CHAIR - The schedule for this scrutiny is up to 12 o'clock so it will be less than two hours now. I welcome the minister, Chair and CEO to the committee. I remind members about the practice of seeking additional information for GBEs. The question must be agreed to be taken by the minister or the chair of the board and the question must be handed in writing to this committee's secretary. Minister or Chair, if you want to give a brief opening statement - it needs to be kept reasonable since we have less than two hours now.
Mr FERGUSON - Thank you, Chair. After taking responsibility for the Infrastructure and Transport portfolio in July I have thoroughly enjoyed becoming more familiar with Metro and its operations. Metro is a very important service provider for our state, particularly for people who want to get to work on time and for people who can't afford a motor vehicle. It's about connecting people with work, education and training, health, retail and services, loved ones and their community, and of course it takes pressure off our busy arterial routes.
In 2018-19 Metro did this over 8.5 million times, increasing patronage, I am very pleased to say, for a sixth consecutive year via consolidating network improvements, a better fleet and focusing on customer service. Today, I will briefly touch on some of Metro's key achievements in the past year.
Metro has successfully encouraged more people to use public transport and has attracted an increase of statewide patrons by 2.2 per cent. This is the sixth year that has occurred and it reflects the Government's and Metro's strong commitment to ensuring public transport takes Tasmanians to where they need to be and connects them with employment and education opportunities in the community.
Full fare-paying adult passengers represent the majority of Metro's patronage growth, rising 11 per cent in that financial year, and that follows growth of 16 per cent in the previous five years. From Metro's perspective, better mobility outcomes in Hobart rely on a reduction of single car occupancy, as one bus has the capacity to take up to 60 cars off the road, and we fully pursue that priority approach.
Measures like clearways, bus lanes and priority lights make buses a compelling alternative to the private car, offer a true commuter incentive and can be implemented relatively quickly and cheaply. Our $45 million investment in 100 new Tasmanian-made buses on-island for the Metro fleet is a vital project and it is progressing on time and on budget. By the end of the financial year Metro had welcomed the first 39 of these buses and was delivering nearly 80 per cent of services using low-floor vehicles. As the state's largest advanced manufacturing project, Metro's accelerated bus replacement is boosting the sector and has created over 30 new jobs in north-west Tasmania. We trust that the community is as proud as we are at these new buses that are being built in our state by our people.
In the customer satisfaction and safety space, Metro has confirmed that passengers agree that Metro is doing a fine job. Overall satisfaction has increased from 73 per cent to 76 per cent and we want to continue to see that improve. A total of 81 per cent of respondents were pleased with the service provided by drivers and respondents were emphatic when asked about their personal safety, with 83 per cent satisfied.
In ticketing, Metro is now implementing the Government's election commitment and is working with stakeholders, including the Department of State Growth and TasBus, to plan a transition to a more modern integrated ticketing platform. We see this as a real opportunity whose time has come and we expect to make an approach to market next year for a public transport integrated ticketing system.
In relation to the Launceston network, which I'm sure will be interest to the committee, in 2016 Metro launched a new bus network for Hobart. That has been operating for four years now and first boardings have increased by almost 7 per cent. The same principles that were adopted in that redesign are being adopted in the design of the new Launceston bus network. Many great people have been working hard and the design of the Launceston network has now been finalised. Extensive consultation has occurred, more than did occur with Hobart, which is lessons learned, making sure we go back to our community again, and that has happened. After that extensive consultation, it is set to launch on 19 January 2020. Information on the new network routes and timetables will be available on the web, and will be distributed to commuters in printed form over coming weeks. I know Metro and our drivers are very excited to be operating those new routes.
Bus prioritisation: Metro is working closely with the Department of State Growth to develop better and further bus prioritisation measures in Hobart. We need to see this happen. Significant measures to improve traffic flow and ensure Metro buses can move more freely through the city and incentivise public transport have now been introduced. We have extended the clearways on Davey and Macquarie streets, ensuring vehicles parked in clearways are now being removed, and also clearing crashes and breakdowns more quickly.
This year, the Budget contains more than $30 million, and we want to see more congestion-busting measures going forward, including bus priority measures on key routes.
I will be calling on local councils that have not yet actioned their proposals to provide dedicated road space for buses to get on and do that. The advice has been received, and we would like to see the same interest and urgency as the state government has provided. We want to see those sensible practical measures, implemented on roads that are not governed by the state, done by local councils. With that in mind I have written to the local council.
