News > Fares increase from 1 October 2010

Posted on 28/06/2010 12:00am

Fare information has now been uploaded for the 1 October 2010 fare increase.

Below are some Q & A's about the fare increase.

When are fares going up?

Fares for buses, trains and the harbour ferry will go up from Friday 1 October 2010, the same day that the GST increase takes effect. The finalised fare schedule has been endorsed by Greater Wellington Regional Council, and the increases will have been negotiated with the various public transport operators.

When will the new prices for monthly and school term passes take effect?

The fare increases will take effect from Friday 1 October 2010. All fare products that are valid for first use before 1 October will be sold at the old price (including Runciman Commuter monthly, Kapiti Commuter monthly and all school term passes that are also valid for travel after 1 October). Passes valid for first use on or after 1 October, but bought before that date, will be sold at the new price. All tickets and passes bought from 1 October will be sold at the new price.

Why are fares going up?

For two reasons - firstly, because of the increase in GST, and secondly, to meet the increasing costs of providing public transport. These costs are shared by ratepayers, central government and passengers. Council’s policy is that fares should make up between 45 and 50% of the costs. An increase of about 3% in fare revenue is required to keep this balance.

How much are fares going up by?

The average increase is about 2.5% for GST, and a further 3% to cover the increasing costs. However some increases are higher. 

Cash fares increase by at least 50c per trip to take account of the GST increase. The city section and 1-zone fare, and zones 11-14 fares (which mostly affect Wairarapa travellers) are being increased more, to get the overall increase in fare revenue that we need. The city section cash bus fare will go up from $1 to $2, but a $1.50 fare will be available for stored value card users. The zones 11-12 cash fares will go up by $1 per trip and zones 13-14 by $2.

Stored value cards and multi-trip tickets, (10-trip and monthly tickets) for zones 4-10, increase by about 2% to take account of the GST increase.

Multi-trip tickets for zones 1-3 and 11-14 have been increased more to get the overall increase in fare revenue.

Why isn’t the fare increase an across-the-board percentage increase?

It’s not possible to increase all fares by a strict across-the-board percentage figure.

Greater Wellington’s policy is that cash fares must be rounded to the nearest 50c to make cash handling easy for passengers, train guards and bus drivers. It also speeds up bus boarding times. An increase of 2.5%, for example, on a $3 bus fare would amount to about $3.07, which does not meet current cash-handling requirements and our policy.

But the stored value card and multi-trip tickets for zones 2-10 have generally increased by only the amount of the GST increase, and thus represent better value for passengers.

How much are child fares increasing by?

Most single cash child fares will increase by 50c, except for zones 13 and 14 which will increase by $1.

Most multi-trip child fares will increase by about 2 percent, because of the GST increase. Multi-trip child fares for 1 – 3 zone  and 11-14 zone will increase more, to get the overall increase in fare revenue that we need.

The effect of this is that stored value cards and multi-trip tickets are now much cheaper than using cash.

Why are the city section, zones 1-2 and zones 11-14 increasing more?

When fares were increased last, in 2008, the city section and 1-zone fares did not change, while fares in some zones increased substantially. For example, fares for 2-8 zone travel increased by between 13 – 22%, so those fares are not being increased this time, apart from the GST increase.

The fares for 11-14 zone trips have been underpriced considering the distance involved. The increase of between 7-14% restores the cost-per-distance balance.

Are any of the daily or other passes changing?

Some operators have decided that some tickets and passes will no longer be available from 1 October. These include the rail quarterly pass, the daily Discovery bus pass, the daily STAR bus pass, the Gold monthly bus pass, the Hutt Valley (Go Rider) monthly bus pass, the Runciman’s monthly commuter pass and the Bus King monthly pass.

Why are these passes being done away with?

While Greater Wellington sets the base fares, the individual bus and train operators have their own fare products such as the STAR and Gold passes. There are currently 265 fare products.

The Tranz Metro quarterly pass is being removed largely because not many people use it, and because there is no equivalent bus pass.

GO Wellington has decided to remove its various passes mentioned above.

The daily Metlink Explorer pass will still be available. The Day Tripper bus pass will be replaced by a similar product, BusAbout. And the Group Day Tripper will be replaced by a similar product, Family BusAbout.

There isn’t a Gold Pass replacement, however, GO Wellington and Valley Flyer are introducing a new product called the GetAbout which may be suitable for some customers.

Bus customers can still choose the most cost effective way to pay for their travel – they can pay by cash, stored value cards (and receive at least a 20 per cent discount off the price of a single cash fare), the GetAbout Pass, the Platinum Pass or a daily passes to suit their requirements.

How much are harbour ferry fares increasing by?

Most single cash fares will increase by 50c. Multi-trip fares will increase by about 2 percent, to absorb the higher rate of GST. Again, this means that multi-trip tickets represent even better value for money than paying cash for each trip.

How much are the Airport Flyer fares increasing by?

Airport Flyer cash fares will increase by 50c. Snapper card fares will increase by 40c. The Airport Flyer is a commercial service, paid for entirely by the operator, NZ Bus. It has a separate fare schedule to other public transport services.

What about Super Gold?

Super Gold card holders will continue to travel free on public transport during off-peak times. If you catch a peak hour service, the fare increase will apply.

When will the new prices for monthly and school term passes take effect?

The fare increases will take effect from Friday 1 October 2010. All fare products that are valid for first use before 1 October will be sold at the old price (including Runciman Commuter monthly, Kapiti Commuter monthly and all school term passes that are also valid for travel after 1 October). Passes valid for first use on or after 1 October, but bought before that date, will be sold at the new price. All tickets and passes bought from 1 October will be sold at the new price.

Are any of the daily or other passes changing?

Some operators have decided that some tickets and passes will no longer be available from 1 October. These include the rail quarterly pass, the Discovery daily bus pass, the STAR daily bus pass, the Gold monthly bus pass, the Go Rider (Hutt Valley) monthly bus pass and the Bus King monthly pass.

Why are these passes being done away with?

While Greater Wellington sets the base fares, the individual bus and train operators  have their own fare products such as the STAR and Gold passes. There are currently 265 fare products.

The Tranz Metro quarterly pass is being removed largely because not many people use it, and because there is no equivalent bus pass.

GO Wellington has decided to remove its various passes, mentioned above, because the Snapper discount has increased significantly.

Many day passes, including the Metlink Explorer pass, the Day Tripper bus pass (which will be re-named Bus About) and the Group Day Tripper (to be re-named Family Bus About), will still be available.

Bus customers can still choose the most cost effective way to pay for their travel – they can pay by cash, Snapper (and receive a minimum 20 per cent discount off the price of a single cash fare) or the Platinum Pass or a daily passes to suit their requirements.

Why are fares going up when the new trains aren’t here yet?

Trains are only one part of Metlink public transport network. While the new trains have not arrived yet, a lot of work has gone and is still going on to prepare for them. Stations have been improved around the network, a new line is being created into Wellington Railway Station to reduce queuing times, the power supply and signal system is being overhauled, and double tracking and electrification is being extended to Waikanae.  

But the fare increase is not related specifically to the new trains – it is to take account of the higher GST rate, and to maintain the balance of the costs of public transport paid by the users of our services. The Government has recently announced that it expects passengers in the Wellington region to pay 50% of the costs of public transport services. So, it’s imperative that we keep as close to that balance as possible, to avoid a huge and painful increase in fares in future.

 Is a fare increase going to be a regular two yearly event?

Fares are reviewed every year. Given that costs of public transport, like all other costs seem to increase, then it is likely that fare increases will become a regular, even annual, occurrence.