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 What We Could Do For Hong Kong, If Only We Dared

There has been something repulsive about PM Jacinda Ardern’s assurances that our joint 5 Eyes criticism of China’s actions over Hong Kong – and China’s harsh reaction – are all well understood on both sides. According to Ardern, it has been a case of us saying the sort of things we’ve said before, them acknowledging our need to do so, and then them responding much as we would expect them to do. All neat and tidy. Frankly, if all of this is merely virtue signalling on our part, and huffy declarations of independence on their part, then what’s the point of this diplomatic dance..? More>>


New Zealand Government: Speech From The Throne

It is my privilege to exercise the prerogative of Her Majesty the Queen and open the 53rd Parliament.
In the October election, New Zealanders elected a majority Government for the first time under our Mixed Member Proportional electoral system... More>>

Grant Robertson: Government To Review Housing Settings

New Zealand’s stronger-than-expected economic performance has flowed through to housing demand, so the Government will review housing settings to improve access to the market, the Finance Minister Grant Robertson announced today. “Our focus More>>


Law Commission: Recommends New DNA Laws For Criminal Investigations

Te Aka Matua o te Ture | Law Commission today released a report that recommends a new, comprehensive regime to control how DNA is obtained, used and retained for criminal investigations. The report has revealed significant gaps in the operation ... More>>


Economy: Crown Accounts Reflect Govt’s Careful Economic Management

The better-than-expected Crown accounts released today show the Government’s careful management of the COVID-19 health crisis was the right approach to support the economy. As expected, the Crown accounts for the year to June 2020 show the operating balance ... More>>


Green Party: Announce Portfolio Reshuffle With Talented And Energised Caucus Team

“The Green Party caucus offers a breadth of talent and energy to the Parliament this term. In ten MPs you have a small business owner, a human rights lawyer, an academic, a climate negotiator, a transport planner, and so much more”, Green Party ... More>>


APEC: New Zealand Ready To Host Virtually

Prime Minister Jacinda Ardern took over the leadership of APEC earlier today, when she joined leaders from the 21 APEC economies virtually for the forum’s final 2020 meeting. “We look forward to hosting a fully virtual APEC 2021 next year. While ... More>>





InfoPages News Channels