The way subsidies are used to improve public transport in Queenstown was questioned by councillor Gillian Macleod at a utilities committee meeting yesterday.
ORC has contracted local bus company Connectabus to extend its services to include Kelvin Heights, Arthur's Point and Quail Rise from July 14.
Subsidies from the Otago Regional Council and the New Zealand Transport Services go towards the extension for a trial period of 32 months, but will not go towards lowering the ticket prices.
After this period the services can become permanent, if there are enough users to make it commercially viable for the contractor.
Cr Macleod said it would make more sense to lower the price for the existing routes in order to increase user numbers.
"Will it make more people take the bus by including new areas, if the public still think the public transport is too expensive? I am really disappointed the existing route is not subsidised instead," she said.
"A $6 return ticket from Frankton to Queenstown for a child is considered too expensive by many locals.
If we made it free or cheaper to take the bus at the core route, we would see user numbers explode.
It is the wrong way around to expect numbers to go up before it is subsidised."
Queenstown Lakes Mayor Clive Geddes disagreed, saying the extension of the existing routes would bring in more users of public transport.
"The council's strategy is to give public transport priority on Frankton Rd, and to extend the network to include users in more areas," Mr Geddes said.
Committee chairman John Mann pointed out the service would never be completely free, saying it would be paid either by the users or the ratepayers.
Looking to the future, the mayor said QLDC might take over public transport in Queenstown from the regional council.
"ORC has agreed in principle to delegate their public transport in Queenstown to QLDC."
"It is my view we should aim to have a cohesive public transport system run by the council, without having to tender it. The tender process will sink us.
We need to find some space in the legislation to realise the vision," Mr Geddes said.
