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Council agrees to public transport revenue targets

Date:

Council has set its private revenue ratio targets for public transport services for the current funding period.

It follows NZ Transport Agency Waka Kotahi (NZTA) outlining its expectations that Councils set targets to increase their public transport private revenue, which is gained from our fares, on-bus advertising and other avenues, as a percentage of total costs.

Council decided on a 12 per cent target this financial year, followed by a 13 per cent target in the 2025/26 financial year, increasing to 14 per cent in 2026/27.

These targets are thought to better reflect the conditions and opportunities available to us over the current funding period (2025-2027) and be more likely to be achievable than the ones proposed by NZTA of 18 per cent, 25 per cent and 38 per cent, which would have required a significant increase in fares and/or reduction in services.

The increase in private revenue is expected to be gained through a range of initiatives including increasing advertising opportunities, fare uplifts through annual reviews and expected patronage growth from facilities such as Parakiore Recreation and Sports Centre and One New Zealand Stadium at Te Kaha opening, an upcoming frequency increase of Route 7 as well as leveraging the capabilities that Motu Move will present.

Council discussions at the meeting

  • Public forum: Council heard from Danette Wereta and Rebecca Hartley, who discussed the issue of cruelty, harm and environmental damage at Te Waihora around duck hunting on the lake.
  • Councillor notice of motion: Council received and voted on a notice of motion from Councillor Peter Scott, who asked staff to prepare a report outlining the processes, advantages, disadvantages and legal considerations involved in establishing Council Controlled Organisations for service delivery (such as public transport), or commercial investments (such as infrastructure). Councillor Scott asked that the report include an analysis of examples from other councils that have implemented similar initiatives, and staff recommendations for next steps for the Council to consider. The notice of motion passed, and the staff advice will be presented to the Audit and Risk Committee in May.

  • Investigating the efficiency/effectiveness of the planning framework for the Waitaki Catchment: Council reviewed a report on an investigation into stakeholder views on managing the Waitaki Catchment in a more integrated way. They agreed to progress to the next step in the discovery phase, which is to prepare a Section 35 report that looks at the existing planning framework to determine whether it is achieving its objectives, whether they are the right objectives, and whether a review of the framework is needed.

  • Response to notice of motion – funding mechanisms: A report was presented back to Council addressing the notice of motion accepted by the Council at last month’s Council meeting about what could stop Council from entering into a subsidiary loan with Central Government.
  • Pest control programmes: Council approved delegated authority so we can receive and administer a current offer and any future funding offers associated with the delivery of the National Wilding Conifer Control Programme (NWCCP) and the National Wallaby Eradication Programme (NWEP). A current offer from Land Information New Zealand (LINZ) for approximately $300k has been received for delivery of the National Wilding Conifer Control Programme. This funding will support expenditure over and above what was included in Year 1, or possibly Year 2 of the Long-Term Plan 2024-34.

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