Invercargill bus fares are set to increase after a central Government directive moving public transport funding from a rates subsidy system to user-pays.

The change will be included in the Invercargill City Council's (ICC) 2025/2026 Draft Annual Plan, which is currently open to public submissions.

ICC Councillor Grant Dermody said that while the Council sets fares, it must adhere to national policies aimed at making public transport financially self-sustainable.

“The Government wants to see public transport systems throughout the country operate in a more financially self-sustainable manner."

"At the moment, each bus trip in Invercargill costs $20 to deliver, but fares range between $1.10 and $3, representing a significant shortfall. "

"Meanwhile, about 65 percent of our passengers either pay a discounted rate, or travel for free,” Dermody said.

The proposed fare increase is expected to generate $266,000 annually, covering 8% of the $3.19 million annual cost to run the service, still below the Government’s 17% target for 2025/2026.

Residents are encouraged to share their views on the proposed changes by submitting feedback before the consultation closes on April 13.

Hearings will take place throughout April, with the final plan set for adoption in June.

For more information or to make a submission, visit www.letstalk.icc.govt.nz or pick up forms at local civic buildings and libraries.