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.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Australian Election Toss-up

The foibles of the Aussie electoral system are pretty well-known. The Lucky Country doesn’t have proportional representation. Voting for everyone over 18 is compulsory, but within a preferential system. This means that in the relatively few key seats that decide the final result, it can be the voters’ second, third or fourth ranking preferences that finally get the winner over the 50% line...


Budget: Climate Investments Provide Path To Economic Security
The Government is investing in New Zealand’s economic security by ensuring climate change funding moves away from short-term piecemeal responses and towards smart, long-term investment... More>>


Budget: Updated My Vaccine Pass For Those Who Want It

New Zealanders who are up-to-date with their COVID-19 vaccinations will be able to download an updated My Vaccine Pass from 24 May, COVID-19 Response Minister Chris Hipkins said today... More>>

Speaker: 2022 Register Of Pecuniary And Other Specified Interests Presented
The 2022 Register of Pecuniary and Other Specified Interests of Members of Parliament was presented in the House today. It contains a summary of members’ interests as at 31 January 2022... More>>

Classification Office: Following Decision To Ban Manifesto The Buffalo Mass Shooting Livestream Is Now Banned
The livestream video of yesterday’s mass shooting in the United States has now been banned, Acting Chief Censor Rupert Ablett-Hampson announced this morning. The decision follows on from his decision yesterday to call in and ban the ‘manifesto... More>>

Borders: New Zealand Poised To Welcome International Students Back
New Zealand is fully reopening to international students and the Government is committed to help reinvigorate and strengthen the sector, Education Minister Chris Hipkins said today... More>>

Inland Revenue: Commissioner Appointed
Deputy Public Service Commissioner Helene Quilter QSO has today announced the appointment of Peter Mersi to the position of Commissioner and Chief Executive, Inland Revenue Department... More>>




InfoPages News Channels