ORC conundrum over bus changes

The Otago Regional Council has always acted in accordance with the law, but a consequence of that in relation to proposed public transport changes could mean it falls on the "wrong side" of the New Zealand Transport Agency, council chief executive Graeme Martin says.

Concerns about the impacts of the "Public Transport Operating Model" (PTOM) being introduced as part of the proposed amendment to the Land Transport Management Act 2008 were voiced at the council's policy and submissions committee yesterday.

The model, requiring all scheduled bus services to be segmented into units and contracted to the regional council, would apply to both Dunedin and Wakatipu services.

Councils were being urged to implement the new model even though the legislation behind it was not due to be put in place until next year, the council said.

Chairman Stephen Woodhead said it would cost the council a lot of money.

Mr Martin said under the model all services on a route would be the exclusive domain of the contract holder "24-7" but in Otago most routes were not big enough to make into the required units.

Given the size of the city's routes only two units could be created and in the Wakatipu one, making it difficult to see how competitiveness and stabilisation could be achieved.

"It's probably not a bad idea in Auckland, Wellington and Christchurch, but I don't see how it's a workable proposition in smaller regions."

The work involved in the changes was "absolutely horrendous" and defining the model for smaller regions might be better done by the bureaucrats themselves, he said.

"My firm view is this council will act in accord with the law ... a consequence of being lawful is being on the wrong side of NZTA," Mr Martin said.

Mr Woodhead said he could live with that.

The council was to discuss the issue with National MPs.

The ORC has major bus tenders up for renewal soon.

- rebecca.fox@odt.co.nz

 

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