Opinion: Tourists getting more benefits from 50c fares than northern Qlders

Qlders need better transparency about how much the 50c fare relief will cost, who is actually getting the benefits and where else we could spend these public funds, writes economist Colin Dwyer.

Premier Steven Miles at the Mango Hill Train Station announcing the new 5-c fares deal. Picture: Annette Dew

It’s widely acknowledged the state government’s 50c fare subsidy scheme is benefiting the southeast far more than northern Queensland. But while we are all paying for the subsidy we need better transparency about how much it will cost, who is getting the benefits and what else could we spend these public funds on.

It comes after both Premier Steven Miles and Opposition Leader David Crisafulli announced the fares would remain in place indefinitely should the respective governments be elected in October.

After five weeks of 50c fare relief there’s a significant cost blowout emerging. Originally costed at $150m, we estimate there will be around 30-40 per cent cost blowout.

With a weekly average cost to Queensland taxpayers of $7.5m the total cost over 26 weeks is expected to blowout to between $195m and $210m, that’s an extra $45-$60m.

All Queenslanders will bear this cost burden but aren’t getting the same benefits.

With inadequate public transport systems in every northern city and region and very low comparative public transport use, the southeast is benefiting far more.

Premier Steven Miles announcing the 50c fares would remain in place should he be elected: Picture: Lyndon Mechielsen/Courier Mail

But it’s not just local SEQ residents who are being subsidised by their northern neighbours it’s also tourists from NSW, Victoria and South Australia who are being subsidised by northerners. In addition, overseas tourists public transport use in SEQ is being subsidised by northern residents.

Of great concern, are tourists getting more benefits from this scheme than northern Queenslanders?

With an estimated $50m cost blowout and total cost of $200m this money could be spent with better community benefits.

The state government says it has an 80/20 intergovernmental funding arrangement on the Bruce Highway. This means a $200m state contribution turns into $1 billion. That would fund sufficient new fast tracked overtaking lanes, fast track replacement of old comparatively unsafe very narrow bridges, repair road defects faster and install more run off road barriers, which together, will save North Queensland lives and reduce the serious injury rate on the northern Bruce.

Queenslanders need better transparency about how much the 50c fare relief will cost, who is actually getting the benefits and where else we could spend these public funds.

Originally published as Opinion: Tourists getting more benefits from 50c fares than northern Qlders