New rules that allow councils to take over and run public transport services rather than contract them to private companies are being slammed by the Bus and Coach Association of New Zealand.
The new Sustainable Public Transport Framework (SPTF) announced this week by transport minister Michael Wood plans to allow councils to own and operate services in house and deliver routes and services along with other policy aims such as decarbonisation.
The new framework will replace the Public Transport Operating Model (PTOM) which has been operating since 2013 and is the current policy and legislative framework for the planning, procurement, and delivery of bus and ferry public transport services.
Bus and Coach Association of New Zealand Ben McFadgen says the new rules show “appalling disregard for business and the realities of market dynamics”.
“Whilst there are many components of the SPTF that we welcome, the almost singular focus in this announcement on nationalisation of public transport services is staggering,” he says.
“The assumption that it will fix the driver shortage demonstrates a clear lack of understanding of the complexities of the challenge.
“The driver shortage has come about due to a myriad of influences. Not the least the government’s drive to lower costs through the PTOM tendering process. That and the international events that have occurred, such as COVID and the closing of NZ’s borders, has led to the instability we see now. Multiple industries are suffering,” McFadgen says.
“The idea that services will be most effective and efficient under a centralised model is fundamentally unsound. There is a general skills shortage – worldwide. Where will the skills and expertise to run the services for a PTA come from? There is real skill and expertise involved to run the depots, repair buses and maintain infrastructure sustainably. Competition also creates efficiency. This incessant push towards nationalisation does a real disservice to the men and women who have kept and are keeping this country moving through thick and thin,” McFadgen adds.
He says the new model will be funded either directly through taxes and rates or indirectly via crown debt and will be “extremely costly and inefficient”.
“The pendulum has gone too far, we are heading pell-mell back to the 1970s. What is required is a balance, not this headlong rush to the other side and over a cliff – which is what this Government is doing. This is a touch too far after the instability of the last three years,” McFadgen says.
Local councils welcome changes
Meanwhile, council advocacy group Local Government NZ is welcoming the new public transport framework.
LGNZ president Stuart Crosby says the PTOM was supposed to increase patronage and create efficiencies but the competitive tender process “hasn’t always delivered the best outcomes for communities”.
“Councils have been calling for changes to PTOM for some time. Rigid procurement processes under the old model have led to several issues including a lack of sustainable routes in our cities and driver shortages.
“We want to avoid these issues in the future. Councils know their communities best … Public transport is a key lever in tackling such challenges and if ratepayers deem it is a priority, councils should have the ability to invest in it the way their community wants them to.
“To deliver public transport that is reliable, councils want the option of owning and operating the network themselves so they can make better long-term investment decisions.
“We acknowledge that the Sustainable Public Transport Framework will take some time to be implemented with legislation yet to go through the House and current contracts to come to an end.
“The new framework also gives local and central government a better platform to work together to ensure the funding for public transport is sustainable,” Crosby says.
