The Labour Party has unveiled its first major election policy since last month’s Budget, promising to cap public transport fares in a move aimed at easing cost-of-living pressures for commuters.
Under the proposal, public transport users in Auckland, Wellington and Christchurch would pay no more than $20 per week from July next year, while commuters in other regions would have their fares capped at $10 per week. Any travel beyond those limits would be free, Stuff has reported.
The policy would apply to most daily commuter public transport services, including buses, trains and eligible ferry routes. However, some services would be excluded, including interregional rail services such as the Capital Connection and Te Huia, Waiheke Island ferries, InterCity buses and public transport systems that operate cash-only fares, as reported by Stuff.
Labour leader Chris Hipkins said the fare cap would be the first of several policies focused on helping households manage rising living costs.
“One of the reasons we’ve left our policy announcements up until now, and there’s more to come, is that we wanted to give the Government an opportunity to actually do something to support New Zealanders with the cost of living, which we would support. They haven’t done that,” he said, Stuff has quoted.
Hipkins added that Labour would also announce measures to support people who do not use public transport, particularly those living in rural communities.
The party estimates the scheme would cost about $65 million annually and would be funded through the National Land Transport Fund. Labour says the average commuter could save around $25 a week, or up to $1200 a year, as reported by Stuff.
Labour transport spokesperson Tangi Utikere said modelling from Auckland Transport suggested the policy could increase public transport use by about 6%.
He said existing buses, trains and ferries would be able to accommodate the expected rise in passenger numbers.
According to Stuff, the proposal comes as questions continue to be raised about pressure on the National Land Transport Fund, which is also used to finance roads and other transport infrastructure projects.
Hipkins defended the spending, saying the benefits would be immediate and widespread.
“I am taking those [Treasury] warnings very, very seriously. For $65 million, this benefits a lot more people much more quickly than investments in the roads of national significance, which are much more expensive, and take a lot longer,” he said, Stuff has quoted.
The policy was quickly criticised by the Government. Transport Minister Simeon Brown described the proposal as fiscally irresponsible.
“Labour is 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,” he said, as quoted by Stuff.
Brown argued that the National Land Transport Fund was already under pressure and questioned Labour’s funding plan.
He said the fund was already “oversubscribed” and described it as “fanciful” to be “siphoning a quarter of a billion dollars” towards the policy, Stuff has quoted.
The announcement signals the start of Labour’s election campaign policy rollout as parties prepare for the November general election.
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