Common Urban Myths About Transport

Myth: Bringing back tram conductors and station staff would send fares through the roof

Fact: The net cost of restoring full staffing to the system is around $20 million a year, after accounting for reduced fare evasion and a reduction in the number of ticket inspectors required. If funded through a fare rise, it would add less to fares than the GST did.

Essential to a well-patronised and efficient public transport system is the presence throughout the system of staff who can assist passengers, create a safe travelling environment, and ensure fare compliance in a non-threatening manner. As recently as the 1990s Melbourne's public transport system had such a presence, in the form of friendly conductors on every tram and staff at every railway station. Since these staff were sacked by the Kennett Government, public transport operators have had to compensate by hiring hundreds of ticket inspectors (570 currently), who perform only one of the functions of real staff and in a manner that creates an atmosphere of conflict rather than service.

I travel on public transport at least twice a day every working day, and have personally witnessed the most disgusting, condescending, over-bearing and heavy-handed behaviour from the agents of Yarra Trams, who think that shouting at a non-English-speaking tourist who is evidently very embarrassed and confused about what ticket to buy is appropriate behaviour.
---Justin Lodge, Mr Premier, the people have spoken, The Age, 12 March 2006

A writer to The Age compares this to trying to run a newsagency on an 'honour system', where people take what they want and put money in a box at the counter. Anyone would be a fool to think they could run a business this way, let alone a community service. And taking a confrontational approach to enforcing payment, rather than just having counter staff to take people's money, would just make things worse:

Hiring a group of thugs to randomly patrol my shops, harassing and assaulting those they suspect of not intending to pay will only make for an unpleasant experience for the shoppers and most likely be treated with the cynicism it deserves.
---Brian Pearce, letter to The Age, 16 September 2005

Despite our sorely-missed 'connies' being featured at the 2006 Commonwealth Games Opening Ceremony, and a Leader Newspapers survey in September 2007 finding over 90% support for returning staff to stations, our public transport bureaucracy has resisted all calls to restore tram conductors and station staff. They claim it would be far too expensive - notwithstanding the fact that fares have nearly doubled in the 10 years since staff were withdrawn. In response to media questioning in March 2002, Transport Minister Peter Batchelor said restoring full staffing would take the price of a daily zone one ticket from $5.10 to $7 and we're not prepared to do that. (In the last year of conductors, a daily zone one ticket cost just over $4; the same ticket now costs $6.50 and there still aren't any conductors.)

The true cost of restoring full staffing is nowhere near what the Minister suggested, as a quick calculation shows. Approximately 1,400 passenger-service staff would be required to staff our 500 trams and 210 stations. Of these 200 are already in the budget (100 conductors and 100 station staff, currently used as ticket inspectors and security guards). This leaves 1,200 to be funded from additional revenue. Allowing $70,000 per employee for salary and on-costs gives a gross cost of $84 million per year to restaff the system.

For comparison, the revised cost to the public of the 'myki' smartcard system is $113 million a year - plus an extra $43 million a year to keep the Metcard system alive while all the bugs in Myki are fixed.

But there are a number of factors that would cause the net cost to be much less than $84 million:

Fare evasion is said to cost the operators $50 million a year. Realistically we can expect that these staff would cut fare evasion by 80% by making it difficult to evade fares, easy to buy a ticket, and defusing the ongoing informal campaign of civil disobedience. That's $40 million a year saved.
With conductors on trams and staff at stations, the 370 other roving ticket inspectors would become largely redundant. Reemploying three-quarters of these as tram conductors means $20 million less need be spent on inspectors each year.
Increased patronage, through improvements in actual and perceived safety, cleanliness, slightly faster trams, fewer unpleasant incidents and general commercial goodwill, will boost revenue by an amount that is difficult to quantify.
Costs to the operators and law enforcement authorities would be reduced through fewer fare evasion offences, fewer court appearances, reduced vandalism, and lower maintenance costs for ticket machines.

We expect, therefore, that the net cost of restaffing the system would be less than $25 million a year. This is a conservative figure and is likely to overestimate the true cost.

The return of conductors and station staff is completely affordable. If it were to be funded through a fare increase, the increase would be less than the 10% GST that now applies to public transport tickets. But it does not need to be funded through increased fares: cost savings and cuts are never passed on in the form of reduced fares, after all. We don't increase the Medicare levy every time we fund a new initiative in public health, and this should be the same.

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© 2007 Public Transport Users Association Inc. (PTUA), Victoria, Australia. ABN 83 801 487 611.
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Authorised by Tony Morton, 247 Flinders Lane, Melbourne, for the PTUA

Last modified: 26 May 2008