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Free Fares NZ Warns Rates Cap Could Increase Bus Fares

The Free Fares coalition warns that recent government announcements about local government could lead to increased bus fares across the country.

“The Government’s proposed local government shakeup would mean increased pressure on non-rates revenue, i.e. water charges, fees, and public transport fares,” said Free Fares NZ spokesperson Frances Mountier. “While the future of the organisations governing our public transportation is uncertain, the Government plans to change the revenue mechanisms for public transport. The announced intended legislation would mean rates are capped while other sources of revenue would not be.[1]”

“We are all struggling with the cost of living, but rates fund many of our essential services, including public transport. This rate cap means that councils have to have other sources of income, which increases costs for households. If all the bus fares go up, the cost of living goes up. And those increased costs fall mostly on the people who are least able to afford increased costs. Our whole campaign is centred on trying to make public transport more affordable for those who struggle the most with the cost of transport,” said Ms Mountier.

Free Fares NZ is a coalition of over 100 organisations who call for central government funding to make public transport free for students, under 25s, Community Service Card holders, and Total Mobility Card holders and their support people.

“Last year, the Government announced they planned to massively increase private share targets.[2] Despite significant push back from the public, our Coalition, and local government, this has already resulted in Invercargill increasing their fares by approximately 60%, and Horizons has decided to increase their fares by 37.5% over the next couple of years. The Free Fares Coalition opposed increased private share targets, and we will continue to oppose fare hikes, because we need to see public transport get more affordable for households, not less,” said Ms Mountier.

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The March 2025 Free Fares NZ petition against fare hikes is currently before the Transport and Infrastructure Select Committee.[3]

“We call on Chris Luxon and the National party to renew their commitment to localism.[4] We call on NZ First to expand their commitment to affordable public transport for Super Gold Card holders to include all those experiencing transport poverty. We call on all political parties to provide central government funding to make public transport free for students, under 25s, Community Service Card holders, and Total Mobility Card holders and their support people. Free fares for these groups will lessen transport poverty, minimise congestion, cut down emissions, increase community connection, and ultimately save households money in the long run,” said Ms Mountier.

ABOUT

Free Fares NZ is a coalition of over 100 organisations, unions, local councils, faith groups, and student unions who call for central government funding to make public transport free for students, under 25s, Community Service Card holders, and Total Mobility Card holders and their support people. The members are listed here: https://freefares.nz/coalition/

Free Fares NZ has petitioned for their key demand, and to keep half-prices fares for all (during covid), to keep the May 2023 discounts (which included free fares for children, half-price for young people, and half price for CSC holders), and in late 2024, against the private share proposals which would have led to fare increases across the country. freefares.nz

At present, Community Service Card holders receive half-price fares on public transport across the country.

[1] https://www.beehive.govt.nz/release/getting-rates-under-control-ratepayers

[2] https://www.nzta.govt.nz/assets/About-us/docs/oia2-2025/MIN-4872-Private-share-targets-for-public-transport-authorities.pdf

[3] https://petitions.parliament.nz/6d810746-3bbf-409a-9a78-08dd6ca30813?lang=en

[4] On 13 April 2023, Chris Luxon said, “This is a centralisation, it's a robbery of power and control from local communities who built up these assets through their rates over generations.” https://www.rnz.co.nz/news/political/487880/watch-national-party-leader-christopher-luxon-responds-to-three-waters-revamp

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