The Government’s shift in approach - such as allowing councils to run bus services directly, rather than through companies, and making it easier to pay drivers more - was significant, Mr Hawkins said.
However, this would not fix everything and existing funding through avenues such as Waka Kotahi NZ Transport Agency appeared insufficient, he said.
"We still need greater investment in public transport, to meet both our environmental and social wellbeing goals, and that means the Government have to look beyond what is currently funded by Waka Kotahi," Mr Hawkins said.
Letting councils own and operate services showed acceptance the private sector would not always deliver results communities deserved, he said.
"It will also reduce barriers to improving pay and conditions for bus drivers at a time when they are, understandably, in short supply."
Transport Minister Michael Wood’s office said public transport services would continue to be funded from fares, a local share from public transport authorities and the national land transport fund.
Any additional funding would be considered as part of developing a 2024 Government policy statement on land transport.
The Government had also set aside in its 2022 Budget $61million over four years to fund improved wages and conditions for bus drivers, $137million over 12 years to support the roll-out of bus decarbonisation initiatives and $25million a year to facilitate half-price fares for Community Services Card holders.
This was on top of half-price fares for all passengers until the end of January next year.
Mr Wood said the old model had "encouraged operators to squeeze worker conditions, pay and opportunities, preventing public transport from living up to its full potential".
Mr Hawkins said it remained the view of the council that public transport responsibilities should sit with the city council, rather than the Otago Regional Council.
Mr Hawkins suggested if the regional council did not agree, the new model "hints strongly at far greater weight being given to city councils in the planning of services and infrastructure".
Mr Wood’s office said the regional council would need to agree before there was any transfer of operations to the city council.
Queenstown Lakes Mayor Jim Boult said the Government had made a step in the right direction.
It was evident something was fundamentally wrong with the system, he said.
"It’s no secret we’ve been unhappy with our local service for some time," Mr Boult said.
"With already limited routes and frequency, the service is being even further curtailed by staffing shortages."
Covid-19 and winter illnesses had taken their toll, but wage levels and working conditions were contributing to challenges, he said.
Mr Boult said he was delighted to see conditions of workers in the public transport sector being dealt with.
The services were a lifeline for many, and those who kept them running should be looked after and rewarded appropriately, Mr Boult said.
He hoped it might become easier for territorial authorities to operate public transport.
"As a district council, we are closer to the needs and wants of our locals, more so than a regional council, and we can see what changes need to be made to deliver a really game-changing service."
Decarbonising bus fleets should be a priority, not left to years to come when contracts were up for renewal, he said.
Otago Regional Council chairman Andrew Noone said the council welcomed investment in public transport and Government zero carbon commitments.