Metro should be congratulated on achieving this range of results. We are certainly aware of the challenges. We are up for those and will be pleased to respond to questions that the committee may have, noting of course that Metro does play an important role. We want to see Metro play a greater role in the day-to-day life of Tasmanians and the community we serve in 2020.
Ms DOW - Minister, Metro drivers report heightened levels of stress related to congestion and time delays and antisocial behaviour on buses. Do you acknowledge their concerns? What strategies does Metro have in place to better support their drivers?
Mr FERGUSON - Thank you, Ms Dow, for the question. I will ask the Chair and CEO to also add to my answer.
I totally agree that antisocial behaviour is entirely out of order and it should not happen. We feel very strongly, as shareholders, as a government, and as a bus transport company, that this is unacceptable where it happens. It is unfair that our drivers should ever have to experience that kind of abuse or antisocial behaviour in their workplace. We will respond to that further please, Megan.
As to congestion, this is a challenge for all road users, particularly in the busy capital city during periods of peak traffic times. We share those frustrations. As a state government, we have already implemented immediate action, and we now have further actions through our congestion-busting policy, which is unmatched across the political spectrum. We are implementing those very rapidly, as we are able to do with State Growth working very hard on that, and getting expert advice about how to do it.
In terms of welfare for our staff, I will certainly ask the Chair and the CEO to respond further.
Mr GARDNER - First and most important, we take the health and wellbeing of our workforce incredibly importantly and seriously. It is the highest priority for our organisation, and we do not like to see any of our workforce suffering stress in the workplace. Our operators are at the front line of our service delivery every day. As you will note, 8.5 million passenger movements means there will be times, unfortunately, when they do experience situations that are certainly not of our liking in terms of the behaviour of passengers.
However, we have processes within the organisation to provide support around that. We have a very active health and safety program, with a health and safety reference group that comes together from all parts of the organisation. The aim is to work through every one of these issues and to seek better outcomes, and to support our drivers in every opportunity we can, to ensure that we as an organisation are fulfilling our duty of care and providing support for them.
Ms MORSE - We acknowledge the extent to which congestion does underpin a significant amount of the stress in our workforce experiences on a day-to-day basis. It also tends to underpin a significant amount of customer feedback where that customer feedback is adverse - whether that is feedback we have received after an incident, or interactions on board. We have already stated the importance and the value of supporting free movement of our vehicles on road - and we can't overstate how important that is, right across our business.
Ms DOW - Minister, does it concern you that some drivers are having to knock on private-property doors to use their toilet, especially across regional areas where there are limited public toilets? How does Metro intend to address this, and other issues related to accessing toilet facilities, and extended periods of time on buses without access to a toilet?
Mr FERGUSON - I will ask our CEO, Ms Morse, to respond from an operational point of view. It has been raised with me as well, as the portfolio minister, by the union concerned, and I share their concerns where this has happened. We need to have full perspective on this. It is a rare occasion, I believe. I am advised that such an embarrassing situation may occur, and that it is very rare, but nonetheless it is for all of us to try to ensure it is avoided in all circumstances.
Ms DOW - It is pretty real for those people, though, particularly in regional areas.
Mr FERGUSON - I am advised by Metro that while the issue does get raised repeatedly, it is quite a rare incident in which an embarrassing event like that may occur. We comprehend and take on board the feedback. I will ask Ms Morse to respond on that.
I want to address your earlier question with some numbers, which I know the committee will find useful. As I said earlier, we find it absolutely unacceptable when people who work for our organisation are treated poorly by members of the public. There have been nine assaults on bus operators in the financial year. There have been 32 missile throwing incidents in that financial year, from roadsides or from overpasses - completely unacceptable. These are statewide figures for those incidents, from right across the state, but they should be zero. It is completely unacceptable, and it is something that we and the organisation take very seriously, and engage law enforcement whenever we can to ensure those incidents are apprehended.
Ms MORSE - Metro faces the challenge in how we support our workforce once they have rolled out of our depot, that we operate mobile and in a centralised business. At present we have access to 119 facilities across the state. They are a mix of facilities that Metro owns, maintains and provides, often in partnership - whether that is with local government, other community-based facilities such as neighbourhood houses, in some instances, it is retail and fuel outlets. We have a range of creative solutions in how we might support someone who is out in our network and experiencing a need for a comfort break.
