Auckland public transport subsidies soar to $750m over five years

Ratepayer subsidies for train and ferry services have soared from $510 million to nearly $750m over the past five years, Auckland councillors heard yesterday.

The cost of subsidising each public transport user has nearly doubled from $3.27 to $6.30 over five years, according to a report by Auckland Transport to the council’s transport, resilience and infrastructure committee.

For bus services, the subsidy has increased from $2.72 to $4.70, train services from $4.56 to $12.01, and ferry services from $11.86 to $18.07. Buses account for about 75% of public transport journeys with trains accounting for about 20% and ferries for 5%.

The cost of running public transport is met through fares, NZ Transport Agency and council subsidies, and commercial activities like advertising.

The report said while patronage had recovered to 86% before Covid, even at full recovery would require “significantly higher subsidies than in 2019”.

“This presents a critical financial sustainability challenge for funding partners, particularly as Auckland maintains relatively affordable short-distance fares,” the report said.

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