National to can Govt's public transport youth discounts if elected

August 30, 2023

Half-price transport for under-25s would also be on the chopping block under National's tax plan.

National says it wants to revoke funding for free public transport for children under its tax plan, while also effectively doubling the price of fares for youth under 25.

The policy plan, announced today, would see the Government's array of Budget 2023 fare subsidies reprioritised for other initiatives if the opposition party wins the election.

National suggested the "Community Connect" programme of youth fare discounts — first introduced by the Government in July — was "badly designed and difficult to implement".

National leader Christopher Luxon speaks to media after the release of the Government's 2023 Budget.

The party's plan read: "National will end funding for Labour’s 'Community Connect' programme of additional public transport subsidies in Budget 2023, which was badly designed and difficult to implement nationwide."

At Budget 2023 in May, the Government announced it would permanently axe fares for those under 13 and keep half-price discounts for young people aged 13 to 24.

The new initiative came after a temporary half-price discount for all passengers came to an end. The Government first introduced the discounts as a cost-of-living measure last year, alongside fuel tax and road user charge subsidies.

The National leader revealed more details ahead of the party's tax policy announcement.

Community Services Card holders had also been given permanent half-price transport fares under an initiative announced at Budget 2022.

National's deputy leader Nicola Willis said today that her party still wanted to see tertiary and other long-standing concessions continue.

"We want to see students and others continue to get discounted fares, as has long been the case," she told Newshub.

Outside of rush hour, SuperGold card holders have had access to free public transport since 2008, whilst tertiary students can typically access specific discounts depending on what council and operator is running their bus, train, or ferry service.

However, Labour is dismissing the fantasy plan.

But Willis said there is "not good evidence" that the Government's recently-introduced programme of additional fare discounts was necessary.

"There is not good evidence that this is a major barrier to public transport use. We prefer to give people the money direct into their bank accounts so they can make choices about what they spend it on," she told Newshub.

Additionally, National's tax plan stated: "Some regional councils have struggled to screen passengers for age, meaning the rollout of the policy has not proceeded as planned."

Announced in May, the Government's initiative for permanent half-price transport for youth was set to begin from July whilst budgeted to cost $327 million over four years.

Public transport fares, prescription fees and early childhood care were all winners in this year's Budget.

But the change, enacted with only a month and a half of warning, caught out some local councils which struggled to make the change in time.

Notably, Wellington public transport users still aren't able to use the new fares, with a roll-out through the city's Snapper card happening on September 1. Other councils like Auckland, Christchurch, and Dunedin successfully made the change on July 1.

The plan to revoke the subsidies has been slammed by the Greens, who have been advocating for all fares to be removed from public transport.

Co-leader James Shaw said: "There is an inherent cruelty baked into National’s plan.

"'[T]hey want to double the price of public transport for people on low incomes or with a disability to help pay for tax cuts that benefit high-income people the most."

Transport spokesperson Julie Anne Genter says the $12 billion plan will help reduce emissions.

The Government's fare subsidies programme also included half-price fares for people using total mobility services, which are intended for Kiwis with mobility impairments.

In its new policy, National has promised tax relief for the "squeezed middle".

The party's tax plan would cost $14.6 billion over four years and be funded by four tax changes, along with other "reprioritisations" and "savings".

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