Otago Regional Council (ORC) is proposing that Upper Clutha residents subsidise public transport for the Whakatipu region.

Public transport (PT) has previously been paid for by targeting ratepayers in the areas that benefit from it, but ORC’s proposals would include Upper Clutha ratepayers in the targeted rate, despite the proposal not including any PT in Wānaka.

“It is incongruent that Wānaka and the Upper Clutha are being asked to contribute to PT through ORC rates when we have no PT services provided for us,” Queenstown Lakes District deputy mayor Quentin Smith told the Wānaka App.

“This is nothing more than an attempt to spread the cost base of PT over a greater number of ratepayers even if the service isn’t available.”

ORC Dunstan councillor Alexa Forbers told the Wānaka App she expects “strong pushback from Wānaka” over the proposal, and her personal view is that Upper Clutha residents should not be contributing in the same quantum as those in Queenstown. 

ORC Dunstan councillor Alexa Forbes PHOTO: Supplied

However, she pointed out that buses are not fully funded by the fares people pay (they are mostly funded by a 51 percent government contribution and local and regional rates), which means those who use buses pay the most because they pay tax, rates and the fare.

“We agreed as a council that the benefits of public transport extend beyond the network boundaries that are served by the service,” she said. 

“For example, keeping Queenstown moving has benefits for the entire district and we know through modelling that Queenstown will come to a standstill without effective PT. PT plays a huge role in reducing emissions which benefits everyone. Those in the wider district regularly visit Queenstown and we need them to be using PT. “

The question raised, she said, is: “Why would Wānaka, Glenorchy, Kingston, Albert Town, Hāwea and Luggate want to pay an equal amount towards a bus service that isn’t always useful or available to them?”

“This is particularly galling when all of these areas would love their own bus service.”

Recent public transport trials identified demand for a service between Wānaka and Hāwea. PHOTO: Wānaka App

Quentin (who is also a member of the Public and Active Travel Advisory Group, a joint forum of ORC and QLDC) said the recent Community Shuttle Trial, organised by Community Networks, demonstrated demand for a PT service between Wānaka and Hāwea.

“PT would be fantastic for the Upper Clutha, and even more so in time, but it does come at a significant cost, not one that we should be burdened with without access to the services,” he said, adding that ORC should only bring Wānaka into the target rate when services are proposed in the Upper Clutha.

“We are unfortunately many years away from a widespread and regular PT service in the Upper Clutha,” he said. “I expect the community will push back hard against the ORC targeted rate proposal.”

Alexa said the next step was for people to provide feedback on the consultation document.

“If people agree with the principle of benefit extending beyond network boundaries, they may suggest that a lesser amount be contributed by those areas, or they may oppose the suggestion entirely, or they might have a better idea. We want to hear these through the many feedback channels available,” she said.

She is also keen to hear about what people think about financing PT with a uniform charge. This would mean everyone in this district would pay the same targeted and general rate of $136 in the first year, for example a household in Makarora and a large hotel in Queenstown would pay the same.  

“There are other ways of doing this… such as charging based on capital value or land value meaning the higher-value properties would pay more reflecting the value the PT service offers to tourists.

“If nothing else, I hope this issue raises engagement with the plan and encourages people to consider things like the large-scale environmental fund.”

ORC transport manager Lorraine Cheyne said consultation will take place in April/May and other feedback will begin in the 2024/25 financial year. 

“Our LTP plans were made and approved by council before the current Coalition Government set out its transport investment policies in the new Government Policy Statement (GPS), March 2024. The new GPS has a lower priority for PT investment which carries some risk for new PT trials anywhere in the country.”

Find more information in the ORC Long Term Plan.