Metlink fares to rise by 3.1%, off-peak discount drops again

Public transport fares in Wellington will increase later this year, and the discount for off-peak travel will be reduced, after a vote by the Greater Wellington Regional Council on Thursday.

Fare Increases and Timing

Metlink’s base fare will rise by 3.1%, and the off-peak discount will be lowered from 30% to 20%. However, these changes will not take effect until after contactless payments using debit and credit cards are activated on the Snapper system.

Officials have indicated contactless payments will begin “mid to early April,” with fare changes following within six weeks.

Impact on Passengers

For commuters traveling between suburbs like Karori, Khandallah, Lyall Bay, and the city centre, rush-hour fares will increase from $4.53 to $4.67. Off-peak fares will rise from $3.17 to $3.74. A 1.5% card fee will be added for contactless payments.

Financial Considerations

Metlink estimates its fare revenue this financial year will be approximately $3 million lower than budgeted. Officials attribute this to declining train passenger numbers and a decrease in bus ridership due to socio-economic factors, including flexible work arrangements, a slower economic recovery, and unemployment.

Council Debate

Councillors debated the size of the fare increase and its timing, originally slated for July. Council chairperson Daran Ponter proposed moving the increase forward to mitigate potential financial difficulties. “We could exhaust all of our transport reserves as a consequence of stuff that is happening on the network right now,” he said. “It means we’ve got no buffer in the next financial year when many of these things could still continue to play out.”

Ros Connelly, chairperson of the regional council’s public transport committee, stated the 3.1% increase represented a balance between economic prudence and public affordability. Councillor Adrienne Staples favored a 4.1% increase to lessen the burden on ratepayers.

Previous Fare Changes and Revenue Targets

Last year, Metlink increased fares by 2.2% and reduced the off-peak discount from 50% to 30%. This financial year, fares and advertising income are projected to contribute less than the targeted 25.1% of Metlink’s total revenue, with a target of 25.7% set for the following year.

NZ Transport Agency Waka Kotahi (NZTA) has established expectations for public transport providers regarding the proportion of revenue generated from fares and advertising.

NZTA previously set a target of 42% for Metlink, a figure councillors said would require fare increases of up to 70% to achieve.