Queensland government locks in 50c bus, train fares
Queenslanders have had 50c public transport fares locked in for the next four years, but not all economists are sold on the $1.5bn commitment.
Queenslanders have had 50c public transport fares locked in for the next four years, but not all economists are not sold on the $1.5bn commitment.
The six-month trial of the cheap fares was dubbed a success by the state’s Liberal National government after patronage rose by 18.3 per cent compared to the year prior.
The recently elected Crisafulli government pledged during last year’s election that is would lock in Labor’s signature cost-of-living relief policy, which was launched in August ahead of the voters heading to the polls in October.
Transport Minister Brent Mickelberg said the spend was an “investment” in reducing congestion and helping Queenslanders' hip pockets.
“Governments make decisions around how they choose to spend money and allocate funding,” he said.
“We think it’s a worthwhile initiative, particularly in the middle of cost-of-living crisis. So we’re very, very proud to make this commitment to 50c fares permanent.”
In the six-month 50c fare trial, southeast Queensland commuters took 93.3m trips and saved more than $181m.
Regional patronage lifted about 20 per cent year on year across the 16 regional urban bus networks.
Ferries recorded the biggest rise in travellers, up 42.8 per cent, followed by light rail (up 27.5 per cent), rail (up 18.6 per cent) and bus (up 15.8 per cent).
The funding commitment follows last month’s mid-year economic updated, which revealed state debt would balloon nearly $46bn to $218bn over the next four years, with treasurer David Janetzki promising to rein in the figure at the June budget.
AMP chief economist Shane Oliver Credit questioned why the government had followed through with the $1.5bn spend with such a task ahead.
“To me, it’s dodgy policy,” Dr Oliver said. “I can’t see the logic of it.
“There’s also the problem that Queensland has a budget deficit problem. Normally when you have those sorts of problems, you’re looking for ways to close the gap and eliminate the deficit and pay down debts.
“This does nothing to help do that. These things should be run to at least cover their costs.”
The economist echoed concerns by rating agency S & P Global, which last week criticised state and territory governments nationally for inflationary spending.
“It is confusing messaging,” Dr Oliver said.
“The messaging from the mid-year update was that things are tough, there has to be cutbacks or revenue raising measures, or some combination of those two things. This seems to be totally contradictory to that
“This seems to me that the government has bought into a populist decision made by the previous government, which was desperate at the time to get re-elected.”
Mr Mickelberg rejected the criticism.
“I would argue that it was an important issue that was raised in the election … we’re delivering on that commitment,” he said.
“Our credit agencies will discuss state budgets and federal budgets and they’ll have their own view. Ultimately, my focus as the Minister for Transport and Main Roads is on ensuring that we deliver the services that Queenslanders need.”
Half-price fares for the private AirTrain service, which connects Brisbane CBD to the airport, have been cut following the conclusion of the trial.
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