Source: Radio New Zealand
Diesel prices had been costing Wellington’s public transport provider, Metlink, an extra $130,000 per week. RNZ / Rebekah Parsons-King
Wellington’s public transport authority is warning passengers could face service cuts or costlier fares due to soaring diesel prices, and is calling for government intervention.
And Local Government New Zealand says diesel prices are a huge concern for councils around the country operating large public transport networks.
Greater Wellington Regional Council Chair Daran Ponter said he had written to the Finance, Transport and Associate Energy Ministers about steps the government could take to encourage public transport use.
Ponter said escalating diesel prices had been costing Wellington’s public transport provider, Metlink, an extra $130,000 per week.
Waitomo’s chief executive told Morning Report people should start seeing relief at the pump due to a ceasefire between the United States and Iran, but motorists have been concerned prices could reach more than $4 a litre.
Ponter said prices were uncertain, and could stay high for some time despite the ceasefire.
“We’re asking the government to think about fare discounts, and maybe targeted fare discounts.”
He said he had also asked the government to encourage public servants to travel to and from work outside of peak hours.
Ponter said the council would do everything it could to avoid higher bus fares, including borrowing money in order to spread costs over a longer period.
He hadn’t asked for projections on how much transport fares could increase if diesel prices remained high.
“I don’t want us to have to apply further increases to fares because of the fuel costs that we are facing.
“So the answer has to lie somewhere between us and government rather than us and the people that we carry on our buses and trains every day. I don’t want them paying any more money than they currently are.”
Lower-patronage routes in the Wellington region would have to be scrutinised for potential service cuts if the situation didn’t improve, he said.
Bus and train fares are already set to increase from May 15 by 3.1 percent, and some services are already looking at being cut from July 1, Ponter said, due to changes over the private share – the share of how much users and the government pays for public transport.
But Ponter said that context would only get worse without government intervention.
He said about 75 percent of the region’s buses used diesel, and the costs had put pressure on the council.
Local Government New Zealand President Rehette Stoltz said diesel costs were a “huge concern” for councils throughout the country.
“It is definitely a concern for councils who operate huge public transport networks – let’s think of Auckland, Christchurch, Wellington. I think Christchurch alone uses 70,000 litres of diesel a week, because they have an extensive public transport network.
“So yes, it is a huge concern to councils because their operating costs have increased significantly.”
Gisborne’s bus operator had not raised concerns about fuel costs so far, but Stoltz said she would not be surprised if the issue came up soon.
Discussions around government support were something councils would be putting towards ministers and would be a case-by-case decision, Stoltz said.
The government has been approached for comment.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
