Hutt Valley bus contract under discussion
Greater Wellington has received an application from NZ Bus to register some Hutt Valley bus services as commercial services. The services concerned are those currently subsidised on the nos. 81, 83 and 85 routes between Eastbourne and Wellington, all services on the no.110 route between Upper Hutt and Petone, and all services on the no.120 route between Stokes Valley and Lower Hutt. Greater Wellington does not set the fares or subsidise commercial services; they are controlled entirely by the operator.
Peter Glensor, Chair of Greater Wellington’s Transport and Access Committee, says Greater Wellington is not in a position to decline the applications for registration of these services.
“Our key priority is to ensure the continuity of bus services to the travelling public and at the same time ensure that we are getting best value for money for our ratepayers. The registrations have the potential to save the region $3.1 million in subsidies annually, and we’ll be doing all we can to ensure the savings are there in reality.
“We are talking to NZ Bus about the possibility of extending the contracts for the remaining Hutt Valley bus services for the next three years. This discussion is being undertaken within the parameters set by the NZ Transport Agency and if we can’t reach a satisfactory outcome by the end of November we will be tendering these services on the open market,” he said.
Cr Glensor said the NZ Bus application had pre-empted imminent plans by Greater Wellington to tender for Hutt Valley bus services. The Hutt Valley tender was to be the first under Greater Wellington’s new procurement strategy for bus and harbour ferry services, endorsed by the NZ Transport Agency earlier this year.
“The new strategy aims to create a truly competitive environment for the tendering of bus and harbour ferry services. While we may postpone implementing the tendering part of the strategy in the Hutt Valley, our priority remains to demonstrate genuine value for money,” Cr Glensor said.
This is not the first time Hutt Valley bus services have been tendered competitively. The process was last undertaken in 2003 with some contracts re-tendered in 2005. Valley Flyer, owned by NZ Bus, successfully won the tenders.
For more information, please contact:
Peter Glensor
Chair, Transport and Access Committee
Ph: 027 241 5152