Bus companies want out as Twyford pushes for more public transport

What a week: Labour announce that they are going to pour more money into forcing us to use buses, trains, bikes and walking, and by the end of the week Auckland’s bus companies are announcing they want out: Quote

Auckland’s public bus network could be thrown in to turmoil with several operators looking to pull the pin.

Newshub understands four out of the six private bus companies servicing Auckland Transport routes are looking to sell their operations.

Infratil, which owns New Zealand Bus, has already publicly announced a strategic review which could include outright sale.

The company made the announcement last year after losing about 60 percent of its Wellington routes during contract tendering.

Sources within the transport industry have confirmed three others are struggling to make ends meet, and are looking at following suit. End of quote.

Despite massive public subsidies, these companies simply aren’t able to make any money. Auckland Transport have forced route changes on them and now routes have become unprofitable.

As usual an academic has a wonky, socialist view on the matter:

Massey University School of Management lecturer Andrew Cardow says the private contracting model is failing.

If the subsidies are too low to make money, perhaps the private company is better off out of it,” he says.

“If we want a sophisticated local transport service, maybe the council becomes the owner?

Andrew Cardow says the model was initially brought in as bus services were perceived to be inefficient.

“This illustrates that a private company can’t do it better if they’re prepared to throw in the towel.”  End of quote.

What an idiot. A private company needs to make a profit. A council or the state can just increase taxes or rates to provide heavily subsidised trips. That doesn’t mean a council or the state can run it better. It means they don’t have the same motivation as a private company.

I can’t wait for Phil Twyford to decide to nationalise bus companies and call it KiwiBus. Don’t laugh… I bet he is thinking about it.

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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

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