Archive for the ‘Fare evasion’ Category
We are leaving here tomorrow. It is a shame to have to say this, but I am actually glad to be going home. Our landlady in Florence told us that there was no point in staying for two weeks, there was not enough to keep us here. We have been in Venice last weekend largely as a result of this advice. We fell in love with Venice, and would have liked to have been able to stay longer. The expense alone was enough to deter that thought. If we could have got back to Vancouver from there … well anyway. Let me tell you about today, which is all about the sort of issues that get discussed on this blog all the time.
Last weekend, on Saturday, before our departure for Venice next morning, we took the advice of our Lonely Planet guide and decided to “get out of town”. Fiesole is a beautiful Tuscan hill village with stunning views and amazing archaeology. You can get there on a #7 bus, from Piazza San Marco within the 90 minute validity of a single ride. So tram ride ride from the apartment, walk across the Centro Storico, and up the hill we go, with a bus full of American art students. When we get to the village square – where the #7 turns round and goes back down the hill – there is a sign on the bus stop. Something obviously rushed out at the last minute on the office printer. No service on the #7 after 15:00 because of a road race – the 100km super marathon – a big deal – through Fiesole which means road closures and who knows when regular bus service can be restored. We saw the view – stunning – had lunch – ordinary but twice the price because of the view – and then caught the next bus back to town in case we got stuck and missed our train to Venice in the morning.
Today we tried again. Fiesole deserved a second chance, if only for its archaeology. Not just Etruscans and Romans but Lombards too. The bus stop for the #7 was beseiged. Local buses could not get near because of a flood of tour buses. In Livorno a massive cruise ship had landed, and tipped off its human cargo onto fleets of coaches full of punters sold on the idea of seeing Michaelangelo’s “David” for real. They get to see Florence in the morning and Pisa in the afternoon (or vice versa). The #7 bus stand is close to the Academy where this version (the real, authentic, actual statue as seen on tea towels and t shirts) could be seen. If you are waiting for a #7 local bus and many tour buses occupy the space where your expected municipal service is going to be, you get anxious. What if the local bus drives straight past, unable to pick you up because of this huge, throbbing airconditioned landwhale is unloading its cargo of bemused, earphoned tourgroupistes onto the one person wide sidewalk? It was chaos I tell you.
Eventually things sorted themselves out and the #7 arrived and we boarded within our permitted 90 minutes. It was a struggle for the bus from there but we just sat and observed how the usual dramas of urban life unfold. An MVA involving another bus, a BMW and a motorscooter, closing three of four lanes. A delivery van, double parked, while urgent packages are rejected for damage incurred while dealing with … a sudden intervention by several varieties of cops (carabineri, local plods, security company wannabes) misdirecting – an ambulance with the horrible wailing siren, unique to their kind, makes all thought impossible. Daily life in Florence.
We got there. Roman ruins were seen. The difference to Etruscan ruins was noted. Lombard burials were studied in minute detail. The play of mottled sunlight on Tuscan hillsides was dutifully recorded. Lunch was eaten, beer was drunk, Fiesole was given its due. Time to return. The #7 is waiting in the square but somehow some other distraction means that it has – how sad – circled the roundabout and gone back down the hill, without us. We find a bench in the shade, where we can wait the quarter hour that must elapse before another #7 will appear. And as we sit observing the human life around us, we note the numbers of others who place themselves between us and the bus stop. There is no orderly queue. The bus has three doors, and all are fair game for entry. And the capture of the very few seats – let alone those that face forward and allow a view out of a window – requires strategy and cunning.
When the bus does arrive, two schoolgirls nip aboard and occupy the seats designated for those over 65 – to which I am entitled and feel that I have earned, being at the bus stop a full 15 minutes before they appeared. My partner deals with the smart cards (proximity reader not being proximate to the desired seats). They get the window seats and pretend not to understand my protests.
But all is well and we are seated, if not optimally at least satisfactorily, and eventually the girls get off and we can arrange ourselves … wait, what, some scruffy individual, wants to inspect my ticket?? No uniform, no apparent authority?
It seems when the “smart card” was waved in front of the reader, no new ride authority was actually established. My partner’s card is fine, mine despite its three ride validity remaining is deemed “expired”. FIFTY EUROS cash to expunge the offence, once the details of the UK passport I carry with me to get free entry into National Monuments (but not, be it noted Fiesole Museums or archaeological sites) are copied onto a three part, no carbon required, form. He even digs into his clothing and produces photo ID which shows that he is actually the Yoda of ATAF – so there is no point in arguing – and a new crisp €50 note saved for “a rainy day” is handed over. The alternative is not worth contemplating. The shame, the publicity, the headlines. Far better to sign on the dotted line on a form – being Italian – that I have no hope of understanding. Your card reader, ATAF, failed but I must pay the price, or face ignominy.
