New discounts for public transport users in Wellington region could cost ratepayers

Monday, 8 May 2017

Monthly rail pass holders are among the winners of Greater Wellington Regional Council's proposed new fare discounts.

A big shake-up of Wellington's public transport fares could see tertiary students, under-19s and monthly rail pass holders end up with more money in their pockets - but at the possible expense of ratepayers and taxpayers.

After years of lobbying from students, Greater Wellington Regional Council has finally agreed to consider a 25 per cent discount for tertiary students on all buses, trains and ferries across the region.

Getting the bus to and from Wellington's Victoria University could soon be a lot cheaper, after the regional council proposed a tertiary student discount.

Council staff have also proposed to give all monthly rail pass holders across the region free connections on to buses that feed Wellington city. Only some monthly pass users in the Hutt Valley, Wairarapa and Kapiti can do this currently.

Other proposed changes include the council making good on an earlier promise to introduce free bus transfers, discount all off-peak fares by 25 per cent, and give everyone under the age of 19 half-price travel.

Free transfers could be just around the corner for Wellington's bus network, but at what cost to the region's ratepayers?

Greater Wellington regional councillor Barbara Donaldson says student pressure led to the proposed tertiary discount.

* Bus fares aren't fair, student says

* Mayor says ratepayers could subsidise student fare discount

Wellington Mayor Justin Lester says the city's ratepayers could end up helping fund the tertiary student discount.

* Are public transport users in Wellington paying too much?**

But the question remains about where the money to fund these discounts will come from if an increase in public transport patronage does not cover it.

In a report that will be considered by the council's sustainable transport committee on Tuesday, its staff have floated the idea of an across-the-board increase to ticket prices, which have been frozen for the past few years.

If councillors don't want to hike prices to cover the shortfall then a regional rates increase or a greater subsidy from the taxpayer will be needed, unless the council can peg back the cost of providing public transport to the region.

Greater Wellington has a current target of recovering 55-60 per cent of public transport running costs from its users through ticket revenue, which nets about $100 million. Staff say this new fare policy may require it to dial back those expectations to 50 per cent.

The public will be given an opportunity to weigh in on the proposals before councillors make a final call in October. If approved, the new fares and discounts will kick in from July 2018.

Regional councillor Barbara Donaldson, chairwoman of the sustainable transport committee, conceded on Monday that the council was responding to student pressure by putting a tertiary discount proposal on the table.

'They have been pushing for this for a long time. So yes, obviously, when we get these sorts of requests we have to look at it seriously.'

In a statement, Victoria University's chief operating officer Mark Loveard said the university supported a tertiary discount, as its growth was being threatened by the current shortage of student housing in Wellington.

'This [discount] will enable students to access a wider catchment of housing.'

But while the university was 'open to exploring options', Loveard did not say whether it would help fund a student discount, as tertiary institutions in some other cities do.

'The process needs to be led by the GWRC … and they need to involve all the tertiary education providers in the region.'

A Massey University Wellington spokesman said it was behind the move.

'It depends on the detail, but we're supportive of anything that reduces the costs of our students and has a positive environmental impact.'

Wellington Mayor Justin Lester, who has previously said his city council would explore financial help for cheaper tertiary fares, said on Monday the two councils were committed to achieving the 25 per cent discount.

'I've had discussions with the regional council within the last month, and we're both committed towards achieving that.'

Speaking personally, he said he ultimately wanted to raise the student discount to 50 per cent.

STUDENT FARES ELSEWHERE

* Tertiary students in Auckland have qualified for a discount of at least 35 per cent for more than 20 years, funded by the city's ratepayers.

* Massey University students in Palmerston North ride for free thanks to financial contributions from Horizons Regional Council, the New Zealand Transport Agency and the Universal College of Learning.

* The University of Waikato subsidises a 30 per cent public transport discount for its students.

* In Dunedin, tertiary students are eligible for a 33 per cent discount, but the university does not subsidise this.

* There is no targeted tertiary discount in Canterbury, but there are other discounts available to all commuters, which are funded by the regional council and transport agency.