Raglan resident John Lawson has written to the Waikato Regional Council CEO, Bob Laing asking him about the high cost of the route 23 bus services. John an enthusiastic supporter of public transport wrote first to the Local Government ombudsman who suggested that first he write to the CEO of WRC.
John Lawson’s letter to Bob Laing:
Sent: Thursday, 19 July 2012 2:43 p.m.
To: Bob Laing
Subject: Raglan bus
Dear Mr Laing
I am concerned that WRC appeared to be spending some $650,000 (subsidy and fares at 2010 levels) on the Raglan bus service, but not getting value for money, in particular with the cutting of the Sunday and Public Holiday services. The Education Ministry publishes rates of $55.34 per day per bus and $2.71 per km. Applied to the service previously run on the Raglan service that would cost about $325,540. The new service to Glen Tui Lane would have cost $31,295 at the Ministry rates and the axed Sunday and Public Holiday service would have cost $38,715. My understanding is that the extra bus cost $60,000 and that $20,000 was saved by cutting the Sunday and Public Holiday services. I understand that it is planned to recover the difference by further raising fares.
The average fare between September 2010 and October 2011 was said by your staff to be $2.54 for all trips and the Sep 2010 to Sep 2011 passenger increase 21,454. 21,454 extra $2.54 fares total $54,493. Adding a fare increase averaging, say 30%, brings that to a $70,841 increase in revenue in the year to September 2011. Adding the 30% fare increase for the pre 2010 passengers would increase fares collected by about $81,000.
Therefore it seems we are getting a service which would cost $325,540 + $31,295 – $38,715 = $318,120 at the Ministry rates, for around $650,000 + $70,841 + $81,000 = $801,841. The Ministry of Education rates are for older buses, but it is unlikely that they would pay more than $100,000 for newer buses to be available, so the difference is in excess of $350,000. This does not seem good value for money and unfair to Raglan bus users and ratepayers. What can be done about it?
Yours sincerely
John Lawson.
Mr Laing has replied to Mr Lawson saying that he has referred the email to appropriate staff.