- The GWRC is changing how the Transport Rates that fund the regions PT service is allocated to ratepayers. They claim that this change means “Hutt Valley, South Wairarapa and Porirua pay a bit less toward public transport than they do now, while residents in Wellington city, Kāpiti and Masterton pay a bit more”.
Post Location: <span>New Zealand</span>
Background to the GWRC Transport Rate
Providing public transport (PT) services is one of the most important services provided by the Greater Wellington Regional Council (GWRC). The council funds its PT services from Targeted Rate called the “Transport Rate“that provides about half the PT subsidies with the balance provided by matching funding from the New Zealand Transport Agency (NZTA). … Read more ...
The Greater Wellington Regional Council (GWRC) claims Wellington public transport commuters needs a fare increase to fund cost increases. So what happened to the many millions in cost savings they previously announced when they awarded the rail service to TransDev and most of the bus services to Transit ?… Read more ...
- In the Farebox Recovery Calculations, Rail Operating Costs have increased by $17.9M.
- However, only $8.4M of rail costs were funded as Direct Operating Costs in 2017/18
- Over half the $17.9M rail operating cost increase is from an additional rail cost item.
- The new fares will lead to a net loss of $3.0M in Bus Fare Revenue and $2.7M in Rail Fare Revenue.
- Bus fare revenue is paying a much higher percentage of bus operating costs than rail fare revenue is for rail costs This means that for every $1.00 a Wellington bus user pays in fares, 9 cents will be going towards the cost of rail services.
- In 2016 the GWRC announced it expects a multi-million dollar PT cost saving from its new passenger rail PTOM contract with TransDev.
- In 2017 the GWRC announced it also expects multi-million dollar PT cost savings from its new bus PTOM contracts.
- The 2018/19 Fare Review reported these Farebox Recovery Ratios: Rail 49.9%; Bus 59.6%; Total 55.1%.
- The report recommended a 3% fare increase is needed.
- The supporting spreadsheet based these ratios on the following: Rail Revenue: $51.4M; Rail Cost: $103.1M; Bus Revenue: $50.3M; Bus Cost: $84.4M.
- This 2017 Fare Structure Review recommended a range of fare changes including for students, free transfers for buses and free buses for rail monthly pass holders outside Wellington City. These fare changes will lead to a $7.5M fare revenue loss.
- Therefore the review included compensatory a 3% fare increase to recover $2.1M in extra revenue
- The supporting spreadsheet contained the detailed modelling behind the new fares and confirmed the 3% fare increase was based on PT costs remaining the same as 2017/18 at $192.3M.
- The 2017/18 fare review reported these Farebox Recovery Ratios: Rail 57.3%; Bus 59.3%; Total 58.2%.
- The review recommended no fare increase is needed.
- Surprisingly, the supporting calculation spreadsheet had different Farebox Recovery Ratios: Rail 59.3%; Bus 56.0%; Total 58.2%.
- The supporting spreadsheet based these ratios on the following: Rail Revenue: $50.5M; Rail Cost: $85.1M; Bus Revenue: $57.7M; Bus Cost: $103.1M; Total PT Revenue: $112.0M; Total PT Cost: $192.3M.
- The GWRC has its own Farebox Recovery Policy to comply with the NZTA National Farebox Recovery Policy.
- The GWRC Farebox Recovery Policy currently states that fares must contribute between 55% and 60% of the direct operating costs of the region’s bus services; 55% – 60% of rail services and 55%- 60% of the public transport network as a whole.