Queenstown's revamped bus network will get a $1 million annual input from taxpayers.
The NZ Transport Agency has confirmed it will contribute half the estimated $2 million cost of running a subsidised bus system in the Wakatipu Basin.
An NZTA spokeswoman said it was working with the Queenstown Lakes District and Otago Regional Councils on the plan, with final decisions expected to be made by the middle of the year.
The ''reliability and effectiveness'' of the existing network would be improved to cope with the Wakatipu's rising resident and visitor numbers, she said.
Meanwhile, the network's owner, Ritchies, wants to operate the new one.
Ritchies Transport Holdings director Andrew Ritchie, of Auckland, said the councils had briefed him on the plan and he was impressed.
''Ritchies will be a bidder.
''I think it's very positive. I definitely like what I see.
''With the congestion in Queenstown, it's good to see people actually invest in public transport.''
He would not comment on a proposed $2 flat fare, as it was ''not my area of expertise''.
''It's up to the councils to decide whether that is the best fit for their patronage targets.''
Announcing the plan last month, Queenstown Lakes Mayor Jim Boult said it was aimed at doubling the number of passenger trips to a million a year within 12 months of its introduction.
The $2 flat fare would be accompanied by a rise in downtown parking charges to encourage people out of their cars.
