Hamish Nuttall

The Sunday Star Times reports that Infratil’s network related investments are suffering. In particular increased regulation could affect the value of Wellington International Airport.

However, the same problem is not likely to affect Infratil’s bus investments. Infratil bought Stagecoach’s New Zealand operations for $250 million. At the time, Stagecoach’s Brian Souter said one of the reasons for pulling out of New Zealand was the increasing threat of regulation.

Regional Councils are lobbying the Government to give them greater powers to control bus services. Councils want this so that they can introduce such things as integrated ticketing, which they have largely failed to do in the 15 years since bus services were deregulated.

The likely result of this regulation is that councils will negotiate with bus operators for the provision of services under an “open book” policy. With no incentive to improve efficiency, subsidies will go up. And with no competition, Infratil will do well. However the focus on passengers’ needs - to the extent there is one - may well be lost.

Still all of that seems to be a price that the councils are prepared to pay.

We are conducting research to find out New Zealanders’ travel needs. Specifically we are interested in getting around the country - from city to city and so on.

If you want to participate. Just go here…

Update: Our City to City Travel survey has closed. Thanks to those who completed it. The result of the research is our brand shiny new city to city bus service: nakedbus.com. nakedbus.com is a new, very low cost city to city bus service, initially serving towns and cities in the North Island of New Zealand.

In New Zealand, Intercity Coaches is complaining that council subsidies are competing with its own services - which receive no subsidy from councils. The complaint states that councils are increasingly putting city to city services up to tender - having ignored city to city travel for years. Maybe the fact that InterCity charges up to $26 for the trip between Tauranga and Rotorua (an 80 minute journey), has something to do with Environment Bay of Plenty subsidising another service. Aucklanders might pay $7 for that kind of trip, and less if they bought a monthly ticket!

No wonder so many Kiwis travel by car!