I note, from a distance, that once again the Compass card is under assault. That Cubic is once more fair game in the fare evasion/faregates/fare or foul fraud foofooraw. Meh! Life goes on. I will be back next week, refreshed. Able to sleep all night and function on Pacific Summer Time. This too will pass.
The Guardian reports this morning “Glaswegians revolt over ticket changes for ‘Clockwork orange’ subway system”. Like the Translink issue, the problem is that the new stored value “smart card” (in Glasgow called “Bramble”, in Vancouver called “Compass” and in the Guardian compared to London’s “Oyster”) is being introduced at the same time as a significant fare increase.
some passengers have been angered by the withdrawal of 10 and 20 journey tickets, which took place in June, arguing that the new system will leave them paying considerably more for their journeys.
This is precisely the same issue we have with Compass. It really surprised me that the (paywalled thus not linked) Sun actually produced a pro-Translink editorial on the subject. Indeed, I think this must be a first for that organ. It reads like a Translink press release, except that is criticizes those who use other media to voice their opinions. Because they differ from the official line, and the Sun, and, of course, in some respects with each other, they must be wrong.
The Guardian concentrates on the withdrawal of fare discounts. There is not quite the huge penalty for cash use for some kinds of trips as here – but there are definitely incentives to use the smart card. The problem is that these incentives are not nearly as good as earlier incentives to use transit more frequently. Paying up front for a bunch of tickets helps the organization’s cash flow. Not everyone makes two trips every weekday, so passes are not a universal answer. Monthly discounts work well for commuters, not so well for people who have a more varied trip pattern. The point about Oyster was that did not matter as the system would ensure users got the best deal going no matter how many trips they made. The policy in London at the time of its introduction was to encourage people to use the transit system.
Translink made two fundamental errors. The first was to use the introduction of Compass to raise fares in general. At the same time it has been forced to cut service in many places, to meet overcrowding elsewhere. It has not been able to do enough for the most crowded routes and at the same time it has caused considerable inconvenience to users who were already putting up with slow and infrequent services. The second was to ignore the lack of provision in the new system to open gates with existing magnetic media during the changeover period, which was going to have to be years not months due to the need to replace bus fareboxes that could not issue Compass tickets for cash. Due to the omission of this facility in the specification of the system, and the lack of funds to replace not yet life expired bus fareboxes, one type of “seamless” journey (cash on the bus transfer to SkyTrain and SeaBus) would not be possible. It is possible to buy magnetic readers for fare gates – or for ticket vending machines. It may have seemed expensive at the time, but in the context of a hugely expensive and uneconomic (it cannot ever pay for itself) crackdown on fare evasion, balking at the last few million having lashed out $170m of public funds seems obtuse. And by the way, Compass itself will allow for new kinds of fare evasion.
I frankly doubt that the idea of making people pay twice for one direction of travel really was thought of as a good incentive to switch to Compass. It sounds to me like people covering their rear ends after discovering an omission. And – to correct the false information in the Sun’s editorial – it was not “leaked”. The bus operators were concerned that the passengers who found out about the need to pay twice would take it out on them. The operator is, after all, the most visible and vulnerable face of the organization. I have always preferred the cock-up theory of history to the conspiracy theory. That does not mean there is not evil in the world, just that bad things happen more often due to mistakes than deliberate malevolence. For reasons that we need not discuss here, Translink has long been incapable of admitting error. Yet it is run by people and therefore mistakes are inevitable.
The most egregious error now is that the view that Translink is using fare policy to deter ridership is gaining credence. The transit police in particular have taken to tweeting (and other communications) in ways which have convinced many that bus transfers will not be accepted anywhere on the system.
It is too late now to roll back the fare increases slid through as part of the Compass system. It cannot now be made to look like something that every transit user will welcome. It is not about being convenient. It is simply a worse deal than transit users now get. And Translink should admit that. The discount for ten rides is not nearly as good as with ten tickets. Don’t pretend that we should be happy with that. Translink could move back the day when the gates close until something can be done for those with bus transfers. Or operators could simply inform cash payers that they will have to pay at the station (not on the bus) to get the gate to open. After all, unless a fare boundary has been crossed, there is no revenue loss. Compromise is a solution that dissatisfies all equally. Translink cannot now expect to win everything it wants. The ease of transfer is essential. We always have had an integrated fare system and retaining that ought to have been a prime objective in adopting any new system.