In terms of that distribution across the state, it is reflective of how we are placed within our network as well. We have 60 sites in Hobart, 22 sites in Launceston, and 37 sites in Burnie. They are distributed across the regions, whether that is urban, non-urban, or east, north and south in a Hobart context. It is an area in which we are continuing to work with partners, as areas of potentially unmet need come to light. The business is proactive in attempting to identify possible solutions to assist someone out in the network.
Ms DOW - Last financial year, $106 000 was paid to Peopleworks for a consultancy for employee contact. What was delivered by Peopleworks, and why was it necessary to outsource this work?
Ms MORSE - Peopleworks was assisting Metro, and our People and Safety team specifically, in a range of return-to-work initiatives for staff who had experienced an injury or incident in the workplace, and whether that was being managed as a medical-time or a lost-time injury that they were a provider of assistance and support to us in that regard.
Ms O'CONNOR - Minister, the Metro workforce, particularly the full-time workforce, appears to have shrunk this financial year. Can you provide the numbers of full-time, part-time and casual workers at Metro for this and the past financial year?
Mr FERGUSON - I will ask the CEO to respond and provide you with the part-time and full-time split for the financial year.
Ms MORSE - As at 30 June 2019 we employed 497 people and that equated to 431.7 FTE. Regarding the part-time and full-time split, I don't have that as a percentage but there are 286 full-time in Hobart, 63 full-time in Launceston, and 17 full-time in Burnie. The vast percentage of our workforce is employed on a full-time time basis.
Mr FERGUSON - I get 65 part-timers across the state, which I was mentally able to calculate while you were answering.
Ms O'CONNOR - Can we confirm, minister, that the Metro workforce appears to have shrunk and there is also one less bus in the Metro fleet this financial year compared to the last financial year? How many buses were cycled out of the fleet during the past financial year? Why were more not kept on for longer, given the need to increase access to public transport services and ease congestion?
Ms MORSE - In terms of our bus numbers at the end of financial year, I guess consistent with the accelerated bus replacement program, whether we still had a bus on hand that had not yet been disposed of would account for the variation of a single bus. Metro operates under a contract that specifies the number of vehicles we operate. That number has been consistent for a long period of time. In terms of not retaining vehicles that are being retired from the fleet, they are absolutely at the end of their working life. So it is very much the case that they're being retired, having provided the business with great service, but they are no longer viable in terms of continuing to operate.
Ms O'CONNOR - Thank you. Minister, given that there is a pressing need for more services on more routes, how do you see Metro being able to meet that increasing demand when the number of buses is down as well as the number of drivers?
Mr FERGUSON - We don't accept the accusation that is implicit in the way you have constructed the question.
Ms O'CONNOR - It is not an accusation.
Mr FERGUSON - I feel the CEO has adequately responded to that concern.
Ms O'CONNOR - The demand concern?
Mr FERGUSON - The concern as to the number of buses and staff. We take in good faith your question relation to services and we are absolutely committed to providing better services. That is what the public is telling us - and me as the new minister - we need to do. It is my informed opinion that the bus network in the north and north-west really has stagnated over the passage of time and we need to refresh and provide the community with a public transport service which meets their actual needs rather than asking them to fit in with our time frames.
Ms O'CONNOR - People in the south would argue that they need some upgrades here and better services and more consistency.
Mr FERGUSON - I am happy to go across the different regions. In the north and north-west we are advanced in our work on refreshing the network. We need a new network. It is not just about an extra bus stop here or an extra timetable schedule route added here or there. We need a new network. It is well past it. In Launceston, I am thrilled that the public consultation has been as positive as it has. Let's be honest, not everybody absolutely loves it but the majority of people are really looking forward to the new network because it will provide them with a service that will help them to get where they want to be. There will be more opportunities to catch a bus on key routes more often and there will be more express routes.
We wish to achieve the same in the north-west and we are going through that consultation process right now. I feel we have learned lessons from the way the network was refreshed in Hobart and while the consultation was well intended, we took advice that we could take a more comprehensive and repeated approach going back to the public in the north and north-west and we are doing that.
As for the south, where your question is concerned for, Ms O'Connor, I will always take advice about measures that can assist with helping people to choose to take the bus. I want to re emphasise, and I will take advice on this, that with the 2 per cent increase in patronage we have seen statewide, far and away the biggest increase in patronage of our service has been in the south. Is it not 16 per cent?
Ms MORSE - In terms of the comparison between the new network being introduced in January 2016, we have had a 16 per cent increase across those four years.
