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News & Views from the RTBU NSW Locomotive Division

The Free Ride’s Over

Feb 12, 2014News

The Senate recently announced an inquiry into the productivity benefits of investing in public transport, to which the RTBU National office has provided a submission to titled ‘The Free Ride’s Over’.

Written with input from the National Institute for Economic and Industry Research, the RTBU’s submission’s key findings include:

*   In the immediate post-war decades, total transport investment stood at 70 per cent of all non- primary investment. By the 1980s this had fallen to 30 per cent and today it is less than ten per cent.

*   On an investment of $100 million in transport infrastructure, it is estimated that the impact of significant multiplier benefits would be equivalent to around a $400-$700 million increase in GDP.

*   For every $100 million governments invest in public transport assets, the return on the investment from increased revenues and reduced expenditure exceeds the cost of the investment by almost $1 billion.

*   NSW lost around $18 billion in additional income, Victoria almost $20 billion and Australia $48 billion as a result of lost productivity stemming from a failure to maintain the 1980 expenditure levels on public transport

You can see the full submission here.

The terms of reference for the inquiry can be found here:

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