A directive from the Government – shifting public transport funding away from being subsidised by rates, to a user-pays approach – is set to see bus fares in Invercargill increase.
Submissions on Invercargill City Council’s Draft Annual Plan 2025/2026 are now open.
Among the proposed fees and charges in the draft plan is a significant change to bus fares within the city. This is in line with central Government requirements to reduce the proportion of funding the service receives via rates and national funding subsidies, and instead generate additional revenue from network users.
Councillor and Infrastructure and Projects Committee chair Grant Dermody said while Council was responsible for setting the fares it charged people using public transport, it also had to follow nationwide policies.
“The Government wants to see public transport systems throughout the country operate in a more financially self-sustainable manner. At the moment, each bus trip in Invercargill costs $20 to deliver, but fares range between $1.10 and $3, representing a significant shortfall. Meanwhile, about 65 percent of our passengers either pay a discounted rate, or travel for free,” he said.
“Council has to strike the right balance between following directives and policies implemented by Government, and ensuring the way in which we put these into practice is manageable for our community.”
The total annual cost to run Invercargill’s bus service was $3.19 million, while the fare changes proposed in Council’s draft plan were forecast to generate approximately $266,000 of revenue per year. Council’s proposed fare increase would cover eight percent of the cost of the service: still lower than Government’s target of 17 percent for 2025/2026.
“We know that this will have an impact on people using our bus service, but it is important that people share with us exactly what this change will mean for them,” Dermody said.
The development of the proposed fare changes had taken issues including patronage and affordability into consideration, he said.
“The submission process is a critical part of understanding how our community engages with, and uses, our services and infrastructure. This is an opportunity for people to provide feedback on what the future of public transport looks like for them – whether that is our bus service, or other offerings that better cater to their needs. To be able to make the right decision for our community, we need people to make their voices heard.”
| Current fare | Proposed fare |
| Cash fare: $3 | Cash fare: $5 |
| Card fare: $2.20 | Card fare: $4 |
| Gold Card fare (peak travel): $2.20 Gold Card fare (off-peak): Free |
Gold Card fare (peak travel): $5 cash fare, $4 card fare Gold Card fare (off-peak): Free |
| Community Services Card fare: $1.10 | Community Services Card fare: $2 |
| 13 – 24 year olds: $1.10 | 13 – 24 year olds: Cash fare $5, card fare $4 |
| Under-13s: Free | Under-13s: Free |
For more information about the Draft Annual Plan, to view supporting information and documents, or to make a submission, visit www.letstalk.icc.govt.nz
Supporting information and documents, as well as submission forms, were also available at Te Hīnaki Civic Building, Invercargill City Libraries and Archives, Murihiku Marae, and the Bluff Service Centre.
Consultation will close on 13 April. Hearings will take place throughout April, with Council’s elected members set to deliberate on the draft plan in May. The Annual Plan 2025/2026 will then go up for adoption in June.