This is not to damn Translink and all its activities. This is not part of a “hate on” against this or any institution. This is pointing out that a mistake has been made and must be corrected. Pretending otherwise is simply not good enough.
Jeff Nagel in the Surrey Leader drawing attention to a problem that is actually not that much worse than it always has been
This appears to be the key statistic that justifies the headline
“The recent provincial audit of TransLink found fare evasion across the entire system more than doubled from an estimated $6.6 million in losses in 2001 to $14.5 million last year, while ridership climbed 21 per cent in the same period.”
Though what appears to have prompted the story is the complaint of the bus driver’s Union that their members are tired of pushing the button that counts those who refuse to pay.
Jeff updated the story
after a Twitter follower rightly asked how much fares have risen over the same period.
(Answer $1.50 – $2.50 for one zone cash = +66 %.)
The recent provincial audit of TransLink found fare evasion across the entire system rose 120 per cent from an estimated $6.6 million in losses in 2001 to $14.5 million last year.
That’s less dramatic than it sounds – factor in a 21 per cent increase in ridership and a 65 per cent fare price increase since 2001 and losses should account for more than $13 million by now if the same proportion of riders cheat.
The story directs attention to the evasion that will not be stopped by the new faregates on SkyTrain. And there is also the suggestion – rebutted by Gordon Price and Peter Ladner – that somehow loss of money due to fare evasion is a reason not give Translink any more from taxes.
Translink revenues in 2001 from all sources were $451m (source: Translink 2001 Revenue and Expenditure Report)
Transit revenues (mainly fares) were $78m but that was also the year of the strike – so 35% less than budgeted. So not really surprisingly, the amount lost to fare evasion in that year would also be well down – as no transit was running for four months!
Jeff pointed out in an email to me “the figures in the audit must adjust for the strike, otherwise the 10-yr ridership gain would be much higher than +21 % (294m to 355m cited in the audit.)”
What really needs to be compared is the rate of fare evasion. In 2001 it was around 8.1% of transit revenue. In 2011 transit revenue was $444.7m (source: 2011 Year End Financial and Performance report) $433m coming from fares – so the rate of loss was 3.3% of fare revenue (3.2% of transit revenue).
Actually, there was some work done on fare evasion around that time, by KPMG and in a report in 2002 they estimated fare evasion at $6.7m or 3.9% – but conceded that the lack of data on buses meant that it could have been 4%, or $1.4m more. Indeed 4% is one of those easy to remember figures that is still in my head, and I am glad that I have now got the source for that.
So the headline does seem to be misleading. Forget the use of 2001 as a base year, since clearly things were not “normal” then, and look at the long term trend and it seems to me that the best estimate we have of Translink is that the rate of fare evasion has been reduced – from around 4% to something closer to 3%, And that is before the new measures to improve collection on fines had been implemented. The faregates are expected to reduce fare evasion by $7.1m a year (source Business Case summary) so roughly half of what is now thought to be lost.
But after all, it must be remembered that all of this is based on estimates. The whole button pushing business (“refused to pay”) does not begin to measure fare evasion. How many people simply waved a pass at the bus operator – but were not actually entitled to use that pass? How many people decided to pay a concession fare when they should have paid full adult fare? How many had a ticket for a shorter journey than the one they actually made? After all, if you stop someone, inspect their ticket and ask them where they got on, you cannot really expect all of them to be completely honest. If we had really good data on travel around the region in general, then maybe we would have a better idea of that the revenues ought to be – but even then that usually relies on self completion surveys. Do the sort of people who are responsible for consistently defrauding the fare system answer such surveys – and would we believe them if they did?
This blog post has been corrected from what was originally posted.
By the way, I do want to place on record here my real appreciation of some very good work done by Translink on their website. The search function on the Document Library has been greatly improved, and this morning I was finding what I was looking for really quickly. This may have been implemented some time ago, and I missed it, for I have been avoiding going into the archives – but this story required it. Thank you.
