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Funding public transport

Funding public transport

Updated 20 July 2012 11:38am

trolley busIn Wellington, as in most cities throughout the world, fares do not cover the full cost of providing bus and train services. To cover the difference, Greater Wellington spends about $45 million each year to purchase services on behalf of the region’s residents. 

Two thirds of this amount comes from regional rates and the other third comes from road users through Land Transport New Zealand. This is to recognise the contribution which buses and trains make to relieving road congestion.

Most bus and train services in the Wellington region are provided on contract to Greater Wellington. Each contract is awarded after a competitive tendering process. Greater Wellington usually specifies the route, timetable and fares and awards the contract to the operator who will provide the service at least cost. Our strategies for the purchase, or procurement, of these services are guided by clear legal requirements.

All vehicles used must comply with minimum vehicle quality standards.

Greater Wellington funds a proportion of the difference between child fares and the equivalent adult fare.

Funding is provided to city and district councils for bus stops and other facilities for public transport users.