Invercargill City Council is looking at changes to its subsidised travel programme for residents with impairments, following significant budget overruns. The Total Mobility scheme, which has been operating nationwide since the 1980s, provides transport support for eligible users. However, usage in Invercargill has surged in recent years, placing heavy strain on council finances.
A report prepared for this week’s meeting revealed that monthly overspending had reached between $80,000 and $100,000. The issue arose when the government increased the trip subsidy to 75 percent during Covid, and some taxi companies absorbed the remaining 25 percent. This led to a sharp rise in trip numbers, with some individuals taking up to 225 trips per month.
To address these costs, the council is proposing a series of measures. The first step would amend operator contracts so that users are always charged the remaining 25 percent. If this does not work, a cap of 30 trips per month would apply, after which the subsidy would reduce to 50 percent, subject to technical feasibility.
Council manager of strategic asset planning Doug Rodgers said changes would be phased in over three months because immediate action was needed. “I'm loathed to make it any longer for the pure reason that we could get six months into this programme without any changes and essentially the bucket will be empty,” he said. “And that is a pretty severe impact on the user.” Rodgers added that the current situation had effectively created a free service: “and who's not going to take that up?”
The cost to ratepayers is significant because the original 50 percent subsidy is funded 60 percent by the National Land Transport Fund and 40 percent by the council. The extra 25 percent added during Covid was funded by the Crown. With usage continuing to grow, the council’s share is projected to rise from about $1.46 million in 2024/25 to $2.1 million in 2025/26.
Mayor Clark and Mike discuss the abuse of the mobility service
Councillors expressed mixed opinions on the proposals. Councillor Alex Crackett said a compromise was necessary, while Councillor Lesley Soper highlighted that partial user contributions had always been part of the scheme’s fairness. Mayor Nobby Clark raised concerns that changes might cause hardship for people relying on the service for work, shopping, appointments, and leisure.
Currently, the subsidy per trip is capped at a regional upper limit, and most users—63 percent—use the service fewer than ten times a month. If technology cannot support the staged approach, the council may introduce a hard cap of 30 trips monthly. As a last option, the subsidy could revert to an even 50/50 split.
The proposed changes still require approval at a full council meeting.