22 May 2008
by Imran Ali
A 50 per cent fare increase on Whangarei buses after NZ Bus takes over the city service from July 1 was approved by the Northland Regional Councillors yesterday.
The boost was needed mainly because of ever- increasing fuel prices coupled with the introduction of new buses, more trips and extended hours, the councillors heard.
Council chairman Mark Farnsworth said people needed to understand that fuel prices had almost doubled in the past six years whereas fares had remained the same.
Cr Bill Rossiter said the public should be informed about the new fares at least a month in advance.
NZ Bus has won a five- year contract worth $7.5 million to service Whangarei routes. It will replace Whangarei Bus Services, which has been running the existing service since November 2001 and carried its one millionth passenger last year.
The new bus service will be funded through annual contributions of $388,141 each from the NRC and Land Transport New Zealand.
A shortfall of $712,717 will be covered from fare revenue.
The NRC will contribute $100,000 in the year to July 2009 and next year it will take over funding of the bus service from the Whangarei District Council.
The NRC will also look at introducing either a targeted regional rate of about $11 per property within the whole district, or $22 for properties in the urban areas to help fund the bus service.
However, a decision on whether all or part of the district will pay the targeted rate is yet to be made.
The new bus service is expected to carry about 300,000 passengers in the first year with numbers rising over the contract period.
Passenger trips have increased from 80,000 in 2002 to over 230,000 at present.
News of the new fares has not gone down well with regular bus commuters, especially those who are either unemployed or beneficiaries.
However, the NRC said that, even with an increase, fares would still be affordable and cheaper than running private vehicles.
Patronage of the new service will be monitored on a monthly basis to gauge public reaction to it.
If patronage does not meet expectations, or those on low incomes unduly affected, then charges such as stepped fares (zoning) and/or providing special concessions may be considered.
Copyright 2008 APN New Zealand Ltd - Regionals.
Northern Advocate
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