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$10 STC fares won't keep tax dollars off the bus

Author: Lee Harding 2010/05/04

Crown bus company Saskatchewan Transportation Company is renewing its promotional month of cheap one-way tickets for seniors. According to an STC press release, last September's $7 ticket to anywhere in Saskatchewan brought a 227 per cent increase in senior ridership and an overall rise in ridership of 40 per cent." That's good. However, no one should have any illusions that the bus company that lost $11 million last year will suddenly make its first profit since the 1980s.

A Freedom of Information request made by the CTF last year showed that despite the massive increase in ridership created by the seniors' one way fare, revenues from seniors riding the bus in September actually decreased by 10.2% because of the promotion. Other special promotions in 2009 had similar results: increased ridership, but decreased revenues. The only exception was the 50% discount on trips to La Loche. This generated a 1.3% increase in revenue, though it is doubtful this made the long trip anywhere near a money-maker.

All this to say, don't expect that STC taxpayer subsidies, now exceeding $80 million since 1999, are going away any time soon.


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