Slashing fares for next month's Nightrider bus service from $5 to zero could save ACT taxpayers money, Territory and Administrative Services Minister Shane Rattenbury believes.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
While the proposition sounds contradictory, fare reductions in recent years have dramatically increased the cost effectiveness of the program.
During a three-month trial, conducted at the request of the Greens in 2010-11, the average cost per passenger came to $157. Fares ranged from $10 for trips to other urban hubs such as Belconnen, Tuggeranong and Crace and $5 for an urban loop.
Fare reductions in December 2011 and December 2012 led to a significant boost in patronage and a sharp drop in the net cost per passenger.
''MyWay records indicate 2847 boardings for the Nightrider service in 2012-13 at a total invoiced cost of $94,605,'' Mr Rattenbury said.
''This includes both operations and advertising. The net cost per passenger boarding was $33.23.''
A significant increase in patronage in 2013 could reduce this figure further even without a paid fare offset. Mr Rattenbury said $111,000 had been set aside for next month's Nightrider service and that of this about $35,000 was to be spent on marketing. ''The balance will be applied to operational costs,'' he said.
The service is a permanent fixture on the Canberra scene with the ACT government allocating a total of $300,000 over three years.
Mr Rattenbury said the return on the investment extended beyond getting people out of the CBD during the ''drinking season''.
''Nightrider is an important service for both transport and safety,'' he said.
''We want people to try it out, to get the benefits and also have an experience on ACTION buses, which is really a much better service than most people think.
''The short Nightrider period is a good opportunity to try this kind of fare trial and it will be interesting to see what effect this has on patronage.
''Many Nightrider passengers are young people who are also often more sensitive to price.''
The minister conceded that ''Nightrider traditionally has not been a moneymaker for ACTION''.
Extra buses will be on standby to ensure revellers will not be stranded if the free fares result in the service being swamped.
