Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 

Extra Metro funding required for fuel cost swings

Extra Metro funding required to adjust for fuel cost swings

Environment Canterbury councillors have agreed to provide $1.1 million to the public passenger transport portfolio for the 2006/07 financial year from Public Passenger Transport Reserves to cover the unbudgeted difference in fuel price indexing caused by price swings over the year.

Large regional councils like Wellington and Auckland are in a similar position and Land Transport NZ is reviewing its indexing system to ensure it adequately reflects fuel price swings and other costs.

Fuel prices had increased significantly at different times in the past year and even when they dropped, the price indexing payments continued to increase, due to the delayed flow-on effect and other costs - labour, road transport costs, and storage.

ECan’s Public Passenger Reserves fund is at $6.7 million and the aim is to keep it at no less than $5 million, said David Stenhouse, ECan passenger services assistant manager. The same amount of funding - $1.1 million - would be matched by central government through Land Transport New Zealand.

The projected cost of public transport in Christchurch for 2006/07 is now approximately $24.5 million and $22.1 million had been budgeted in the LTCCP.

Mr Stenhouse also indicated that it was highly likely that bus fares would have to rise in a year’s time because of new central government regulations covering the work time rule for drivers. This would reduce the hours drivers could work and increase the number of drivers required. “Our best estimate is that this could add 6-7 per cent to the overall cost of the tendered contracts.”

Councillors agreed to the additional funding from Reserves to cover the inflation indexing on 2006/07 passenger transport contracts; that additional funding for the 2007/08 year would be jointly funded through the targeted passenger transport rate and Land Transport NZ (an increase of $3 per $100,000 rating capital value, ie to $36 total per $100,000 capital value); and that staff would investigate an appropriate way to fund any changes to the work time rule for drivers, with a preference for fare increases.

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: What Does Winston Peters Want His Legacy To Be?

A lot of people in New Zealand seem to resent Winston Peters and the power that he appears to have. “Appears” being the operative word. In reality, Peters will have power only up to the point that he uses it.

By next week, he’ll have become just another junior player in an MMP governing arrangement, battling to hold onto the gains he was promised. More>>

 

Rising Toll: Road Safety Needs To Be A Higher Priority

Official advice released to the Green Party under the Official Information Act shows that the previous National Government dismissed an option to make road safety its most important transport priority after being told the road toll was rising. More>>

ALSO:

Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election