Page 2875 - Week 08 - Wednesday, 24 June 2009
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fare box would be a higher percentage of the overall cost of ACTION. I think most people would agree that it would be a good outcome to reduce the subsidy so that more money can go to other things. That is a noble point. However, there are two ways you can make the fare box a higher percentage of the overall operation. You can either raise the fare box or you can make the overall operation more efficient. Perhaps there is a third way and that is to do a combination thereof.
What the Chief Minister fails to comprehend is that when you have a shock in a pricing system, like a 49 per cent shock, it may well be that people decide not to get on a bus—fewer people get the bus. In actual fact, overall revenue can go down when you drive up a price by that much. Simply increasing the price does not mean you are going to get more money. It could actually deter people from getting onto the bus in the first place. If we are genuine about trying to encourage people to get onto ACTION then surely putting a 49 per cent increase on the cost of a bus ticket is really not the best way forward.
The government have also said we have had very slow increases and fares have not been going up as fast as they have in other states. Whether that is the case or not, since it went from the ICRC to their control the government have to take responsibility for the price of bus tickets. Is this going to be a new trend? Is it going to be a new trend that we are going to have three per cent, three per cent, three per cent and 49 per cent? Is this going to be the new way of doing business? Surely that is not the best way. Surely having a gradual increase in fare prices is a better way forward. It certainly will not have as detrimental an impact to patronage as a 49 per cent increase will.
We are not at all happy with the amendment because we think it scoots around the real issue. The real issue is trying to stop this government from increasing bus fares by 49 per cent on Wednesday, a week from today. A week from today, the bus tickets go up by 49 per cent. This amendment calls on the ACT government to review the decision, or we could ask the government to review the decision. It has already gone through ACTION management and cabinet. It has been printed in the budget paper. I am sure they have had advice from Treasury. We have had advice from TAMS and many people. I cannot see a review coming back saying, “We’ll revert to the original system.” I cannot see it happening and I cannot see it happening before Wednesday. It will not happen before Wednesday. We have six days before the 49 per cent tax rolls into force.
I would have loved to have been a fly on the wall in the Greens party room when they were discussing this issue. I think there would have been a lot of competing forces for individuals as they were thinking about it. I find it interesting that a party that claims to be pro public transport, pro environment, pro student and pro low income earners would allow a 49 per cent tax on students. It seems to me a little bit over the top and a little bit rich that the Greens party would come to this decision.
We will be voting against the amendment. We will be curious to see what the government does. If the government decides to vote for the amendment, I imagine a member will therefore get up and there is a fair chance a motion will then get up. However, if the government votes no to the amendment, and we vote no, the amendment does not get up. Then you have the original motion on the table. What
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