Revenue Protection

1 Vote(s) - 4 Average

Bazza

202

19 Jul 2023, 1:24 pm #1

Now that fares are being substantially subsidised, should Nexus now take steps to protect bus revenue by utilising Metro Inspectors to check ticket compliance on buses too?

idiot

1,121

19 Jul 2023, 2:41 pm #2

Why should Nexus check private operators tickets?

Bazza

202

19 Jul 2023, 3:53 pm #3

(19 Jul 2023, 2:41 pm)idiot Why should Nexus check private operators tickets?

It would depend on the terms of reimbursement of the subsidised fare and concessionary passes. In the case of passes, for example, there is no incentive for the private operators to check that passes are being used legitimately, they get reimbursed regardless of who uses them.

The more fares are subsidised, or if bus services are actually franchised, again, the less operators are incentivised to ensure correct fares / tickets are being issued / used correctly.

Ultimately it is the tax payer losing out

Adrian

9,583

20 Jul 2023, 10:32 am #4

(19 Jul 2023, 3:53 pm)Bazza It would depend on the terms of reimbursement of the subsidised fare and concessionary passes. In the case of passes, for example, there is no incentive for the private operators to check that passes are being used legitimately, they get reimbursed regardless of who uses them.

The more fares are subsidised, or if bus services are actually franchised, again, the less operators are incentivised to ensure correct fares / tickets are being issued / used correctly.

Ultimately it is the tax payer losing out

Operators appear to be reimbursed for the TNE tickets, in the same way as currently happens with Network One. Not only that, but it appears they're also covered for any forecast losses, e.g. a downturn on single/return fares.

So I'd say it's well within their interests to ensure people are travelling with correct tickets, as the revenue hit is on themselves more than it is the public purse.

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