Public Transport Levy
The Institute for Sensible Transport proposes a public transport levy, similar to the Medicare levy as an alternative to the current ticket pricing system. It works by collecting a small percentage of Melbourne's resident's income. This goes into a levy to produce a slightly larger amount of money to that raised by the current ticketing system.
Why would this be better?
Fairer, more equitable.
Passengers pay more depending on the number of zones they wish to travel. This discriminates against those living in the outer zone, as on average, they pay more but earn less. The Victorian Government's decision to remove the outer zone of Melbourne's public transport ticketing catchment (Zone 3) is a step towards an equitable pricing structure. The ticketless system removes the zones and increases transport equity.
Encourage use.
Under a ticketless system, public transport use would be encouraged in two ways. Firstly, public transport trips from Melbourne's outer suburbs to the inner city are often perceived as more expensive than the same trip traveling by car. A public transport levy system would do away with this price imbalance. Secondly, use would be encouraged by the knowledge that the ticket has in effect been paid for, so why not use it? Just as a buffet meal often results in eating a lot, a public transport levy would result in generous usage. Unlike over eating, there is little downside at the individual or community level to active 'consumption' of public transport.
Easier, simpler system.
With the ticket system removed, the public transport system would become more accessible to Melbournians unfamiliar with it. Moreover, it would be very attractive to tourists, as they would not have to familiarise themselves with a foreign ticketing system. It will also save over $100m annually in ticket related costs.
Better for everyone, not just those that use it.
It is often argued that those truly reliant upon their motor vehicles such as trades people would be disadvantaged by a public transport levy, as they would be paying for something they don't use. Even if they do not use the public transport system for their work, it will still provide considerable benefit to them. This is due to the fact that a great many other people will use it, reducing congestion. Congestion costs the economy (especially heavy road users) billions of dollars each year in lost productivity. To give a practical example, if a plumber usually performed 6 jobs at different sites per day, he/she could expect to complete around 8-10 jobs given the reduction in traffic congestion. This increase in productive work and decrease in non-productive time in traffic would far outweigh the costs of the levy on personal income.
A detailed financial analysis of this initiative is required. Organisations or individuals wishing to support the development of such an investigation are encouraged to Contact the Institute.
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