A new government policy for public transport will allow councils to directly own and operate public transport services.
Transport Minister Michael Wood Photo: RNZ / Angus Dreaver
The government is touting its Sustainable Public Transport Framework as offering councils more flexibility and control while improving worker pay and conditions.
Transport Minister Michael Wood this morning announced it would replace the Public Transport Operating Model established in 2003, setting new objectives for public transport systems across New Zealand.
The suite of policies will be a combination of changes to the Land Transport Management Act 2003, and operational policy.
Wood said it would:
- Expand options for asset ownership including allowing councils to own and operate public transport services
- Improve transparency of costs, performance, vehicles and financial performance
- Include on-demand services in the policy, including ride-sharing like AT Local in Auckland
- Aggregate employee terms and conditions
- Encourage collaboration between regional and territorial councils in planning
- Make changes to other services like commercial and inter-regional operators
- Incentivise carbon-neutral fleets
- Set new objectives in the legislation
He said the current model had encouraged operators to squeeze worker conditions and pay, which meant operators could not retain drivers and were being forced to wind back services and timetables.
The new policy would prioritise mode-shift, better environmental and health outcomes, and fair and equitable treatment of employees.
"Improving the conditions of employees will make it easier to recruit and retain the workforce, allowing frequent and reliable services. This will also provide job security by allowing drivers the opportunity to maintain employment if there is a change in operator.
"The new model will also give local authorities more flexibility and control over how public transport is planned and delivered, so they can have a solution that works for their communities."
Councils having the option of owning assets and services rather than outsourcing could make it easier to plan networks and services, set fares and policies, and encourage innovation.
Political parties respond
National Party transport spokesperson Simeon Brown said the new system would take New Zealand's public transport system backwards by removing the competitive market-based approach to service delivery.
"An open tender process ensures transparency of costs, while competition keeps costs down," he said.
"Councils can already improve the pay for bus drivers, as we have seen Auckland Council and Auckland Transport undertake in recent months, but this is not an excuse to effectively bring the operating of these services in-house."
He said bringing services in-house would lead to a less efficient system, with more costs for taxpayers and ratepayers.
Green Party transport spokesperson Julie Anne Genter said greater public transport ownership would make faster, cleaner, more frequent public transport easier to deliver.
She attributed the policy changes to "years of political pressure from the Greens", and said significant increases in public transport investment was also needed to have a chance at meeting climate change targets.
"This needs to be backed with significant new investments in public transport right across New Zealand," she said.
Green MP for Auckland Central Chlöe Swarbrick said the previous National Party's approach was what had led, for instance, Waiheke's ferry to become one of the most expensive in the world, and she had been urging the minister to reverse the exclusion the service enjoyed.
"I am hoping that today's rebalancing towards public ownership is a sign of his intent to put people over profit permanently in the operation of our integral, truly public transport services."
ACT's Transport spokesperson Simon Court said the approach could lead to fewer buses on the roads.
"Taking responsibility away from private providers won't create more bus drivers and train conductors, it will stretch councils' limited capital further and lessen accountability on the provider. The result of this will be less buses on the road," he said.
He said the staff shortages in public transport was symptomatic of a wider problem in the New Zealand economy, and the minister should instead be looking at practical ways to tackle the shortage and increase resourcing.
"ACT says we need to do this by dumping the labour market test, industry specific wage requirements, and transfer restrictions. Foreign workers should be able to work for accredited employers so long as they are employed consistent with New Zealand law.
"This announcement reeks of Michael Wood getting a tap on the shoulder from his union mates and creating ill-thought-out policy."