“Half-price fares have cost ten-times less than the fuel subsidy. While we understand that there are
always pressures on public finances, that is a huge difference. It gets people on public transport. It
enables mode-shift, it reduces overall emissions in the transport network” says CEO Ben McFadgen.

“We found that the Government’s figures when they were considering ending the subsidy were

questionable. They didn’t add up “

The BCA’s senior policy adviser, Max Dickens, agrees. “Minister Wood stated that the subsidy

accounted for around 3-4% mode-shift. But where have these numbers come from? Using post-

COVID data as a baseline to compare against is problematic because travel patterns are still all over the place. The subsidy kicked in while the country was barely out of lock-down. More people are working from home, more often. We have forgotten how rare working from home was just a few years ago” says Dickens.

“There have also been significant disruptions to the network, for example the Auckland rail network,
staffing shortages, general road conditions.” Says McFadgen.

“Central and local government needs to retain its focus on PT infrastructure. An effective infrastructure is fundamental to achieving the Government’s public transport goals.

“Public transport moves more people, more efficiently, more cheaply. It can substantially reduce
transport emissions. As long as it works. To us, continuing the subsidy indefinitely is a no-brainer.
“We believe the fuel levy can be reintroduced in stages to help businesses and the public adapt. The
reduction has helped with inflation and the cost of living, but the transport network needs paying for
at some point, and NZTA’s budget has already taken a massive hit.”