– Do governments spend too much on roads?

Total passenger travel by mode in Australia (billion passenger kilometres) Souce: BITRE

The Australian Conservation Foundation (ACF) got a lot of press recently with its claim that “governments across Australia are spending at least four times more on building roads and bridges than on public transport infrastructure“.

The claim is in a new ACF report, Australia’s public transport: investment for a clean transport future, which argues for a rebalancing of the transport capital works budget, recommending that “two thirds should be spent on public and active transport measures and one third should be spent on roads”.

I agree with the ACF that more needs to be spent on public transport, but I don’t think the “roads vs public transport“ logic does justice to the complexity of the situation. There are a number of reasons why more public funds are spent constructing roads than rails.

One is that people drive much more than they use public transport. According to the Bureau of Infrastructure, Transport and Regional Economics (BITRE), Australians travel almost eight times as many kilometres by car as they do by bus and rail-based public transport. The money is going where the demand is. If you accept the ACF’s numbers, public transport is actually getting a disproportionate share of public construction expenditure. Roads are needed even if travel is confined to foot and horse-drawn vehicles. The Hoddle grid in Melbourne and the avenues and streets of Manhattan were designed before cars were invented – land has limited value if it can’t be accessed.

Construction expenditure doesn’t in any event tell the whole story. Most funding for public transport comes via operating subsidies. Although getting comparable numbers is hard, Sydney University transport academic, Professor John Stanley, estimates that in states like NSW and Victoria, total public funding for public transport and roads is probably pretty nearly equal. In his 2008 report, Public transport’s role in reducing greenhouse gas emissions, Victoria’s Commissioner for Sustainability noted a significant shift in funding priority from roads to public transport at the State level.

Another reason roads are important is for the distribution of freight within the metropolitan area. According to BITRE, the number of tonne kilometres of urban freight transported by road within Australia’s eight capital cities in 2007/08 was more than five times higher than it was in 1971-72. There is simply no practical alternative to road for tasks like restocking those hundreds of supermarkets that supply suburban households with food and household goods.

But most importantly, roads are also extremely important for public transport. For example, in Melbourne, the Doncaster Area Rapid Transit (DART) system, the Airport-CBD Skybus service, and the city’s three new orbital Smartbus transit services, all use buses. Because they use the existing road network, these systems do not require significant new land acquisition and construction. Some trunk lines might in time justify conversion to light rail services as patronage increases, but they too can use existing roads rather than require a dedicated right of way.  Read the rest of this entry »


Should public transport users pay their way?

The peak industry body, Tourism and Transport Forum Australia, got itself into hot water with the media last week. The Forum suggested in a new report, Meeting the funding challenges of public transport, that eligibility for concession fares should be drastically restricted.

The brouhaha was unfortunate because the Forum’s underlying contention – that public transport in Australia should be operated on a full cost-recovery basis – is worthy of closer examination. Closer examination, that is, provided we’re talking about recovering full costs from those who can afford it!

At present, fares only account for approximately 36% of public transport operating costs across Australia’s five largest cities according to the Forum’s consultant’s, LEK. They say the rest comes from Government subsidies and is low compared to an international average of 60%.

The challenge facing governments in Australia is simple enough. Public transport capacity has to increase enormously to deal with expected higher demand driven by issues like peak oil, climate change and unprecedented population growth. For example, patronage has already grown 5% p.a. over the past five years in Brisbane and Melbourne. Read the rest of this entry »


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 »