NSW Government's Response to the Final Report of the Parry Inquiry

As part of an improved incentive structure to achieve service improvements in public transport, public transport operators should be required to demonstrate their performance against a set of carefully chosen Key Performance Indicators. This requirement should be reflected in a transparent five year contract between the operators' CEO and Board and the Ministry of Transport. Failure to perform satisfactorily against the KPIs should trigger a government review at the conclusion of the contract of alternatives such as:

• the introduction of private sector contestability for operating public transport networks;
• examining investment in alternative transport strategies - such as increasing the use of efficient road networks - until public transport operators can deliver the needed services efficiently and effectively.

The Government will not support privatisation.

The Government does support the establishment of KPIs and annual review through the performance benchmarks established under the Statement of Corporate Intent (SCI) process and from advice provided by the Independent Transport Safety and Reliability Regulator.

Public transport competes for funds and passengers with other modes of transport. As such it needs to provide a high level of service.

The plan to establish five rail clearways within the CityRail network is supported subject to a rigorous cost-benefit analysis.

Agree.

Require public transport operators to pursue efficiency gains and to demonstrate their success as part of the five-year performance assessment (recommended above).

Agree.

Use fare increases to fund improvements in services of direct benefit to particular modal passenger groups, and adopt CPI plus 'x' approach to fare regulation to make the relationship between fare increases and service improvements transparent (for example, rail clearways).

Subject to meeting efficiency targets, pursuing fare increases aligned to the CPI through the Independent Pricing and Regulatory Tribunal. Any further fare increases through the IPART would have to be directly aligned to clearly identified service improvements such as 'rail clearways'.

Use well-targeted beneficiary pays funding sources to partly fund network augmentations where beneficiaries can be identified. The appropriateness of applying property-based value capture charges should be examined prior to the release of land for development. Development charges should be considered, particularly for funding feeder services from new areas to the existing network.

To be assessed by the Department of Infrastructure, Planning and Natural Resources (DIPNR).

Evaluate the use of public private partnerships (PPPs) to build and operate public transport infrastructure, and franchising opportunities on a case-by-case basis.

To be assessed by the DIPNR.

Pursue commercial development opportunities at and around public transport hubs to help finance infrastructure upgrades.

Support. The Government will restructure the StateRail property division Rail Estate to implement this recommendation.

Consider implementing a modest transport improvement rate with funds hypothecated to existing network upgrades and/or extensions. Undertake a comprehensive study to evaluate the appropriate basis for such a rate in terms of urban planning objectives and considering existing charges and levies.

To be considered by the Infrastructure Committee of Cabinet.

Only consider public debt as a funding source when other more desirable funding options have been fully explored, and only if it can be shown that it would generate additional community benefits.

Agree.

Review SRA's allocation of costs to CountryLink to assess whether it is accurate and appropriate, so that the costs and benefits of CountryLink services can be properly evaluated.

Agree.

Ensure that the level of subsidies to CountryLink services can be justified on the basis of compensating for external benefits.

Agree.

Negotiate an appropriate contribution from the ACT Government to the costs of providing CountryLink services between Sydney and Canberra.

Agree.

Explore all options for improving long distance passenger services for rural and regional NSW within the constraints of available resources. Consider the costs and benefits of alternative transport modes and include a case-by-case assessment of the service levels, including service frequency, that communities need.

Agree.

Require Ministry of Transport to publish an annual "Cost Effectiveness Report on CSO contracts" across all transport operations including reliability advice from the Independent Transport Safety and Reliability Regulator.

Include CountryLink services in the development of Integrated Regional Transport Plans recommended in the interim report of the Unsworth review.

Agree.

Apply the 'Solutions Team' approach to other areas of CountryLink's operations. Any changes that are implemented as a result of the Solutions Team's work should be reviewed after 12 months operation.

Agree.

Review CountryLink's fare structures and the appropriateness of the extent of discounts on tickets purchased in advance.

Agree.

Pursue opportunities for improving CountryLink's efficiency to deliver cost savings particularly in relation to costs associated with booking and selling tickets.

Agree.

CityRail fares should increase modestly in real terms to help fund better services and to adjust the base fare for journeys up to 50 to 60 kilometres towards a constant per kilometre price. Some increases in fares for longer distances may also be justified, but need to be carefully balanced against the potential adverse impacts of substantially reducing the existing very large discounts. IPART should set CityRail fares having regard to these recommendations.

