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Labour pledges $20 weekly public transport cost cap in biggest cities, $10 elsewhere in New Zealand

Public Policy / news
Labour pledges $20 weekly public transport cost cap in biggest cities, $10 elsewhere in New Zealand
[updated]
A train pulls into Auckland's Mt Albert railway station.
A train pulls into Auckland's Mt Albert railway station. Image source: Unsplash

Labour is promising a public transport fare cap at $20 a week in the country's three biggest cities and $10 for the rest of New Zealand.

The election campaign promise would give travellers on buses, trains and some ferries unlimited usage with a cost cap at $20 in Auckland, Wellington and Christchurch and a weekly cost cap at $10 elsewhere.

The party has costed it at $65 million a year, and InterCity buses, Capital Connection, Te Huia, Mainlander and Waiheke ferries are not included.

Labour leader Chris Hipkins said should Labour come into power at the next election, the policy would kick in from mid-2027

"Once a commuter has reached their fare cap, every additional trip that week is free," he said.

The party's transport spokesperson Tangi Utikere said they wanted people catching buses, trains and ferries "more often because that means lower household transport costs, less congestion on our roads and stronger public transport networks".

National’s Campaign Chair Simeon Brown described the promise as Labour "once again trying to bribe New Zealanders with their own money".

"This is yet another spending promise from the Labour Party with no plan for how they’ll pay for it."

“The National Land Transport Fund is already oversubscribed. The idea of siphoning a quarter of a billion dollars from the NLTF to pay for this is fanciful. Ultimately this policy will require higher taxes or more borrowing," he said.

“This comes on top of billions of dollars in other spending promises they have made with no way to pay for it – such as restoring pay equity, unwinding public sector savings, and how they will pay for their Future Fund."

If he could ensure that the $65m a year would cover the additional patronage the policy could result in, Utikere said, "based on the information we have, yes".

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4 Comments

Sounds fair.

65+ free.

Rural schools free.

Urban schools kids have to pay. 3 kids can be $100 a week plus for doing the right thing and getting them to take the bus

 

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"Simeon Brown described the promise as Labour "once again trying to bribe New Zealanders with their own money"."

Or, it could be showing some leadership? Something Simeon is paid to do? Could even fill up some of those half empty buses and result in better utilisation of infrastucture already in existence?

Free up space on roads making Nats obssession with spending money on asphalt even less defendable. Hmm?  Bribing NZers with their own money huh Simeon.

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Agree, it’s quite possible that Labours policy could save money if less roads need to be built. In line with the more sensible Brown’s strategy of making better use of what we already have. And the buses are being electrified rapidly these days, so could help achieve climate targets too. 
Building multi billion dollar highways is also bribing people with their own money. And there is no way we can possibly pay for all their promised roads! 
Once the CRL opens people will realise how good public transport can be. This election might be good timing for Labour. 

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I wonder if Labour will announce several similar cost of living policies. Could be a vote winner compared to National’s policy of “trust us it will improve next year” 

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