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Victorian government defers all bus orders, extends bus lifespans

BREAKING: In an ABC exclusive, an email on Christmas Eve to Victorian operators confirms all current bus orders have been “deferred” and lifespans have been extended

The Victorian government has placed a pause on all bus orders in the state, letting the state’s operators know late last year that orders have been “deferred” by up to five years.

An email on Christmas Eve to the Victorian bus and coach industry has confirmed a change in policy that sees the Victorian government defer current bus replacement orders and extend the lifespan of current buses on the state’s roads.

In an ABC exclusive, the Victorian Department of Transport and Planning (DTP) sent an email on the afternoon of December 24 last year outlining the change in plans.

The original state government plan was for all new public transport bus orders from July 1, 2025 to be zero-emissions. In November, the Victorian government’s Zero Emission Bus Transition Plan stated diesel buses may continue to be ordered up to June 30, 2025 to “give operators time to prepare for the transition and maintain service continuity”.

For metropolitan bus service contracts, small regional bus services and regional school buses, the government’s plan outlined that the “life of existing diesel buses will be extended by up to five years” to allow operators to “prepare for and make the ZEB transition”.

This was followed by the Christmas Eve email to Victorian operators, which ABC has seen, that also stated that orders made from November last year onwards were to be deferred.

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“Diesel fleet which is scheduled for replacement in only the 2024-25 financial year can be ordered before June 30, 2025 and confirmation of the orders should be provided to the respective contract managers at the earliest,” the email says.

“This is consistent with the government’s commitment that from July 1, 2025, all new public transport buses purchased will be zero emission.

“The transition to ZEB fleet for the small regional bus school contracts and school bus operators will be managed by extending the life of the existing contracted diesel buses by up to five years. That is, diesel bus replacements scheduled for FY 2025-26 and onwards have been deferred.”

Further, the email also says DTP will work with the Bus Association of Victoria (BAV) over the next 12 months to develop “key principles for diesel fleet life extensions and agree on standard contractual amendments for affected operators” to “ensure the life extension of the existing diesel buses for these contracts is implemented in accordance with the government’s ZEB plan and meets the state’s requirements”.

In response, the Victorian government says it has “listened to bus operators and manufacturers” during its Zero Emission Bus Transition Plan and will continue to work with them and prioritise safety.

“Road safety continues to be our key priority, which is why all buses are required to undergo an independent safety inspection every year so that they are fit to take passengers,” a Victorian government spokesperson told ABC. 

When contacted for comment, a spokesperson for the Bus Industry Confederation (BIC) says it’s “deeply concerned by the policy changes made on Christmas Eve by the Victorian government”.

“The extension of bus life and the deferral of purchases up to five years has implications nationally. It places the viability of the bus industry, especially in Victoria, at serious risk, with up to 1100 jobs at stake in Victoria, and a further 250 nationally,” the spokesperson told ABC.

“It isn’t just about job losses though, it’s about supplier businesses closing altogether, relocating interstate or overseas. Once they go, they are gone for good. It’s up to $1.4 billion over the next five years gone from the economy.”

When it comes to emissions, the spokesperson says even a new Euro 6 diesel bus is “significantly cleaner” than a 20-year-old bus, raising issues about safety.

“Transitioning to zero emissions isn’t just about emission reduction, it’s also about the safety benefits that newer buses provide,” the spokesperson says.

“We are very concerned that the public simply won’t get the benefit of critical safety improvements. These include bus rollover protection (ESC) and the seatbelt changes announced just last week by the federal government.”

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