Reported Public Transport Funding Boost an Illusion

Sunday, 3 June 2012, 11:54 am
Press Release: Generation Zero

Reported Public Transport Funding Boost an Illusion, Says Generation Zero

Sunday 3 June, 2012

FOR IMMEDIATE RELEASE
 
Generation Zero disputes media reports that the Government is boosting public transport funding to record levels, with analysis showing that overall investment in public transport through 2012-15 is likely to be smaller in real terms than it was in the previous three-year period.

“The Government and NZTA might try to dress up the transport budget to make it look like public transport is getting a better deal, but in reality it’s the same unbalanced budget that we dressed down to expose with our underwear protest on Tuesday,” said Generation Zero spokesperson Paul Young.

On Friday, the New Zealand Transport Agency announced 2012-15 funding allocations  for five of its ‘activity classes’, including $830 million for public transport services – an increase of 33% from the 2009-12 figure.

But Mr Young says that this is not the full story.

“The total public transport investment has two components: services and infrastructure. While the allocation for public transport services has been increased – which is needed to keep up with growing demand – the Government slashed the budget for new infrastructure.”

Public transport infrastructure investments include rail, ferry and bus stations, priority bus lanes, park and ride facilities, real-time information and ticketing systems, and more. Under the 2009-12 National Land Transport Programme, this category received an average of $90 million per year.

However, last year’s Government Policy Statement on Land Transport Funding cut this back to a range of $20-60 million per year for 2012-15.
Taking the midpoint of the range in the Government Policy Statement brings the total public transport allocation to $950 million, compared with $899 million for the previous three years.

“After accounting for inflation, it looks like the overall Government funding for public transport will actually be lower in this National Land Transport Programme than in the last one,” said Mr Young.

Generation Zero says that the Roads of National Significance are to blame for funds being squeezed in all other categories, and wants to see funds reallocated to support public and active transport.

“The way New Zealand’s transport system evolves will be dictated by how we invest our money today,” said Mr Young. “The bottom line is that if we keep giving the lion’s share to new highways and roads at the expense of smart alternatives we’ll end up even more dependent on cars and trucks, wasting more money on oil and increasing our carbon emissions. That isn’t a legacy that we want as young people.”

Generation Zero says the funding picture gets even worse when other factors are considered.

Firstly, NZTA states that $21 million of the public transport services investment is for increased rail track access charges, which local councils pay back to Kiwirail, and the Government is also charging interest on a loan to Auckland Transport used to purchase new electric trains.

“What this means is that the Crown will essentially claim more than $21 million of the public transport funding back in a money-go-round,” said Mr Young.

Additionally, Generation Zero believes public transport services might also bear some of the brunt of the funding freeze on maintenance and renewals of local roads.

“The freeze on local road funds passes the buck to local councils. If they fail to find major savings they will have three options: increase rates, neglect local roads, or take money from other areas like public transport and cycling to make up the cost,” said Mr Young.

“Taking the overall picture including national and local funds, it looks like public transport is at best getting a zero budget too.”

ENDS

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