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Public transport costs set to skyrocket

The carbon tax will add $53m to public transport operating costs in Victoria, the State Goverment says.

August 15, 2012

The carbon tax could add almost $53 million to Victoria’s public transport operating costs during the next three years, according to the Victorian Government.

Victorian Transport Minister Terry Mulder says the operation of Melbourne and Victoria’s buses, trains and trams is now expected to cost $15.2 million in 2012-13, rising to $21.7 million by 2014-15.

“Metro is expected to incur $10.8 million in additional operating costs in 2012-13, rising to almost $12 million by 2014-15,” Mulder says.

According to Mulder, by 2014-15 the transport department forecasts that the annual additional cost for Victoria’s school buses will be $750,000 while metropolitan and country route buses will face annual extra costs of $3.3 million and $510,000 respectively.

Mulder says the state’s transport department recently updated last year’s figures, which showed an operating-cost increase of $48 million from 2012-13 to 2014-15.

Mulder says tax payers will pick up the bill for the extra costs.

Meanwhile, in New South Wales it has been reported that extra costs from the carbon tax will be paid for by commuters, with public transport fares
expected to
rise by more than 3 percent per year on average as a result of the carbon tax.

The Australian Competition and Consumer Commission (ACCC) Infocentre received more than 1260 carbon price complaints and enquiries between July 1 and July 24, 2012.

ACCC chairman Rod Sims says compared to the 630 carbon price related complaints and enquiries received within the first ten days of the scheme, this represents a decline from an average of 63 complaints per day to about 45 per day.

“The majority of contacts to the ACCC have been about general price increases not specific complaints about carbon price misrepresentation,” Sims says.

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