CORRECTED 16 August – my math was at fault
TransLink’s $171-million program to install faregates at SkyTrain stations and the SeaBus in Metro Vancouver isn’t expected to reduce policing costs
So then all the expected savings have to come from collecting more fare revenue. One way you can tell when somebody’s lying is that they do not answer the question directly but point to some other true statement that makes them look better. So when you look at Translink’s performance recently on fare gates, you have to take into account how often the new smart card gets brought into the discussion. Smart cards could have been introduced at any time, once the new machine readable tickets were introduced. It is just matter of plug in modules for ticket vending machines (TVMs) on buses and stations, and they were designed that way. Similarly the payback calculations treat contributions from provincial and federal governments as cost reductions – which from a narrow, institutional perspective (commonly accepted standards of bookkeeping) might be acceptable but for public sector accounting is simply a fudge.
The province provided $40 million and the federal government contributed $30 million from the Building Canada Fund. TransLink will fund the additional $100 million.
So we ought to be looking at the payback on $170m not $100m. But we also need to discount the effect of the introduction of the long overdue new regulations that put fine collection revenue into Translink (not the province) but also give them powers to collect those fines. When it comes to people saying how much fare evasion has been reduced the period between now and the new gates going live will be the critical one to assess the effectiveness of these measures. Note that the possession of a driver’s licence is important to make these rules work. What happens when someone has no license is less clear. So far as I am aware, we are still in this country not required by law to carry an identification document with a valid mailing address. This seems to me to be a critical weakness of the collection of fine revenue.
Transit police Chief Neil Dubord said some 60,000 violation tickets were issued last year, and similar numbers are expected for 2012. In 2011, TransLink lost $14.5 million in revenue, which is a combination of people not paying or paying only a partial fare and travelling into extra zones.
Of that figure, $7.7 million in fare evasion occurred on rapid transit, with $6.2 million on buses. So far in 2012, TransLink has lost $6 million in revenue.
These figures are very different from those that Frank Luba was quoting yesterday from earlier Translink reports.
TransLink did audits in 2004 and 2008 that showed annual losses to fare evasion on the rapid transit system were between $5 million and $9 million. But another TransLink report from 2005 showed that yearly operations and installation costs for the system amortized over 20 years would be $30 million annually.
Now $14.5m is a lot more than $5m but then fares have gone up a lot since 2004. Fare revenues last year were $356.6m (Translink 2011 Annual Report) so the evasion rate is still around 4%. Actually, the evasion rate is probably higher than that, simply because this only counts those who were caught, and accepts what they said about their journey as truthful. There will be some people travelling on tickets they were not entitled to (concessions and passes) and others making longer journeys but only buying a single zone. If there was much better data on travel that did not depend on ticket purchase data then there might be a better understanding on the extent of evasion, but we have for many years preferred to cut the cost of data collection to the point where I begin to doubt the validity of a lot of what is said about travel here.
There is nothing said about the additional operating costs of moving to a gated rather than an open system. This extends far beyond policing costs, but also requires some insight into how the staffing needs to change to cope with the new system. I would not expect Translink to be forthcoming on these kinds of details (but see that 2005 data Luba quoted) and anyway the use of Compass already makes the situation confusing enough. Let us assume that they are lucky enough to cut evasion in half in the first year of operation and let us further credit all of that to the gates – forget the extra revenue from fines. So now Translink has $7m a year to pay down the $100m it is spending – and again we assume that policing and operating costs are a wash. Which is pretty much what Doug Kelsey was saying yesterday.
Kelsey said TransLink is optimistic the system will “pay for itself,” with savings of $7.1 million every year, starting in 2014.
CORRECTION But the faregates only impact SkyTrain. So if they cut fare evasion there in half, there is only $3.8m in “new” revenue, since evasion on SkyTrain is said to cost $7.7m a year now.
I do not see how this “pays for itself”. I also see no estimate of how much it is going to cost to rebuild Main Street and Metrotown stations to allow for the gates to be installed – all of which I think needs to be charged to the Faregates account since it would not be necessary (however desirable) if the project had not proceeded. I suspect too that the gaping hole on the revenue protection fence that will exist until these two stations are gate fitted, which will also significantly lower the expected savings.
The decision to install faregates was made by Kevin Falcon when he was Minister of Transport. It made no sense then and it makes no better sense now but we are stuck with it. It is also too late now to turn back the clock and unmake it, and the BC Liberals are now so low in the polls that one more scandal can add nothing to the balance. Next year they are gone, and then – hopefully – some more sensible transit (and related) policy making will be seen. Not that that was a feature of previous NDP governments, but we must have hope, mustn’t we?