At 15%pa is Fare Fair?

[SteelPan]

Can somone please expalin to me, how the State Govt justifies 15%pa fare increases - that's around what, 2-3 times inflation?  I would have thought public transit fares, IF they did need to rise year-on-year, alot places they don't, but, IF they did, authorities would surely cap increases at a CPI adjustment or similar?  What's going on here?  :conf Thanks for any thoughts you can offer.

[Fares_Fair]

Can somone please expalin to me, how the State Govt justifies 15%pa fare increases - that's around what, 2-3 times inflation?  I would have thought public transit fares, IF they did need to rise year-on-year, alot places they don't, but, IF they did, authorities would surely cap increases at a CPI adjustment or similar?  What's going on here?  :conf Thanks for any thoughts you can offer.

Former Transport Minister Rachel Nolan (Ipswich) and Translink promoted the line that
"every cent collected from the the increase in fares will go to funding
better transport services" when they know that this is sort of misleading.

In the Minister's statement on 15 October 2009 this is what she said -
"Ms Nolan said the fare strategy also aimed to return the State
Government's per-trip subsidy from 75 per cent back to 70 per cent
within five years. To help reach that goal fares will increase 15% a year
from 2011 to 2014 – or around 40 cents to 60 cents a year for a typical
two-zone ticket."

Regards,
Fares_Fair.

[HappyTrainGuy]

One would also have to think its to pay off some of the GoCard infrastructure and maintainence.

[#Metro]

authorities would surely cap increases at a CPI adjustment or similar?

I am against abitary caps to CPI or whatever. Prices should be set according to the goals trying to be achieved at the same time.

[SurfRail]

Can somone please expalin to me, how the State Govt justifies 15%pa fare increases - that's around what, 2-3 times inflation?  I would have thought public transit fares, IF they did need to rise year-on-year, alot places they don't, but, IF they did, authorities would surely cap increases at a CPI adjustment or similar?  What's going on here?  :conf Thanks for any thoughts you can offer.

CPI caps presume that you aren't planning on doing anything to improve service characteristics by getting more real money.  Before the last set of fare increases, there were no effective increases for passengers in real terms since well before integrated ticketing, which bought decreases to most commuters in 2004.

The big problem is that instead of leveraging capacity out of the system by running it better and more efficiently (especially in the off-peak), they are resorting to our wallets to subsidise their own waste by taking advantage of a captive market/natural monopoly.

I have no compunction paying greater than CPI price increases if services will be drastically improved - however I am yet to see any qualitative improvements to service levels that can be attributed to the increases.  The 6 June 2011 rail timetable upgrade was the most significant one but as usual, it was primarily aimed at adding peak capacity, and therefore will achieve little.

[mufreight]

Well now Mr Strachan is departing the scene perhaps the annual fare increases will drop back to only 7.5% and the money might actually be directed to the provision of services rather than the expansion of the Translink circus.   

[SteelPan]

Can somone please expalin to me, how the State Govt justifies 15%pa fare increases - that's around what, 2-3 times inflation?  I would have thought public transit fares, IF they did need to rise year-on-year, alot places they don't, but, IF they did, authorities would surely cap increases at a CPI adjustment or similar?  What's going on here?  :conf Thanks for any thoughts you can offer.

CPI caps presume that you aren't planning on doing anything to improve service characteristics by getting more real money.  Before the last set of fare increases, there were no effective increases for passengers in real terms since well before integrated ticketing, which bought decreases to most commuters in 2004....

Fare increases beyond CPI adjustment make no real sense beyond short-term dollar grabbing.  Physical transit infrastructure is (mostly) funded from consolidated revenue - all the fare increases in the world, will do little more than help meet operational costs - the idea is surely to get more and more people on to public transit, not drill ever deeper holes into peoples wallets at the same time!

[SurfRail]

Fare increases beyond CPI adjustment make no real sense beyond short-term dollar grabbing.  Physical transit infrastructure is (mostly) funded from consolidated revenue - all the fare increases in the world, will do little more than help meet operational costs - the idea is surely to get more and more people on to public transit, not drill ever deeper holes into peoples wallets at the same time!

In many cases it isn't a question of infrastructure.  Extra weekend and off-peak bus and train services can be provided very easily assuming you have the money to pay for the fuel and drivers - the fleet is certainly there.  CityCats you need more of, but the infrastructure burden isn't massive as the right of way is already well and truly there.

The point is taken though.  The system needs to be supply driven to encourage usage - this will represent a better return on investment, but the magnitude of the investment needs to be greater.

[dwb]

Can somone please expalin to me, how the State Govt justifies 15%pa fare increases - that's around what, 2-3 times inflation?  I would have thought public transit fares, IF they did need to rise year-on-year, alot places they don't, but, IF they did, authorities would surely cap increases at a CPI adjustment or similar?  What's going on here?  :conf Thanks for any thoughts you can offer.

CPI caps presume that you aren't planning on doing anything to improve service characteristics by getting more real money.  Before the last set of fare increases, there were no effective increases for passengers in real terms since well before integrated ticketing, which bought decreases to most commuters in 2004....

Fare increases beyond CPI adjustment make no real sense beyond short-term dollar grabbing.  Physical transit infrastructure is (mostly) funded from consolidated revenue - all the fare increases in the world, will do little more than help meet operational costs - the idea is surely to get more and more people on to public transit, not drill ever deeper holes into peoples wallets at the same time!

Like someone else said it is a captive market, so no, the raises are justified for peak customers. In my mind we really need to be pushing 2004 ticket prices for go card off peak fares.