Working group proposes employer-subsidised public transport ticket
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A working group set up to promote public transport has called for arrangements that would make it feasible for employers to subsidise the public transport costs of their employees. The working group estimates that making transport tickets a job perk could bring thousands of new customers to the public transport system of the Helsinki region.
In a proposal made public on Thursday, the working group also calls for a uniform transport ticket for the whole Greater Helsinki area, and improvements in train and bus connections in the region.
Under the proposal, an employer would pay for 25% of the cost of a ticket, and the employee would pay the rest. The cost of the ticket would be assessed for tax purposes at 75% of its real value.
The system would be applicable in the whole country, but its greatest impact would be in the Helsinki region, where the working group estimates that it could bring between 8,000 and 9,000 new passengers to the area’s public transport network.
Although it would reduce state and municipal tax revenue somewhat, promoters of the model say that the overall economic impact would be positive; up to four times its original costs would be recouped in the form of reduced traffic congestion and accidents.
The report was received by Minister for Transport and Communications, Leena Luhtanen (SDP) on Thursday. She said that she hopes that negotiations on the issue could start already this autumn, so that the system could be factored into the upcoming incomes talks.
Proponents predict that the system could be taken into use in 2006.
The Ministry of Finance has a key role in the matter, as it is currently preparing measures to simplify the tax deductibility of travel costs. A representative of the Ministry of Finance on the working group submitted a dissenting opinion on the project, and on the financing of the whole proposed transport package.
Under the proposal, the cities comprising the Helsinki Metropolitan Area Council - Helsinki, Espoo, Vantaa, and Kauniainen - as well as the surrounding communities Järvenpää, Kerava, Kirkkonummi, Nurmijärvi, Sipoo, Tuusula and Vihti, should all set up a uniform transport ticketing system for buses and trains in the region.
The working group also calls for more rail connections in the area.
Transport Minister Luhtanen said that she would bring the proposals for rail improvements, including the call to extend the Helsinki metro west to Espoo, before the government’s ministerial committee on economic policy.
The proposals have been prompted by a concern over the declining popularity of public transport, attributed to the lower sales tax on cars, higher ticket prices, and cuts in state subsidies.
Luhtanen came out against a proposal for toll fees to be levied on cars in rush hour traffic.
Helsingin Sanomat
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| 3.9.2004 - TODAY |
 Working group proposes employer-subsidised public transport ticket |
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