Bus service to recoup more costs from fares

Invercargill City Council is proposing an increase in bus fares to cover a greater proportion of the cost of delivering the service for the community.

The proposal would see bus fares increase by between 10 and 14 percent.

Invercargill City Council Group Manager Finance and Assurance Patricia Christie said the increase would reduce the amount of funding the bus service required from rates and subsidies, in line with central government direction and Council's Revenue and Financing Policy.

“We’re prioritising a user-pays approach for our buses, in line with government policy, which will collect more revenue from the people who use the service rather than from general rates. The change will help cover what it actually costs Council to run public transport for the community,” she said.

Under the proposed fare structure, adult fares paid by card would increase from $3.50 to $4.00, while youth, senior and Community Services Card fares would increase from $1.75 to $2.00. Cash payments would incur an additional 10 percent fee.

Invercargill City Councillor and Community and Regulatory Committee Chair Darren Ludlow said children under 13 would continue to ride for free, as well as Super Gold Card holders during off-peak hours.

“We know any increase, no matter how small it looks on paper, has a real impact on people’s day-to-day lives,” he said.

“We have a responsibility to be honest about what it costs to run services like this. If we want buses to be there for people in the long term, we need to make sure the way we fund them is fair and financially sustainable.”

The proposed fare increase comes as Council consults on changes to its Fees and Charges for 2026/2027, with a majority proposed to increase by between 5 and 15 percent.

Ludlow said people could make submissions on the changes until 5pm on Friday 24 April.

“We know there’s no perfect answer here, and reasonable people will see the changes differently,” he said.

“It’s important we hear directly from our community, especially those who use the service and those who are feeling the pressure of rising costs.

“We don’t take decisions like this lightly, because we know behind every fare is a person trying to get to work, school or home.”

Submissions can be made online, or in-person at Splash Palace, Te Hīnaki – Civic Building, the Bluff Service Centre and the Invercargill Public Library.

Further information and online submission forms are available at letstalk.icc.govt.nz

Council is scheduled to adopt its 2026/2027 Fees and Charges schedule in June.