Some more new developments in the Snapper/Integrated ticketing saga emerged yesterday. The Herald reports:

Auckland’s main bus operator could lose at least $70 million in annual operating subsidies if it fails by November to install machines capable of reading new electronic transport tickets.

Transport Minister Gerry Brownlee said last night that although there was no suggestion yet that NZ Bus would miss that deadline, the firm and its sister company, Snapper Services, would know the consequences of being in breach of contract by failing to meet it.

Asked what those consequences would be, he told the Herald: “They’re off the run.”

And from later in the article:

Mr Brownlee said he was “quite happy” there was a process in place to achieve integrated ticketing “and all the contracted parties just need to understand that we’re not backing away from that”.

Asked what would happen if NZ Bus refused to replace its existing machine readers with equipment compatible with the final system, he said: “They will be in breach of their contract and we will look at getting someone else to pick those contracts up.”

While this blog is often very critical of the government and it’s policies we are also prepared to give credit when it is due and in this case it is good to see Gerry publicly affirming the consequences if the latest deadlines aren’t met. Hopefully it is something that he will keep and eye on to ensure that everything happens as promised. There were also a few comments from Phil Twyford and Mike Lee about the issue:

Mr Brownlee said he could not confirm a claim by Labour transport spokesman Phil Twyford that National put Auckland in a difficult situation by pushing for Snapper’s card to be introduced to the NZ Bus fleet, as he was not minister at the time.

But Auckland Council transport chairman Mike Lee said Infratil lobbied the Government to change specifications to allow the card to be introduced ahead of the wider scheme.

He said that made it the Government’s responsibility to “hold the line” and ensure a successful roll-out of an integrated transport ticket.

I actually think there may be an element of trying to score political points here. As I mentioned in a comment on the post the other day, we do know that Snapper lobbied the government after they lost the tender but the outcome of it was that the issue was handed over to the NZTA to reinvestigate the options. The outcome of that investigation was that the NZTA not only agreed that Thales had the best offer but that they would modify the contract and set up the system so that it could be used nationally. I am also aware that the ticketing system that NZ Bus had before Snapper was falling apart very quickly as it was very old and getting harder and harder to maintain. It needed to be replaced and while I won’t rule out political interference, I kind of wonder if Phil and Mike are blurring some of the events to their own advantage.

There is of course now going to be a 6 month wait before we find out if Snapper has met their targets. Perhaps during that time AT could start working on getting integrated fares sorted out so we don’t have to wait so long for that to happen, it is after all critical for our new bus network.

A note to all readers, this post is not to become a place to continue on the arguments from the other day around about the merits or otherwise of Snapper. Please keep the discussion limited to the content of this post.

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12 comments

  1. Seriously, if NZ Bus lost all the contracts and someone else had to pick up the operation, what would be the follow on costs to AT (not to mention notional cost of pain to system users)? More than the $70 million I bet and the machines would still not be installed.

  2. NZ Bus also wanted to dump its old Wayfarers as they had big holes in regard to theft and audit trails.
    The big catalyst for Snapper in Wellington was a huge amount of unaccounted losses

    http://tvnz.co.nz/content/2834623/4202557/article.html

    More than $500,000 had gone missing over three years, until the Snapper debit card system became fully operational this year – exposing the discrepancies between the amount drivers received in fares and the amount they returned to the depot after their shifts”

  3. Sadly, those of us in Wellington are stuck in a holding pattern over integrated ticketing until Auckland is sorted out. The current draft regional long term plan indicates that we’re scheduled to fund integrated ticketing in 2016, but the date seems quite speculative at the moment.

  4. A big politician doing what he does – talking best.
    I very much doubt Brownless has any idea of what goes on between the ministry and Auckland Transport, and even more sure he has no idea of what clauses are in the contracts AT signed with NZ Bus for service delivery.
    “They’re off the run.” sounds good, but i doubt there is any fact to it.

  5. Well, if some political point scoring sorts things so that AKlL has a proper integrated ticketing system finalised on or before the Nov date, then great! Looking forward to seeing how things progress over the coming months…incl the results of the August trial.

  6. People seems to think that Thales is ready…that is way off the track folks. Thales is facing major issues in delivering what Auckland really requires. An informant told us that current system delivered by Thales is not field ready. They are in the process of doing MAJOR fundamental change to their ticketing engine to meet the requirements. Surely some elements should be ready, but its untrue to claim that Thales is ready. They are a big fat ass company who takes months to make any changes.

    1. Interesting, given the memo obtained by the Herald says they’re ready – “Thales has completed [its] contract” and the go-live is now waiting on Snapper.

    1. Hi guys,

      As perhaps a key commenter in a recent post about Snapper, I thought it would be sensible to write commending Matt L for asking that comments be only those relevant to his post. A very helpful suggestion. I wish you all well and look forward to the next post that does actually focus on the company.

      Cheers,
      Mike

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