Look At Aucklands Trains !
Over the last few months , I have taken a lot more interest in the Trains , sparked by the crazy proposal to spend at least $78 million to take 30-40 commuters a day to Papakura and back . It makes no sense , no matter how you try and justify it .
A couple of people have said 'Look at how Auckland has turned the trains around' , and how many passengers they get . So I thought I'd have a look at Auckland Transport's latest reports , and it's amazing what you can learn , or what can be hidden .
Auckland Transport runs the buses , the trains , bike lanes , carparking , all sorts of transport options . Actually , it looks like they contract most of those out . So their published accounts are very hard to pinpoint .
But here's an overview --
$467.5 million 'improving' public transport -- whatever the hell that means ?
$120.8 million improving roading .
$20 million improving parking .
Their 'operating funding' was $536.072 million -- that is ticket sales for buses , trains , parking meters and carparks .
Their expenditure was $1.892 BILLION !
The shortfall came from Auckland Council ( rates ) $480.485million and NZTA ( $205.231 million ) and finance revenue $617.42million .
Yes -- they spent 3 times as much as users paid . And yes , they borrowed nearly $620 million ! We are talking Auckland Transport -- a part of the Auckland Council . I wonder how much the entire council borrowed ?
I'm no great financial mastermind , but isn't this a bit like running a trucking company , charging out $600 , but it costs you $1800 to chrge that $600 , so you borrow some , and get some off your Uncle ?
Anyway , that is Auckland's concerns , but the point is -- their so-called model of how transport should be run , pointed out by a couple of Neighbourly people , is decided stuffed . You cannot run a business , or a transport network , if it costs you $3 for every $1 you get in -- that is stupid ! You can do a 'promotion' for a couple of weeks to get people interested , but there is absolutely no point using that as your business case . And even crazier -- why borrow to pay for these loses ?
So lets hope that with an upcoming election , here in Hamilton we get some people with a few business skills . Can the commuter train . Look at the buses , see which lose money , see if they can be turned around or changed , and balance that with a social need . I doubt if many people would begrudge a bus service ( or a train service -- although I doubt any will work around the Waikato ) losing a few dollars if it is being used , but if it costs 3 times what it earns ( like Auckland ) , or 8 times what it earns ( like the Commuter train ) , then don't even trial it .
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Winner winner!
Congratulations to the winners of our $100 Mitre10 vouchers:
Justine Terrill from Mount Albert
Suzette Gibson from Nelson
Soumya Manoj from Lower Hutt
Millie George from Richmond Hill
If you're a winner, get in touch here.
Not a winner this week? There's always next week!
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