Tranz Rail says price rise fair

By CHRIS DANIELS consumer reporter

Tranz Rail is defending its fare increase of 39 per cent on Auckland commuter rail services, saying it is the first increase in eight years.

Auckland Regional Council passenger transport planner Ken McLeod said rail ticket prices had been well below the maximum allowed for some time.

The council had lifted the ceiling for maximum prices on several occasions, but Tranz Rail had not increased its fares.

In 1991 the maximum fare for a five-stage adult ticket was $4.10, but Tranz Rail charged only $3.60.

Buses had been allowed to, and did, increase fares up to $4.60 in 1997, but Tranz Rail had not followed.

It was now doing so.

Bus companies have just successfully lobbied the ARC to approve a 10 per cent fare increase for them, saying the cost of fuel and spare parts had increased dramatically.

Companies do not have to charge the new fares, but cannot exceed them on services that are subsidised by the ARC.

Mr McLeod said Tranz Rail had also approached the council for approval to move to the new maximum negotiated by bus companies.

Tranz Rail spokeswoman Nicola McFaull said prices on the Auckland commuter service had not increased since 1992, which "is pretty incredible."

Fuel costs had doubled in the past year, she said.

The latest price rises brought Tranz Rail into line with the other Auckland commuter transport operations, though travelling by train remained cost-effective.