Media release

Auckland Councillor Cameron Brewer

15 May 2012

Tram numbers and revenue down significantly

Auckland Councillor Cameron Brewer has released some alarming figures on the Wynyard Quarter trams he sought from Waterfront Auckland.

The $8m heritage tram project has seen two heritage trams run a 1.5km loop around Wynyard Quarter since 6 August. Waterfront Auckland budgeted on 10,871 passengers for the month ending 31 March but actual numbers show just 1,933 people took a tram ride in March – less than 20% of what was forecast.

At the same time, revenue from ticket sales was budgeted for the first eight months at $613,059 but the actual total ticket revenue up to 31 March was just $226,887.

Exacerbating Auckland Tramways Ltd’s patronage and revenue problems is the forced reduction in operational hours and ticket prices. The original seven days a week operating hours of 9.00am-7.30pm, were then reduced to low season operating hours of 10.00am-4.30pm at week days and 10.00am-5.00pm on weekends. Original ticket prices were $10 per adult and children up to 15 years free. Current ticket prices: $5.00 per Adult / $1.00 for Children ages 5-15 / $10.00 for a Family Pass (2 adults and up to 3 children).

“Waterfront Auckland has recently made it clear to Auckland Council that a further $150,000 subsidy is now required to return the tram company to a break even position and ensure continued operations. This is because the tram company has already recorded an operating loss of $139,136,” says Mr Brewer.

“Let’s not forget that this is a project that Waterfront Auckland promised ratepayers would pay for itself. However as many of us predicted, their forecasting of just how many people would pay good money to circumnavigate a car-park was always pie in the sky. With this business planning experience in mind, you have to take their latest request for $16.8m of ratepayers’ money to help build a super yacht haul-out facility with a grain of salt.

“What’s more with the current two trams bleeding cash, it’s very concerning that a further $8.2m has made its way into the council’s draft 10-year budget to extend the trams to Britomart. Waterfront Auckland assures us that such an extension of the project won’t lead to much of an increase in the existing operational costs, as the trams are already fully staffed and running full time. However ratepayers should be very worried.

“It seems crazy that while the existing trams are losing money hand over fist and are so poorly patronised that ratepayers are now being asked to spend millions more extending the project, but that is exactly what is being proposed,” says Cameron Brewer.

Budgeted and actual passenger numbers 6 August 2011 to 31 March 2012:

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

Budget

6,573

10,009

10,009

10,009

10,687

14,357

12,917

10,871

AUG

SEP

OCT

NOV

DEC

JAN

FEB

MAR

Actual Pax

14,851

11,472

15,322

2,391

4,357

4,122

2,714

1,933

Ends

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