Public transport agencies will seek fare adjustments through the IPART. The Government supports a 5 year price path to give transport agencies revenue certainty.

Pending decisions on the arrangements for bus franchises and smart card ticketing, continue to provide the following STA ticket products:

• a standard single journey cash ticket whose price increases with distance; and
• a magnetic stripe Travel Ten ticket with a constant percentage discount to the single journey cash fare.

Agree.

If STA and private bus fares are aligned use a simple fare structure with a constant per kilometre fare.

Provide payments to transport operators for actual school student travel.

Agree.

Pilot the use of 'smart card' technology in private buses in 2004 and roll-out the technology across the private bus fleet in 2005 to enable actual travel based payments.

Agree.

Introduce an annual application fee of $30 indexed at the rate of inflation with exemptions available for low income households.

Not supported. The revised Integrated Ticketing project is a superior mechanism to remove phantom riders and pay transport operators on the basis of actual usage.

Make pensioner excursion tickets available to eligible pensioners and seniors with health cards using the CityRail, STA and metropolitan private bus networks.

Agree.

Replace the existing metropolitan pensioner excursion ticket fares scales with $2.50, $4.00 and $5.00 fares.

$2.50 across the board and CPI indexed.

Increase the CountryLink pensioner excursion fare from $2.20 to $3.00

Factor into the review of fares, concessions and consideration of co-payments to be conducted by StateRail.

Index pensioner excursion tickets and increase the fares in 20 or 50 cent increments.

Agree.

Make seniors card holders only eligible for half fare concessions rather than pensioner excursion tickets (seniors who hold health cards should still be eligible for pensioner excursion tickets).

Reject. Various groups have made strong representations to the Government, which on balance have been accepted.

Limit travel on pensioner excursion tickets to outside the morning peak period.

Reject pending an assessment of impact on AM congestion of extending PET to all transport modes.

Provide for reimbursement of additional travel costs of pensioners who need to travel during the peak morning period to undertake volunteer work for registered charities.

Not necessary in light of above.

Provide private bus service users with the same concessions as STA bus service users.

Consider a comparable set of fares and concessions over time.

Review the government's concessions policy to ensure that it is fair and reflects social welfare priorities.

Agree.

Bring local service providers and users of community transport services together to develop plans for better services and promote coordination of available resources.

Agree.

Broker streamlined funding and administrative arrangements that meets local need - including funding from Home and Community Care, the Community Transport Program and funding from other agencies including NSW Health.

Agree.

Redirect underutilised assets from proposed changes to the SSTS and pensioner excursion tickets to increasing community transport services.

Agree.

Establish a network of regional community transport development workers across the state that are funded and coordinated by the Ministry of Transport.

Agree.

Review mechanisms for improving taxi services for wheelchair users

Refer to taxi industry reforms and MOT for joint review.

Review the level of rebates provided under the Taxi Transport Subsidy Scheme.

Agree.

Any implementation of road use pricing must be accompanied by rationalisation of the current taxation of motorists.

Agree.

As a separate issue, undertake a joint review with the Federal Government of taxation, expenditure and other policies that are detrimental to public transport compared with private transport.

Agree.

Following consultation with the community and stakeholders, consider implementing electronic road pricing (ERP) within the next 5-10 years as a means of effectively signalling to the community the external costs of road use - congestion, pollution, road wear and tear and accidents.

Agree.

In the intervening period, take steps to facilitate the introduction of ERP, such introducing of two-way tolling and harmonising tolls across existing and new tolled arterials.

To be assessed by the Department of Infrastructure Planning and Natural Resources (DIPNR) and RTA.

Undertake strategic, multi-modal transport planning that is integrated with urban planning. The Department of Infrastructure, Planning and Natural Resources should lead this projects, utilising the expertise available in other agencies, including the Roads and Traffic Authority, State Rail Authority and the Transport Data Centre.

Agree.

The multi-modal transport plan should be the basis for generating a suitable menu of infrastructure projects deemed capable of meeting government's announced transport objectives for the Greater Sydney Area.

Agree.

All transport infrastructure projects must be compared and evaluated using rigorous cost benefit analysis which takes full account of economic, social and environmental costs and benefits.

Agree.