Newcastle bus privatisation failing commuters and drivers: new report

Newcastle’s privatised bus network is delivering worse services for commuters while costing taxpayers significantly more, a new report has found.

The report reveals Newcastle Transport ranked 8th out of 9 operators in performance across outer metropolitan NSW, while the value of the contract has ballooned from around $450 million to more than $600 million.

The new McKell Institute report, Private Gain, Public Pain, commissioned by the Rail, Tram and Bus Union (RTBU) NSW, finds the privatisation experiment in Newcastle has failed and calls for the network to be brought back into public hands when the current contract expires in 2027.

RTBU NSW Tram and Bus Division President Peter Grech said the findings confirm what commuters and drivers in Newcastle have been saying for years.

“Privatisation was sold as a way to improve services. Instead, commuters are getting cancellations, delays and chaos,” Mr Grech said.

“Taxpayers are paying more while private operators chase profit.”

Mr Grech said the region – which is among the fastest growing in the nation – needs a long term vision for an integrated public transport network.

“The Hunter is growing rapidly and public transport needs to grow with it. That requires long term strategic planning, not short term contracts designed around private profit.

“A growing region like the Hunter needs a coordinated public transport system that works together. Buses, trains and light rail should be planned as one network with the public interest at its centre.”

The report also highlights serious safety concerns among bus drivers, with:

• 67 per cent saying unrealistic timetables push them to drive unsafely
• 74 per cent saying staff shortages are putting pressure on drivers and passengers

Mr Grech said the pressure on drivers was putting the entire system at risk.

“When drivers are forced to rush routes, skip breaks or deal with abuse from passengers, safety suffers. That’s the real cost of privatisation,” Mr Grech said.

“Privatisation was supposed to save money. Instead, taxpayers are paying more for worse services.

“With the contract due to expire in 2027, there is a real opportunity for the NSW Government to properly plan the future of public transport in the Hunter. The first step should be returning the network to public operation.

“Newcastle’s buses should work for commuters, not private shareholders.

“The government has a chance to fix this mess and put the public back in control of public transport.”