Tuesday, September 15, 2009

Michael Deaker On Buses

Michael Deaker, chairman of the ORC policy and resource planning committee, has written an
opinion piece in the ODT on Buses. It is much more positive than the recent "hospital pass" comment by ORC chief executive, Graeme Martin (my blog post about that here).
Michael talks of "gradual, prudent and practical improvements to buses". I do not consider an increase in bus costs from $2,154,129 to 4,823,951 in two years as "gradual" or "prudent".
He also says:
The The ORC's policy is to split the cost of contracted services over and above the government subsidy, 50-50 between bus users and transport rates.
I believe that this is incorrect. The policy is to split the cost of contracted services 50-50 between bus users and transport rates, and that this is a requirement of to receive the Government subsidy (which currently 25% of costs). The interpretation of this policy will have a significant effect on whether bus fares need to be raised further. I am sure that this will be clarified in the future.
I agree that it will be rising fuel prices which eventually triggers a significant increase in bus use.

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