The Cronulla-Bundeena ferry service operator is seeking to increase fares by an average of five per cent a year for the next four years.
Cronulla and National Park Ferry Service has asked the Independent Pricing and Regulatory Tribunal (IPART) to approve incremental increases each year, from $7.80 in 2022 to $9 in 2025.
The current single adult fare is $7.40. Children pay $3.70, as do pensioners, seniors, unemployed and students, and there is also a family ticket for two adults and up to four children costing $24.
IPART is calling for public submissions on fares for seven ferry services, including Cronulla-Bundeena, in Sydney and on the Central Coast and NSW North Coast.
In March this year, the tribunal asked each ferry operator to propose fares for each year of the four-year review period.
Operators were also asked to forecast their operating and capital costs, as well as patronage.
Proposed fare increases by operators range from 2 per cent to 10 per cent per annum.
The tribunal said it would take into consideration factors such as:
- External benefits generated by the private ferry services (such as avoided congestion, avoided pollution and active transport benefits).
- The role of the private ferry in the community it services. That is, to what extent is the private ferry an essential public transport service for a community which has few other transport options? And to what extent does it service leisure travellers who could be expected to cover the full cost of their journeys without subsidy?
- How passengers respond to changes in fares. For example, raising fares may reduce patronage and therefore not produce the required revenue.
IPART said several private ferry operators (including Cronulla and National Park Ferry Service) offer discounted multi-trip tickets.
"We could regulate all fares, including multi-trip tickets, using a weighted-average price cap (WAPC)," IPART said.
"However, when we have consulted on this in previous reviews, stakeholders have not supported this approach. It would also increase complexity for operators in setting fares and for us in monitoring compliance with the cap.
"Therefore, as in previous reviews, we propose to determine the maximum single adult fare, and invited ferry operators to propose fares for a single adult ticket only."
Murray Trembath
St George and Sutherland Shire Leader reporter covering politics, urban affairs, council, development and general community news. Email: mtrembath@theleader.com.au
St George and Sutherland Shire Leader reporter covering politics, urban affairs, council, development and general community news. Email: mtrembath@theleader.com.au
