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Action for Public Transport (N.S.W.) Inc.

NEWS RELEASE: Fare Increases Could Lose New Converts

posted Thursday 17 August 2006

**** On The Wrong Bus ****

Charging higher fares is not the way to attract and keep motorists seeking refuge from higher petrol prices, according to a transport consumer group. Allan Miles, spokesman for Action for Public Transport (APT), said the bus and ferry authorities are ruining a great marketing opportunity.

"In recent months," Mr Miles said, "public transport has attracted many new passengers from the ranks of suffering motorists." "A fare increase now may lose these converts, and deter prospective new ones," he said.

"Some of the fuel cost increases should have been covered by the fares from new passengers," Mr Miles said. "Much of this increased patronage has been carried on existing services at no extra cost," he said.

**** Subsidies ****

Mr Miles said that the government should fund any further shortfall in revenue. He said that remarks by the Transport Minister about subsidies were not helpful. Mr Watkins was reported as saying, "the taxpayer who doesn't use public transport services will have to subsidise those who do." Mr Miles said that we live in a community, and we all pay with our taxes for things that we don't directly use, such as schools, farm subsidies, prisons, art galleries, drug injection rooms, etc. "The community benefit from good, affordable public transport is less congestion on the roads for non-users," he said.

Mr Miles said that Mr Watkins' comments seemed at odds with Mr Iemma's plan for a co-ordinated approach to government planning.

**** Government Fuel Pricing Policy ****

Mr Miles said that Australian governments are in disarray over fuel pricing policy. "Higher fuel prices are here to stay," he said, "yet the Federal Government chooses to subsidise rich motorists who can afford $3,000 gas conversions, while the NSW State Government wants to raise fares on a bus fleet which is already substantially gas-powered".

**** Beat The Fare Rise - Buy Now! ****

Conceding that a fare increase is probably inevitable, Mr Miles suggested that regular and even infrequent users should stock up on TravelTen and FerryTen tickets now. "These save time and money," he said, "and have no expiry date. Buy up big now!"

Mr Miles said that users of the popular TravelPass weekly tickets should consider investing in a yearly one. "A yearly ticket is only 40 times the price of a weekly," he said, "and once you have paid, you are immune from fare increases." "But you must apply before any increase is approved," he added.

"Employers could provide interest-free loans to staff to enable them to buy yearly tickets," he said, "with repayments from salary deductions."

**** IPART Procedures ****

Mr Miles was critical of the Independent Pricing and Regulatory Tribunal (IPART) for soliciting and receiving submissions from the transport authorities before the fare review had been made public. "In past years," he said, "the review was always advertised at least a month before submissions from the authorities were due." "Even then," he said, "they seemed to be caught by surprise, had nothing ready, and were often late with their submissions." "This year," he said, "they are so eager that they seemed to have jumped the gun."

IPART's web site shows that the Review will be advertised in newspapers on 23rd August, and that submissions from the public will be received until 29th September. "Public transport users are urged to make submissions to the Review," Mr Miles said, " even if it is only one paragraph. The unprecedented number of submissions opposing the rail fare increase last year had an effect on the outcome, so you will not be wasting your time."

Contact: Allan Miles   9516-1906



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