Table of Contents
Summarised by Centrist
Labour claims its public transport fare cap would save the “average” commuter about $25 a week and benefit “hundreds of thousands” of people.
Weekly fares would be capped at $20 in Auckland, Wellington and Christchurch, and $10 elsewhere.
However, Labour’s transport spokesperson conceded the benefit would not reach hundreds of thousands of people every week.
Labour points to about 1.3 million New Zealanders who use public transport at least once a year, but transport spokesperson Tangi Utikere conceded many would benefit only occasionally rather than receiving the advertised savings every week.
Labour estimates average weekly savings of $30 in Auckland, $25 in Wellington and $10 in Christchurch, although the actual benefit would depend on how often people travel and which routes they use.
Some of the largest subsidies could go to expensive services. A Wellington East-by-West ferry commuter currently paying $110 a week could pay just $20, leaving taxpayers to cover the remaining $90.
Utikere also confirmed he had not read Ministry of Transport advice warning broad fare subsidies were inefficient and could benefit many people who did not need support.
Questions remain over the policy’s $65 million annual cost, whether councils could reduce their own subsidies, and where the money would come from. Utikere pointed to road-maintenance savings and a reassessment of road-building priorities, while indicating Labour would honour major projects already contracted.
