Last week, within the space of 24 hours, voters heard two very different proposals to improve New Zealand’s public transport system.

On Wednesday, Labour promised to cap weekly fares at NZ$20 in Auckland, Wellington and Christchurch – and $10 everywhere else – if elected to power in November.

On Thursday, Transport Minister Chris Bishop, of incumbent National, responded by suggesting the government could use its $450 million fuel emergency fund for more trains and buses at peak times.

One policy lowers the price. The other adds service.

But, while both sound sensible, neither represent a serious plan to meaningfully address the challenges left by decades of underfunding.

The flaws of fare caps

Under Labour’s cap – which would applying to fares across buses, trains and some ferries – the biggest winners would be those commuters who pay full fares to regularly use services.

In Auckland alone, about 25,000 passengers come close to reaching the city’s existing $50 weekly fare cap. For an Auckland passenger who makes ten two-zone trips each week at a cost of $49, Labour’s cap could save them roughly $1,500 a year.

For other users, the gains would be comparatively modest. A two-zone Community Connect passenger paying half-fares, for instance, currently spends $24.50 for........

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