Labour’s fare cap is another taxpayer-funded free ride

Labour’s plan to cap public transport fares would pour another $65 million into a system which is already 87 percent subsidised, up from 61 percent in 2015/16.

Taxpayers’ Union spokesperson Tory Relf said:

“Taxpayers are already picking up almost 90 cents in every dollar spent on public transport, which the average subsidy last year of $17.65 per boarding. Households already subsidise public transport to the tune of $1,373 a year, and Hipkins wants to slap another $65 million down for them to pay.”

“This is dressed up as a cost-of-living policy, but it does nothing for the vast majority of households. Only 6 percent of Kiwis are regular public transport users, and nearly 90 percent of rides are in Wellington, Auckland, and Christchurch.”

“If Labour is serious about easing pressure on families, it should commit to genuine tax relief so Kiwis can keep more of what they earn - not another niche subsidy for a service most people rarely use.”