❓ Dr. Honey questions the Minister for Transport about a significant increase in public transport costs despite lower patronage. The Minister defends the increased costs by citing network expansion, fare capping, and rising diesel prices, accusing the opposition of opposing public transport subsidies.
AnsweredQoN 432Legislative Assembly
QuestionView source ↗
PUBLIC TRANSPORT — COSTS
432. Dr D.J. HONEY to the Minister for Transport:
I refer the minister to her repeated but misleading claim
that the massive blowout in public transport costs and public subsidies is due
to the government's various fare incentives.
(1) Is the
minister aware that since 2016–17 until the latest budget, the net cost
of the public subsidy for metropolitan
region public transport will have risen by 90 per cent, despite the fact that
patronage numbers are still below those achieved in 2016–17?
Ms M.M. Quirk interjected.
The SPEAKER : Member for Landsdale, please do not
interject.
Dr D.J. HONEY : I will continue.
(2) Is the
minister aware that even after allowing for the drop in fare revenue over that
period due to lower patronage and the capping of fares, the subsidy still rises
by a massive 84 per cent, showing that fare subsidies are responsible for only
a small part of the massive cost blowout?
(3) Does the
minister have any cogent explanation for such a massive blowout in public
transport costs that she has overseen?
432. Dr D.J. HONEY to the Minister for Transport:
I refer the minister to her repeated but misleading claim
that the massive blowout in public transport costs and public subsidies is due
to the government's various fare incentives.
(1) Is the
minister aware that since 2016–17 until the latest budget, the net cost
of the public subsidy for metropolitan
region public transport will have risen by 90 per cent, despite the fact that
patronage numbers are still below those achieved in 2016–17?
Ms M.M. Quirk interjected.
The SPEAKER : Member for Landsdale, please do not
interject.
Dr D.J. HONEY : I will continue.
(2) Is the
minister aware that even after allowing for the drop in fare revenue over that
period due to lower patronage and the capping of fares, the subsidy still rises
by a massive 84 per cent, showing that fare subsidies are responsible for only
a small part of the massive cost blowout?
(3) Does the
minister have any cogent explanation for such a massive blowout in public
transport costs that she has overseen?
AnswerView source ↗
(1)–(3) Once again, the Liberal Party is opposing
public transport and opposing us subsidising public transport.
Dr D.J. Honey interjected.
Ms R. SAFFIOTI : That is what I heard; it is opposing
the subsidy for public transport.
Dr D.J. Honey : No; I am asking you to explain the blowout.
Ms R. SAFFIOTI : I will talk about what we have been
doing over the past few years, in case the member did not notice. We have been
expanding the network. We have built new train lines, such as the whole new
train line to the airport, just in case the member did not notice. We have
added bus kilometres. The cost of public transport has of course gone up
because we have expanded the system. The second reason, of course, is in
relation to the capping of fares. There has been a difference between expenditure
and revenue increases because we have subsidised it more. We have said it; we
have subsidised public transport more. Another key point is that the cost of
running particular buses is linked to the price of diesel. We have seen the
price of diesel increase by about 165 per cent, as I recall. That is the
explanation. We have had more kilometres of trains and buses, we have capped
fares, we have had fare-free Sundays and fare-free summers, we have capped
fares at two zones, we have provided free public transport to students and the
contracts are based on diesel prices. The good thing is that we are moving to
electric buses; that will provide a saving
because all the forecasts for diesel over the next number of years show a significant increase after the significant increase that we have already had over the past
two years, primarily driven by some external factors. That is the reason.
Dr D.J. Honey : That doesn't
explain the difference.
The SPEAKER : Order, please!
Ms R. SAFFIOTI : If the
Liberal Party wants to cut that, it will probably increase fares and cut
services. That is what it is going to do. The member should stand up and tell
us which bus services the Liberal Party is going to cut and how big the price
increases are going to be. I mean, what is it going to do? If the Liberal Party
thinks the subsidy is too high, what is it going to do?
Dr D.J. Honey : What you are
not doing—manage it!
