Labour vows to put $20-a-week cap on public transport, $10 outside main centres

16 minutes ago

Labour has vowed to cap public transport fares at $20 a week in main centres and $10 everywhere else if elected.

Its fare cap policy announced on Wednesday would put money back into New Zealanders' back pockets, said leader Chris Hipkins.

"This is real cost-of-living relief. It means cheaper commutes, more money left at the end of the week, and a public transport system that works for everyone."

The cap, which would be introduced on 1 July 2027, is $20 in Auckland, Wellington and Christchurch, and $10 everywhere else.

The party said it was higher in main centres because they offered more services, that cost more.

The policy would cost about $65 million each year, using about 1 percent of the National Land Transport Fund, Labour said.

Labour leader Chris Hipkins

Photo: RNZ / Samuel Rillstone

Labour's transport spokesperson Tangi Utikere said public transport should not be a luxury that some cannot afford.

"We want people catching buses, trains and ferries more often because that means lower household transport costs, less congestion on our roads and stronger public transport networks."

The fare cap would apply across buses, trains and some ferries, but there are some exceptions.

InterCity buses, the Capital Connection, Te Huia and Mainlander trains, and Waiheke ferries would not be included, nor would cash only bus services like those in Marlborough.

Labour's transport spokesperson Tangi Utikere

Photo: RNZ / Samuel Rillstone

Labour said most existing ticketing systems already supported a weekly fixed fare, and public transport systems had sufficient capacity to cope with extra patronage.

The party estimated people would save an average of about $25 each week, or $1200 each year, depending on how much they travel.

The fare cap was Labour's first policy announcement in more than six months.

Hipkins had repeatedly said the party would wait to announce further policies until it saw the state of the government's finances in this year's Budget, which was delivered at the end of last month.

Labour will also campaign on a narrow capital gains tax to fund three free doctors' visits, a 'future fund' to invest in New Zealand businesses and infrastructure, low-interest loans for GPs, free cervical screening for 25 to 69 year olds, and an increase to the video game developer rebate.

Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.