Public Transport in Victoria
Posted by: Jean max32080772
The recent geo-political climate has pushed government to re-think social policy and transportation to ensure continued growth and productivity in the economy. The free travelled provided by the VIC government recently and now half price fares until Jan 27 has provided relief. However, Vic gov should follow
the QLD approach of 50 cent fares. This has proven to highly valued amongst the public and also, stimulated the economy and allowed the public to spend saved funds in other goods and services. Do you agree?
the QLD approach of 50 cent fares. This has proven to highly valued amongst the public and also, stimulated the economy and allowed the public to spend saved funds in other goods and services. Do you agree?
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Comments 3
abarnes
Hi Jean
As a resident of NSW, I’m completely ignorant of the travel ‘shenanigans’ in Qld and Vic. But what economics taught me is that there is a cost to everything. These half price/free travel tweaks will come back to haunt them.
Reduced revenue from this area will result in:
- Reduced maintenance
- Longer time between renewals
- Reduced expansion
- Retention of older tech.
As for the economy; spending/saving psychology being what it is, I’m not sure that there is significant economic stimulation that comes from reduced faces, especially when you consider that fare reductions require billions in federal/state subsidies…the economic return is low. Some people take their savings and spend, spend, spend… others squirrel it away for hard times ahead.
Fare cuts may feel good now but degrade the system later. Cheap fares are politically irresistible because:
- they’re simple
- they’re visible
- they’re popular
- they provide immediate relief.
But they create structural underfunding unless the government permanently increases subsidies. Do Victorians want cheap fares, or do they want a high quality, modern, expanding transport system?
jtmorri
It is a nice idea. I believe the Victorian governments budget isn't great, and it may be a case that they can't afford it as an initiative. I thought the trains were privatised, so they do need to make a profit.
Jean max32080772
Personally, I think 50 cent fares should be a permanent offer to the Victorian commuters. Let’s help small businesses in melbourne come back 🙂