TASMANIAN BUS ASSOCIATION

Draft

Media Release

30 May 2005

TASMANIAN BUS OPERATORS CALL FOR IMPROVED CONTRACT RATES

The Tasmanian Bus Association (TBA) has called on the State Government to immediately improve contract rates for regional and rural bus operators.

Speaking before its Annual General Meeting and Conference in Hobart today (30 May), TBA General Manager Geoff Lewis said without improvements to the contract rate, operators could not afford to invest in modern, safer vehicles.

“Tasmania has the oldest school bus fleet in Australia, with an average age of 25 years,” he said.

“Obviously newer buses are safer buses, but there is no capacity or incentive for Tasmanian bus operators to upgrade their fleets.

“In fact, operators have been forced to replace their higher capital cost, modern vehicles with older buses just to stay in business. 

“And safety and accreditation standards are only being maintained through the goodwill and efforts of operators.”

Mr Lewis said while the TBA had hoped for some good news from the recent State Budget, the issue of contract rates had been ignored.

“Government bus contracts just cover basic operating costs and are on average $9,000 below the level deemed appropriate by an independent review in 1988,” he said.

“These rates do not provide anything to support the capital costs associated with operating modern, safer buses.”

Mr Lewis said a review into State Government bus contracts was to be completed by June this year, but this had been extended by a further three years as part of the government’s review of Tasmania’s core passenger services.

“The bus industry cannot wait for another three years before something is done to bring Tasmania into line with other states, where payments are fairer and bus fleets significantly younger,” he said.

“I am confident that the Tasmanian community believes it deserves standards that are equal to those applying interstate. 

“All the Tasmanian Bus Association is asking for from the State Government is that it simply pays a fair payment regime that will allow the industry to invest in modern vehicles for the ultimate benefit of the community and our children.”

Mr Lewis said the TBA would participate in the workshop being conducted by Mr Green in June, but was concerned that this was just a delaying tactic and an attempt to avoid addressing the problem.

For further information contact:

Geoff Lewis Tel: 0409 287 678