NEWS ALERT: Transport Minister Reveals Financial Incentives to Cancel Services in Privatised Bus Contracts
Transport Minister Jo Haylen has uncovered a scandal in the privatisation contracts made between the former Liberal government and private bus operators that won the contracts to run bus services. The contracts revealed financial incentives for companies to cancel services, leaving millions of passengers stranded at bus stops waiting for buses that never arrive.
The contracts for Sydney buses imposed financial penalties on the companies for failing to meet ‘on-time running’ targets. However, services that were cancelled did not count as late, and penalties for cancellations were only imposed up to a certain number. Once that threshold was reached, the companies made more money if they cancelled a bus that might run late.
Minister Haylen is seeking urgent advice on how to legally rectify this situation and permanently improve bus services across the state. Local MP Sonia Hornery has invited the Minister to examine the local Keolis Downer contracts with her in Wallsend.