How to pay for public transport?

Additional revenue from fare increase, Sydney - three scenarios (Independent Inquiry)

I was pleased to see the call earlier this week by The Age’s city editor, Jason Dowling, for tolling of roads to be introduced in Melbourne (Losing our way on roads).

He sees it as a way to reduce congestion and generate revenue for public transport improvements. Road pricing is something I’ve advocated on a number of occasions (here and here), but what particularly caught my eye in Mr Dowling’s article was his opening line:

“Everyone pays for public transport, first through taxes and then through fares, and it is time everyone had access to it, just as they do to roads”.

Few would disagree that Melbourne would be a more attractive place if it were as easy to access a train, tram or bus as it is a car. Somewhere along the line, however, the issue of cost has to be considered. Transport projects are very expensive. The State Government is spending about $2.5 billion on increasing the capacity of Victoria’s rail and road systems this year.

At that rate it will take many decades to improve the capacity of Melbourne’s public transport system. Just one project, the Regional Rail Link, is costing $4.3 billion in total and is only proceeding because the Federal Government is contributing $3.2 billion. Read the rest of this entry »