COST AND SUBSIDY ISSUES IN URBAN PUBLIC TRANSPORT

This paper was presented at Session 6a: Rail costs and operations. Over the next decade there is likely to be a growing demand for the extension of and quality improvements in urban public transport services. It is also likely that the already significant levels of deficit incurred by such services will further increase, heightening pressures for a reduction in services. It is suggested that a solution to this conflict will only be found by clearly identifying the social objectives to be met through the provision of such services. This will enable the costs of particular policies to be determined and provide a defensible and identifiable basis for the determination of fare and subsidy levels. An example of the type of cost analysis necessary is given in outline in the paper. Attention is drawn to a number of conclusions that are made possible by the analysis (a). The number of the covering abstract of the forum is IRRD no. 250625.