As expected, the Greater Wellington Regional Council announced the fare increases coming into effect as of September 1st, 2008. The justification for the changes is the increased operating costs.
Our bus operating contract has cost us $2.4 million more this financial year, due largely to oil prices, and is estimated to increase a lot more next year for the same reason. Our rail operating contract has cost us $2.5 million more this financial year, largely because of higher labour-related costs. We’re also paying more to maintain our infrastructure such as bus shelters, car parks and trolley bus overhead wires.
The increases listed cover zone-based travel within the region. It’s good to see that the short trips are not changing in price. For regular commuters, though, the extra costs will add up quickly. Monthly bus passes are not listed in the schedule, but I’ve been assured that they will see the increase as well.
The Gold and Platinum passes are products that the operators offer and set the price on (they are not specified by us). The operators are increasing the prices of these in line with general fares on 1 September, to $99 and $180 respectively. Our web site will be updated to include all fare products by tomorrow.1
The fare increases were opposed by Councillor Paul Bruce, but he was unable to sway the decision. With the higher price of petrol at the moment, there is a shift towards public transport modes becoming apparent. Increasing the fares will push back at commuters who are considering leaving the car at home, which is unfortunate. However, according to the Q&A page, there is a silver lining:
17. If patronage is increasing, doesn’t that mean that Greater Wellington is receiving more money to pay for the cost increases?
Patronage is increasing, but not at a rate fast enough to off-set the cost increases. And patronage increases bring their own costs, with extra vehicles and services being needed to meet the increased demand.
Well done, GWRC, on avoiding those extra costs of increased demand.
Where is the extra money to go? Are users expected to get any better service for the extra money going into the system? Well, no.
14. Why not raise fares when significant public transport improvements have begun?
Fares are going up to meet increasing costs, not to fund improvements. Greater Wellington is facing hefty cost increases to merely keep current services operating.
Service is not at a standstill, though. There is capital funding coming from Central government to help with service quality, with a small portion coming from fares. There have been noticeable service improvements to both train and bus services since the fare increases of 2006. Unfortunately, we’re still waiting on some major usability issues: integrated ticketing and real-time information.
Amongst other things, users have contributed through fares to general service enhancements, the new Wairarapa trains, the new trolley buses (which are gradually coming into service), and the real-time information project. The last of these is well underway – tenders are to be called later this year, with the system to roll out in 2010 (a user survey for this will appear on our web site in the next week or so). New electric trains have been ordered and will also start arriving from 2010. Integrated ticketing will be a little further away, but we are in the process of beginning the design of such a system.1
I find the time-delay for implementation to be disappointing, to say the least, but at least it is being worked on. I’m not holding my breath, however, on the integrated ticketing. Trying to get the separate bus companies to agree on cost sharing will be a nightmare.2
Looking to the future, we’re told that we should expect more increases like this one.
20. The last fare increase was in 2006 – is a fare increase going to be a regular two yearly event?
In future, fares will be increased annually so the level of increases can be kept to a minimum.
The issue of the 50 cent rounding will remain a challenge until electronic ticketing makes it possible to adjust all fares by a similar percentage if required. Until then, and until all zones are relative in price, fare adjustments will be lumpy. Every effort will be made to ensure that increases will be spread evenly over time and that those fare payers affected more than others one time will not be affected so much the next time.
I am not thrilled by this. The council seems very quick to collect funds from user charges. I believe that public transportation should be considered an essential service to be provided. Effort should be made from local and central government to bear a higher proportion of the operational costs. Again, will not be holding my breath.
A side note, only slightly related. I’d sent an email to Snapper asking about the future of monthly passes in light of the planned replacement of 10-trip concession cards with a smart device. They didn’t quite answer my question, and have yet to answer my request for clarification, but the reply seems valid for the near-future:
As of 14 July 2008 we will be replacing the 10 trip tickets with snapper in the future we will also change the passes. More information will be available closer to the time. Passes like Gold card will still be available.
1 Thanks to Doug Weir for answering my questions.
2 Why we can’t have a stronger regional transport authority that can mandate/arbitrate in cases like these is beyond me. My best guess is that we’re stuck with a weak-willed government which believes that the free-market genie will solve everything.
