Catching public transport in Queensland will soon cost just 50 cents. Are cheap fares good policy?
As part of a six-month trial, public transport fares in Queensland will soon be slashed to just 50 cents per trip for everyone.
- As part of a six-month trial, public transport fares in Queensland will soon be slashed to just 50 cents per trip for everyone.
- Very-low flat fares have become fashionable policy as governments respond to cost of living pressures around the world.
- “Captive” users of public transport – who have limited access to private vehicles and few alternatives – would surely welcome such schemes.
The benefits aren’t spread evenly
- But as a group, commuters in the inner and middle suburbs of Brisbane and tertiary students will enjoy most of the benefits.
- Passengers travelling from Yeppoon to Rockhampton, or from Proserpine airport to Airlie Beach, will get inter-city travel at an amazing price.
Will people ditch their cars and get back on public transport?
- Affordable fares are only one of the motivators that can encourage a shift to public transport.
- Our previous work has examined how spatial layout and the availability of public transport affect its patronage in different cities.
- But with limited public transport coverage across much of Queensland, heavily discounted fares may not lead to a dramatic uptake in use.
What will the social and economic impact be?
- This leads to a bigger debate on how we should price public transport and who should pay for it.
- Even when public transport is made very cheap or even free, someone ultimately has to pay for it.
- Everyone in Queensland will now pay 50 cents, no matter how far they go, which creates strong horizontal equity between travellers.
Are there other ways to subsidise public transport?
- One alternative is to directly target programs to those in need, such as by ring fencing benefits to a smaller area.
- This was recently tested in Los Angeles under a program called Universal Basic Mobility.
- Free or heavily discounted public transport can be a good idea – where it can help meet social goals.