Cabinet to Consider 16 Per Cent Transport Fare Rise on 1 June, Vaz Says

Transport Minister Daryl Vaz said discussions on Monday with transport operator groups and the Transport Authority stayed orderly. His ministry is now liaising with the Ministry of Finance to prepare a paper for Cabinet on 1 June.

Vaz told the sector the Government acknowledges a 16 per cent fare adjustment is still owed. He warned that unchecked inflation could wipe out the benefit of any rise. "We accept that there is a 16 per cent outstanding increase, but we are also mindful of the impact on inflation, which would pretty much negate the 16 per cent if it gets out of control," he said.

The minister again stressed that weekly fuel-price increases are capped at $4.50, a shield he said could otherwise climb to $12.50. Because public transport relies heavily on fuel, that relief lands hardest where operators need it most. "It could go as high as $12.50 per week. And that in itself is a big help to them, as it is they who utilise the most fuel based on the profession and the sector that they are in. They are accepting, hoping for the 16 per cent but we will do as best as we can and inform them after the cabinet meeting on June 1," Vaz said.

Operators are pressing for the full increase and will be updated once Cabinet has met.