Re: Melbourne - Fare Increase

[Chris Gordon <cmgord@VICSIG.alphalink.com.au>]

> > What are you on about? Since when has public transport been classified
> > differently to anything else, there is no split in the percentage of GST
> > payable, it was straight 10% from July 1st to advoid confusion (heh, nice
> > try)

Ok, so this fare increase is only indirectly GST related (ie the GST
effect on CPI).


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FROM THE MINISTER FOR TRANSPORT

DATE: Monday, May 15, 2000 


HOWARD GOVERNMENT'S GST FORCES UP PUBLIC TRANSPORT FARES

The Minister for Transport, Mr Peter Batchelor, today announced details
of new public transport fares to be applied from 1 July, 2000, due to
the Federal Government's introduction of the Goods and Services Tax
(GST).

Fares on regional rail, coach and bus services will rise by 2% and those
for metropolitan trains, trams and buses will rise by 5%.

Announcing the increase, Mr Batchelor said the State Government had gone
through an exhaustive process to ensure that the fare increases imposed
because of the GST are kept at the absolute lowest amount for commuters,
while ensuring that the changes are fair to the private sector transport
operators.

"The Government has been able to achieve a better than expected outcome
for the travelling public, particularly for Victorians living in
regional areas. The Bracks Government has a very strong commitment to
working with the transport operators to increase patronage and clearly
minimising the impact of the GST is an important component of this."

"In determining the post-GST public transport fares we were committed to
ensuring an open and transparent approach that stood up to scrutiny by
all stakeholders. The Government, through the Office of the Director of
Public Transport, has consulted with the Australian Competition and
Consumer Commission (ACCC) concerning the methodology adopted in
applying the increase."

"I am very pleased that the ACCC has accepted our approach which
obviously fully complies with the relevant ACCC guidelines and the Trade
Practices Act," Mr Batchelor said.

"We have worked hard to ensure that savings as a result of the removal
of indirect taxes are passed on to consumers."

Announcing the increase, Mr Batchelor condemned the GST as
environmentally irresponsible. "The Bracks Government is very concerned
about the impact of the Federal Government's GST on the community. There
is no doubt that it will have a negative impact on public transport
particularly when its introduction promotes a car culture by reducing
the costs of new cars while increasing the costs to public transport
users." 

Mr Batchelor confirmed that due to arrangements with private operators,
public transport fares can only be subject to a GST inflicted increase
once and that in most instances the actual fare increase will be less
than 2% for country tickets and 5% for metropolitan tickets due to
rounding down rules. 

"For instance an Off Peak Saver, Economy ticket originating from
Ballarat currently $19.40 will have a post-GST price of $19.70 a 1.5%
increase. A single economy ticket from Geelong currently $8.60 will rise
to $8.70 a 1.2% increase and a first-class, off-peak saver from
Traralgon will rise from $41.20 to $42.00 a 1.9% increase.

"The GST price increase precedes the annual CPI fare increase that will
take affect on 1 January, 2001. This is expected to be around 7.5%,
including cumulative CPI impacts since the last increase in January
1999, and the likely effects of the GST on CPI," Mr Batchelor said.

Mr Batchelor also referred to the public document, the Public Compliance
Commitment to the people of Victoria which has been submitted by the
Office of the Director of Public Transport to the ACCC.

"This document sets out the Government's approach in establishing the
new fares, compliance with relevant ACCC guidelines and makes a
commitment to public information and complaints handling. In the lead up
to GST and following its introduction the Government will work closely
with the public transport operators to ensure that the public is fully
informed of its impact on individual fares," Mr Batchelor said. 



-- 

C.

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