Free bus fares in Bay of Plenty could be cut back after the government pulled its funding.

Buses have been free for anyone aged 18 or under and half price for 19-24 year olds in Tauranga, Whakatāne, and Rotorua since July last year.

But that is likely to be scaled back after the Government announced in December it would stop subsidising the fares from April 30.

Funding would continue for half price fares for Community Services Card holders and Total Mobility users.

The move has forced the Bay of Plenty Regional Council, which delivers public transport, to look at its fare structure.

If the council continued with free youth fares, it would do so at its own cost and cause rates to rise.

The council’s Public Transport Committee discussed its options at a meeting on Wednesday.

The committee consists of six regional councillors and representatives from Tauranga City Council, Rotorua Lakes Council, Western Bay of Plenty District Council and Whakatāne District Council.

Public transport director Michael Seabourne said the council hadn’t budgeted for the NZ Transport Agency Waka Kotahi subsidy ending.

The committee was asked to choose between three options, including keeping the status quo.

The chosen option would then be presented to the regional council for approval because the decision had a financial impact the committee didn’t have the authority to sign off on it.

Buses are free for anyone aged 18 and under in in Tauranga, Whakatāne, and Rotorua. File photo/SunLive.

Option 1 retained free fares for anyone aged 18 and under, but 18 -24 year olds would pay full price.

Option 2 kept free fares for children five years and under, free fares during peak times for six to 18 year olds and made fares full price for 18-24 year olds.

Option two was the staff’s recommended option and “the more cautious approach”, said Seabourne.

The balance of the discounted fares is funded through targeted rates from Tauranga, Whakatāne, Rotorua and Western Bay.

The general rates would rise by $4.33 if status quo was retained, $4.02 under option 1 and $2.55 under option 2.

Tauranga’s targeted rate would rise by $28.52 for status quo, $26.73 for option 1 and $18.44 for option 2.

Rotorua’s targeted rate would rise by $8.70 for status quo, $7.90 for option 1 and $4.69 for option 2.

Whakatāne’s rate would rise by $1.42 under the status quo, $1.27 for option 1 and reduce by 3 cents under option 2.

For the Western Bay, the rate would rise by 35 cents with the status quo, option 1 would be 24c and decrease by 12c under option 2.  

Bay of Plenty Regional councillor Jane Nees wanted free fares to be retained for those aged 18 and under. Photo: John Borren/SunLive.

Regional councillor Jane Nees said she preferred option one.

“I don't agree with us making this decision at this time when we have not done any consultation with the public on what this might mean to them.”

Committee chair Andrew von Dadelszen said the change had been brought about by the government in both providing the funding then taking it away, with the council not consulted.

He said the council didn’t have time for public consultation before the funding was removed.

“We will have to have a rigorous debate at our full council [meeting] because it has big implications for funding viability for our public transport budget.”

Western Bay mayor James said he was leaning towards option 1.

“Option 1 has merits, keeps things simple, [and] encourages children to use public transport.”

Councillor Ken Shirley said the council’s decision to have free fares was against staff recommendations at the time.

“On reflection it was clearly a bad and wrong decision, so I strongly endorse the recommended option 2."

The committee chose option 2 to recommend to full council after a tied vote, with  von Dadelszen using his casting vote to adopt option 2.

The recommendation will be presented to the regional council for a decision.

LDR is local body journalism co-funded by RNZ and NZ On Air.