, if agreed to, the decision will come into force from July 1.

Azaria Howell is a Wellington-based multimedia reporter with an eye across the region. She joined NZME in 2022 and has a keen interest in city council decisions, social housing and transport.