Ms R. SAFFIOTI : Oh, manage
it!
Several members interjected.
Ms R. SAFFIOTI : As I said,
there are two key routes—to cut services or increase fares
significantly. That is pretty much it. Is the Liberal Party going to cut the
wages of bus drivers? What are the other costs? Will it not maintain the buses?
Will it not clean them? Will it not put fuel in them while they are still
diesel? Is it going to cut the wages of bus drivers? Tell us what you are going
to do. What are you going to do? Liberal governments do not support the
subsidisation of public transport. We understand that. That is their policy.
Our policy is that we support the subsidisation of public transport because it
is a public good that supports the cost of living and allows people to get
connected to jobs and opportunities and to travel. That is what we do. That is
what we have done. We have capped the annual increases in public transport
fees; the other side did not. What is the member going to do? He said that the
costs are too high. What is he going to do? We are seven or eight months out
from an election.
Mr W.J. Johnston : It is 262
days.
Ms R. SAFFIOTI : It is 262
days! Tell us your public transport policy. I remember that we came out with
Metronet probably about a year and a half from the election. We had a strong
public transport policy. Tell us what you are going to do.
public transport and opposing us subsidising public transport.
Dr D.J. Honey interjected.
Ms R. SAFFIOTI : That is what I heard; it is opposing
the subsidy for public transport.
Dr D.J. Honey : No; I am asking you to explain the blowout.
Ms R. SAFFIOTI : I will talk about what we have been
doing over the past few years, in case the member did not notice. We have been
expanding the network. We have built new train lines, such as the whole new
train line to the airport, just in case the member did not notice. We have
added bus kilometres. The cost of public transport has of course gone up
because we have expanded the system. The second reason, of course, is in
relation to the capping of fares. There has been a difference between expenditure
and revenue increases because we have subsidised it more. We have said it; we
have subsidised public transport more. Another key point is that the cost of
running particular buses is linked to the price of diesel. We have seen the
price of diesel increase by about 165 per cent, as I recall. That is the
explanation. We have had more kilometres of trains and buses, we have capped
fares, we have had fare-free Sundays and fare-free summers, we have capped
fares at two zones, we have provided free public transport to students and the
contracts are based on diesel prices. The good thing is that we are moving to
electric buses; that will provide a saving
because all the forecasts for diesel over the next number of years show a significant increase after the significant increase that we have already had over the past
two years, primarily driven by some external factors. That is the reason.
Dr D.J. Honey : That doesn't
explain the difference.
The SPEAKER : Order, please!
Ms R. SAFFIOTI : If the
Liberal Party wants to cut that, it will probably increase fares and cut
services. That is what it is going to do. The member should stand up and tell
us which bus services the Liberal Party is going to cut and how big the price
increases are going to be. I mean, what is it going to do? If the Liberal Party
thinks the subsidy is too high, what is it going to do?
Dr D.J. Honey : What you are
not doing—manage it!
Ms R. SAFFIOTI : Oh, manage
it!
Several members interjected.
Ms R. SAFFIOTI : As I said,
there are two key routes—to cut services or increase fares
significantly. That is pretty much it. Is the Liberal Party going to cut the
wages of bus drivers? What are the other costs? Will it not maintain the buses?
Will it not clean them? Will it not put fuel in them while they are still
diesel? Is it going to cut the wages of bus drivers? Tell us what you are going
to do. What are you going to do? Liberal governments do not support the
subsidisation of public transport. We understand that. That is their policy.
Our policy is that we support the subsidisation of public transport because it
is a public good that supports the cost of living and allows people to get
connected to jobs and opportunities and to travel. That is what we do. That is
what we have done. We have capped the annual increases in public transport
fees; the other side did not. What is the member going to do? He said that the
costs are too high. What is he going to do? We are seven or eight months out
from an election.
Mr W.J. Johnston : It is 262
days.
Ms R. SAFFIOTI : It is 262
days! Tell us your public transport policy. I remember that we came out with
Metronet probably about a year and a half from the election. We had a strong
public transport policy. Tell us what you are going to do.
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