Government says no to free public transport after over $350 million fuel tax cut

Last month, Government responded to student-led organisation Free Fares’ petition opting not to remove public transport fares for tertiary students.  

This comes after Government’s fuel tax cut ended, which was estimated to cost $350 million for three months – while half-price public transport would cost $25 - $40 million.  

The extensions on these subsidies, including a cut to diesel road user charges, would cost an extra $718 million to the end of June. 

The Petitions Committee’s report said subsidising fares further would “reduce the revenue available to support public transport services”, such as improving workforce conditions. 

The Committee noted half-price fares had been continued for under 25-year-olds, Community Service Card holders and Total Mobility Users, while under 13-year-olds could travel for free. 

This was estimated to benefit 2.2 million people, but Free Fares wasn’t satisfied. 

The organisation wanted free public transport for all tertiary students as well.  

“It’s something there's support for and there's a mandate for”, Free Fares spokesperson and Victoria University law student Mika Hervel said. 

“We know we're in a climate crisis and a cost-of-living crisis, and we need to pull every lever to respond to those situations.”  

Free Fares was created in 2021 and is backed by over 80 organisations including Greenpeace, multiple city councils, and even Massey University.  

Hervel said the current half-price fares are “a step in the right direction” but not enough. 

“We’re just asking them to go that one step further and make it free for those groups, which would cost money… but everything costs money.” 

He said providing free fares “would be a really good way to incentivise a mode shift” from private to public vehicle use. 

Free public transport would result in fewer individual vehicles on the road, benefiting everyone and the environment. 

Free Fares’ petition stated, “Transport is New Zealand’s fastest growing source of greenhouse gas emissions”, a key reason to encourage public transport use. 

Hervel said another driver for free public fares was to help young people studying as “student poverty is a real thing”. 

Third-year photography student Kaea McGregor drives up to 30 minutes from Johnsonville to Massey’s Wellington campus most days. 

McGregor said she and her three flatmates would “100%” train to university if public transport was free.  

“We already pay so much to just live here and go to uni. I think it’s the best thing for students to have free transport,” she said. 

Zach Cornelisen, third-year Massey screen arts student, lives in Island Bay and spends up to $20 a week taking the bus to the Wellington campus. 

He said, “I'd spend the extra money on my university fees and food,” quoting the cost-of-living crisis. 

“[I] would love free public transport fares because then it encourages more people to use public transport, so there are less emissions, while helping our poorer community members.” 

Luxembourg was the first country to make public transport free in February 2020, Malta was the second in October 2022. 

Free Fares had continued to meet with members of parliament to discuss the benefits making New Zealand the third. 

Minister of Transport David Parker declined to comment when contacted by Massive.