NSW: More debt, less passengers on Sydney buses

00-00-0000
NSW: More debt, less passengers on Sydney buses

By Krystyna Pollard

SYDNEY, Dec 12 AAP - Only about one-third of Sydney's bus routes and four per centof Newcastle's are making a profit as commuter numbers continue to fall, a NSW Auditor-General'sreport has found.

The report, covering audits of about 185 general state agencies, statutory bodies andowned corporations, also said the State Transit Authority (STA's) liquidity continuedto deteriorate and it relied more heavily on borrowings.

Only 36 per cent of Sydney bus routes were profitable in 2001/02, while only four percent of Newcastle bus routes made a profit.

At the same time, bus and ferry patronage dropped by 4.2 per cent and 7.8 per cent respectively.

"Virtually all services in Newcastle and the majority of services in Sydney are unprofitableand have to be supported by the taxpayer," NSW Auditor-General Bob Sendt told reportersduring the report's release today.

"It's a matter for the taxpayers to decide if they are happy to do that, to continueto support essential services in that manner or whether there should be greater relianceon user charges."

Liabilities of the STA also increased, mainly because of $37.4 million in borrowingswhich has to be repaid within 12 months, the report said.

The authority also received a $5.1 million interest-free loan from treasury.

Opposition transport spokesman Peter Debnam said with passenger revenue falling, thegovernment was pumping millions of dollars of short term, interest-free loans into theSTA to keep it afloat until after the March 2003 state election.

"The revenue is down because passengers are voting with their feet and deserting thebuses and ferries," he said.

"The reason patronage has fallen is because the standard of service has fallen."

An assessment by the transport department also revealed it had made overpayments tobus operators in the school student transport scheme, potentially to the tune of $1.6million for the 2001 school year.

"The work they did disclosed some overpayments on the sample," Mr Sendt said.

"If you extrapolate the numbers ... you'd find potential overpayments in the millionsof dollars."

The report also identified:

* Allegations of fraudulent activity, in some cases involving up to $150,000, in thetaxi transport subsidy scheme.

* An alleged fraud at the Moore Park Golf Club, committed over several years, expectedto be "significant" which is before the courts.

* A rise in the average number of inmates in NSW jails.

* Savings from reforms to the WorkCover scheme were not sufficient to to offset poorinvestment returns.

The report also made recommendations to improve processes in MPs' entitlements, particularlyin relation to their principle place of residence.

"We believe if parliament came up with more definitive guidelines it would help membersdecide correctly without risking attack ... which is their principle place of residencebecause that does have impacts on the entitlements they're allowed to claim," Mr Sendtsaid.

AAP kp/arb/cjh/br

KEYWORD: AUDIT NIGHTLEAD