Estonia capital gives residents free ride

[rtt_rules]

Free PT in a poor country got a rise of 10%, what would happen in Brisbane? Its costing then about $15mpa. I suspect the same in Brisbane would cost about $300-400m, more if more services had to be put on. Perhaps the off-set is a travel Go-card style card that simply costs a fixed annual fee of say $50.


http://www.couriermail.com.au/news/breaking-news/estonia-capital-gives-residents-free-ride/story-e6freoo6-1226612813461


Estonia capital gives residents free ride

by:Jari Tanner
From: AAP
April 04, 20138:32PM

LOOKING for a free ride? Go live in Tallinn.

Estonia's capital has become the world's first to introduce free public transport for all of its residents.

All that's required is a transit pass showing you're a registered Tallinner - and the city's buses, streetcars and trams are yours for free.

"I live on a tight budget since I don't have too much work right now," said Mare Tulp, who recently registered as a Tallinn resident.

"I need to save money wherever I can, so I'm very happy with the free public transit scheme. This is a good thing for the common person."

Three months after launching the initiative, city officials are hailing the experiment as a success, though sceptics say it's an expensive, populist trick ahead of local elections.



The free-ride scheme is the brainchild of Mayor Edgar Savisaar, who wants to reduce congestion and pollution while cutting costs for the city's poor.

Savisaar claims families will be able to save a month's salary now that they can get around Tallinn for free.

Deputy Mayor Taavi Aas says the experiment, which will cost the city about 12 million euros ($A14.8 million) annually in lost ticket sales, has surpassed expectations.

Passenger numbers are up 10 per cent, while the number of cars on city streets has fallen by as much as 15 per cent, according to Tallinn's transport authority.

A recent opinion poll commissioned by the city shows that 90 per cent of Tallinn residents are satisfied with the project.

"People now move around the city more frequently during weekends," Aas said. "This means they also spend more money, which boosts the economy."

City officials say it's too early to tell how much the city's economy has been stimulated in this way.

But the program is expected to boost the city's tax revenue because the registration requirement is winning the city more taxable residents.

According to city calculations, about 40,000 people living and working in Tallinn are registered in other cities and towns. But more than 5000 new Tallinn residents have been registered since January 1, compared with 3600 residency registrations for all of last year.

With 1000 new residents equalling an estimated 1 million euros in city tax revenue, the current registration rate would offset the program's costs this year, Aas said.

The initiative covers buses, streetcars and trolleybuses in Tallinn - a city of 425,000. The only catch is that one must be registered as a city resident and get a transit pass for 2 euros.

Once on board, you must place the pass on an electronic reader. If you don't, a ticket controller can fine you up to 40 euros ($A50).

Installing the system was a breeze in tech-savvy Estonia, birthplace of Skype and pioneer of online voting.

Many European capitals, including London, have similar electronic fare systems, but the difference is Tallinners never have to top up the card with money.

Critics say the experiment is doomed and will bankrupt Tallinn.