MR SMYTH (continuing):

Independent Competition and Regulatory Commission-ACTION pricing for the period 1 July 2001 to June 2003-Final determination, dated May 2001.

That the Assembly takes note of the paper.

Mr Speaker, I present the Independent Competition and Regulatory Commission's report, 'ACTION Pricing for the Period 1 July 2001 to 30 June 2003, Final Determination', pursuant to the Independent Pricing and Regulatory Commission Act 1997.

This report is the third review of ACTION's fares by the Commission and I thank the Senior Commissioner, Mr Paul Baxter, for his report.

The Government referred ACTION bus fares to the Commission to meet the price oversight requirements of the National Competition Policy and to ensure transparency of public transport pricing.

Mr Speaker, I welcome the Commissioner's Direction on ACTION fares for the next two years.

In summary, the Commission directed that:

Average fare price increases for ACTION in the financial year 2001-02 be in line with CPI movements for the 12 month period ending March 2001, less the estimated impact of the goods and services tax plus two percentage points. This allows for an average fare increase of 5.94%;

Average fare increase in 2002-03 be in line with CPI movements for the 12 month period ending March 2002; and

Attention should be given to reducing the discounts currently available on periodical tickets while maintaining concession tickets at 50% of the full adult equivalent and student tickets at 35% of adult fare.

The Commission also noted that:

Granting the fare increase will provide a higher proportion of cost recovery from fares while mindful of the need for ACTION to continue to achieve cost efficiencies in the operation of bus services.

Mr Speaker, this Government is committed to providing effective, efficient and accessible public transport for Canberrans. In recognition of the important role of public transport in the community, the Government contributes significant funds to maintain ACTION's current level of service, particularly off-peak services and fare concessions.