Public transport is funded through a combination of rates, bus fares, advertising, and subsidies from the Central Government. The increase in rates is necessary to cover rising operational costs and maintain and improve services, ensuring that our public transport system remains reliable and accessible.
Costs have increased due to higher bus driver wages and operational expenses like fuel and maintenance. These increased costs are being passed on by operators and affect the funding mix. Additionally, we are planning our transitioning to a zero-emission public transport fleet in line with government mandates, which will reduce our exposure to fuel price spikes in the future.
To ensure that funding keeps pace with inflation and rising costs, rate increases are indexed, meaning they adjust slightly each year based on cost changes. This approach allows us to maintain and improve services without sudden, larger increases and to manage costs effectively.