New Cities Minister Jamie Briggs says increased fares needed for states to win project funding and recover costs
Electric train on the Onkaparinga river bridge ... federal Cities Minister Jamie Briggs said in order for states to win funding for projects, ticket price increases may be needed to recoup more of the cost of public transport.
JACKSON GOTHE-SNAPE TORY SHEPHERDThe Advertiser
COMMUTERS face paying higher public transport fares to secure infrastructure upgrades like tram line extensions and train electrification, the Federal Government has flagged.
New Cities Minister Jamie Briggs said in order for states to win funding for projects, ticket price increases may be needed to recoup more of the cost of public transport.
He said that because state governments are reluctant to upset voters, “there may be a role for (the federal Government) to be the big bad guys” to make new train and tram projects profitable enough for development.
The comments came at the release of a report into sustainable cities yesterday where Australia’s Chief Scientist Professor Ian Chubb said: “Australian cities are under pressure”.
The report, from top engineering, science and humanities academics, claims Australia needs $350 billion worth of infrastructure spending over the next 10 years.
The Government is spending less than half a billion on South Australian infrastructure projects in 2015-16 according to the Department of Infrastructure.
After launching the report, Mr Briggs told The Advertiser he wants to “unlock the enormous amount of capital” around the world by making public transport projects more attractive for private investment.
Cities Minister Jamie Briggs
Cities Minister Jamie BriggsSource:News Corp Australia
“(Investors) need an incentive to be involved, they’re not doing it as a community service,” Mr Briggs said.
Public transport in South Australia costs more than $500 million each year, but makes less than $180 million in income.
Mr Briggs has asked a Cities Taskforce in collaboration with the states to look at options like better use of technology and revising ticket pricing to be more “dynamic” during peak periods.
“There may be a role for us to be the big bad guys who tie funding to introducing some of those reforms to make it more efficient, which your readers won’t love, but they’ll get a better service,” he said.
State Transport Minister Stephen Mullighan welcomed the opportunity to work with the Commonwealth to co-fund public transport projects, however he added that his Government “would be reticent to see fares increase and discourage people from using public transport”.
The Federal Government is researching public transport systems in New York and Tokyo, and smaller overseas cities comparable in size to Adelaide.
“That is part of the work that we have to do, look around and see what does work, why it is so expensive, what are the key factors,” Mr Briggs said.
One alternate approach to financing infrastructure will be announced by Labor leader Bill Shorten today.
If Labor wins the next election, Mr Shorten is promising to create a $10 billion fund to invest in infrastructure.
He has earmarked the Gawler Line electrification as one of the first projects that Labor will support.