Train fares likely to rise again later in year

Press, 9 January 1986, Page 1

Train fares likely to rise again later in year

PA Wellington Long-distance passenger train fares, which will rise 20 per cent from Sunday, could go up again later this year.

Also, Railways long-dis-tance bus fares, which increased between 13 and 20 per cent three months ago, could rise, too, before the end of the year. This was indicated yesterday by the Railways Corporation’s operation manager for passenger business, Mr Russell Dean. The latest rail fare increases were evaluated on the basis of 15 per cent wage rises to Railways employees last November. However, additional allowances still being negotiated had not been taken into account, he said.

The increased bus fares were to offset substantial cost rises in spare parts, fuel, administration and

wages. Because these costs were larger than the corporation had budgeted for, a flow-on effect was still possible.

Mr Dean said the corporation was this year expecting increases in electricity, all overheads and oil.

“I do not think we have

yet really addressed further fare increases this year. “But no doubt our board of directors will be looking very closely at our accounts and if these are not showing a healthy situation, which is very hard to do these days, we may receive directions again to look at further increases,” he said.

Mr Dean was adamant that the latest rise in passenger train fares was caused largely by the 15 to 30 per cent pay increases awarded to Railways employees two months ago.

The president of the National Union of Railwaymen, Mr Garry Keating, yesterday criticised the statement, saying it was wrong.

No Railways wage worker had yet received increases of more than 15.5 per cent, he said. Because several other claims were still under negotiation, the corporation could not possibly know what the total cost would be. Those who had received 30 per cent rises were salaried staff like Mr Dean, whose pay had been linked to last year’s Higher Salaries Commission review, said Mr Keating. He said the corporation had also overlooked the fact, that apart from the November 15.5 per cent increase and one earlier 7 per cent pay rise, Railways wage workers had not received a pay increase since November, 1981.

Mr Dean, however, justified his earlier statement. He said while other costs such as the falling value of the dollar had to be taken into account when determining fare increases, the latest wage rise would probably be the main part of the costs the corporation was trying to recover. The costs of running Railways services were human rather than material costs, and took in head office staff, booking office, portering, on-train ' servicing and catering staff, said Mr Keating.