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Passenger Transport Funding Scheme Finalised

Passenger Transport Funding Scheme Finalised By Transfund

Media Release
For immediate release
23 December 2003

Passenger transport funding scheme finalised by Transfund

Transfund New Zealand, which provides financial assistance to regional councils for bus and ferry services, has finalised its passenger transport scheme. This will put patronage funding on a long-term sustainable basis.

The scheme will continue the current partnership approach between Transfund and councils under which costs are shared between both parties for each region.

A draft consultation document on the new scheme was released for consultation in April this year.

Policy and strategy manager Simon Whiteley says submissions received from regional councils, the New Zealand Bus and Coach Association and other interested parties were taken into account when Transfund finalised the scheme.

This scheme will take effect from 1 July 2004. Under the scheme, Transfund will meet 48 percent of the cost of funding core patronage, ie, patronage levels three years prior to the payment year, and 75 percent of the cost of attracting additional passengers to the system above core patronage levels.

Mr Whiteley says the scheme provides greater flexibility for councils to work with bus and ferry operators to maintain and improve existing services, as well as potentially adding new services.

The scheme supports the New Zealand Transport Strategy objectives of assisting economic development, assisting safety and personal security, improving access and mobility, protecting and promoting public health and ensuring environmental sustainability.

It will help to create an effective and integrated mix of transport modes and make better use of existing and new public transport investment.

ends

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