Fare rise of 3pc can really mean 50pc

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Inner city Wellington bus users will be hardest hit by fare increases rubber stamped this morning.

Greater Wellington regional council has recommended raising fares from September, to generate a revenue increase of three per cent.

At a meeting this morning, the council approved a set of three recommended options, which will now form a starting point for negotiations with bus operators.

Among the proposed changes, the one-zone cash fares - currently $1.50 for an adult and $1 concession - will increase by 50 cents each.

That represents increases of 33 per cent and 50 per cent respectively.

The city section cash fare will go from $1 to $1.50.

The meeting heard the fare increases were needed to balance the books.

Brian Baxter, the council's public transport design and development manager, has recommended that the council not increase the fares that were included in a September 2008 fare rise.

Instead, it should focus on services not affected by the previous increase, particularly one-zone cash fares and the long-standing $1 bus fare to travel around downtown Wellington.

In a report to the regional council's transport and access committee meeting today, Mr Baxter says the increases are needed to balance rising costs and that any delay will mean steeper increases in the future.

"It's about getting the balance right between what the passengers pay and what the ratepayers pay by way of subsidy," he told The Dominion Post.

"What we are saying is that it's getting out of balance, the users aren't paying enough. And we don't want to have these big increases every couple of years, we'd rather have a small increase that's a bit more palatable."

The council says it will take the recommended increases to the public for consultation. If approved, they will be implemented in early September.

Fares last went up in September 2008 by an average of 10.2 per cent, as costs increased significantly – particularly on the region's rail system.

The 2008 increase affected mostly train passengers, and came two years after a 15 per cent average fare rise.

Public transport use declined slightly last year, with rail patronage falling by more than 8.5 per cent last September.

The council's rail-operations expenditure is forecast to hit $27.5 million, $2.5m over budget.

Those most affected by the recommended increases would be train passengers who catch a bus between the city centre and Wellington railway station as part of their commute, and those who catch the bus for short trips downtown.

"They didn't get an increase last time, so to some extent that balances things out a bit," Mr Baxter said.

One option would mean the $1 city-section fare would be replaced by an increased one-zone cash fare of $2.

That would effectively mean inner-city bus passengers were facing a 50 per cent increase in bus fares.

Passengers would be able to get cheaper fares if they used Snapper cards or multi-trip tickets.

THREE RECOMMENDED OPTIONS

* Increase the one-zone cash fares (currently $1.50 for an adult and $1 concession) by 50 cents each. That represents increases of 33 per cent and 50 per cent respectively.

* Drop the $1 city-section fare, and replace it with an increased adult one-zone cash fare of $2. That represents a 100 per cent increase.

* Increase both the $1 city-section and $1.50 adult one-zone cash fare by 50 cents. That represents increases of 50 per cent and 33 per cent respectively.

- © Fairfax NZ News