Ms O'CONNOR - I guess that is where I am coming from in good faith, that there is an increase in demand but there is no increase in buses, drivers or routes.
Mr FERGUSON - I might put it a different way. I am not rejecting the premise of the question but I am saying that people are responding to the new network. They are actually saying, 'I'm going to catch the bus because it now suits my needs'. It is not just an increase in demand; it is an increase in patronage. In fact, it may end up meeting the demand that pre-existed that we weren't meeting.
Mr GARDNER - It is also worth noting that as an organisation we work to the constraints of our contract and we provide all the resources we can to meet the needs of that contract. Ultimately it is the Department of State Growth that is the buyer of our services. They have mechanisms for identifying need and where they identify need and the associated funding for buses, we will put buses and people there to meet that.
Mrs RYLAH - The Government's $45 million investment into the 100 new Bustech Elphinstone buses built in Wynyard is the largest investment in public transport in Tasmania's history. Can you provide an update regarding the progress on this upgrade to Metro's fleet?
Mr FERGUSON - I can, and thank you for the question. I know everybody will be interested in this, and I won't labour the point but just indicate some key features of this. This $45 million project has been a huge investment by our Government and is the largest single public transport investment the state has ever made. It is going really well, with 100 new buses being built in partnership between Bustech and Elphinstone Sustainable Energy and Engineering Solutions, as you say, Mrs Rylah, in the beautiful town of Wynyard. That is creating over 40 new full-time jobs across a dozen local companies engaged in the supply chain, including Penguin Composites as well. This important project is being delivered on time, on budget and on our island.
As at 20 November 2019, a total of 52 buses are now in service in Hobart and Launceston, and most recently the new buses were launched into the Burnie network. There was quite a deal of extra excitement around the new buses for Burnie.
The team at Elphinstone Engineering Solutions is doing a magnificent job building these new buses, with 26 new jobs at its Wynyard manufacturing plant, and other local companies leveraging off this project to improve their skills and create new roles. Pleasingly, the new buses feature Euro 6 standard diesel engines, which are the lowest emitting diesel engines on the market. They have 94 per cent less nitrogen oxide, 96 per cent less particulate matter emissions, and lower sulphur than the buses they are replacing.
The new buses are also constructed with a specific design principle of a chassis which has the potential to be converted to electric once that technology is proven viable for the network topography - noting it is a bit hilly in some parts of Tasmania - and operating conditions that are encountered by Metro. In effect, the diesel engine can be swapped out and an electric engine swapped in when the diesel engine is at end of life and if and when electric becomes more sustainable and viable for us.
Every new bus has a low floor, which means that Metro can achieve 100 per cent compliance with the Disability Discrimination Act and a more accessible transport option for Tasmanians. Passengers on our new buses will experience a more comfortable, accessible and environmentally friendly journey in a fully air-conditioned bus. They are also safer. They come fitted with ABS brakes, quieter engines, reversing camera, and electronic destination signs.
I am very proud that we are able to build this next generation of buses right here in Tasmania as a superb and enduring demonstration of Tasmanian manufacturing capability delivering a better customer experience for Metro passengers. The project reflects this Government's support for Tasmanian jobs and manufacturing and is further proof of the world-class capability we have in our state. That is good news and we are really pleased the public are telling us how much they enjoy the new buses, and when they embark they can do so feeling very proud that it is a Tasmanian-built product.
Ms OGILVIE - Thank you, minister, and Metro representatives for coming along. I have been running my eye across some of your numbers, which I like to do. I am excited to see a 92 per cent by local hit rate. Great job there.
One number I have not been able to find, although I understand it is a radius of 22 kilometres, is the limits of your transport network coming out of Hobart. I have been lobbied by friends in New Norfolk, Kingston, Huon and regional areas who say they are outside of a radius area by which the current system delivers Metro buses. There is a request that you consider expanding that to a 40 to 45-kilometre area. I could not find the figures and I am wondering if you could expand on that thinking. How far does your reach go? Is it an actual number, or is it just an urban legend?
Ms MORSE - I suggest that is an approximate number that will primarily relate there, rather than size of our network per se.
Ms OGILVIE - Okay, the reach?
Ms MORSE - Correct. These are matters for the DSG perhaps, rather than for Metro. Our networks operate with an urban and a non-urban fare structure. That distance sounds about right for the parameters of the urban fare setting in each of our networks. But if you think about the size of our Hobart network end to end, it is certainly longer than 22 kilometres. As you have rightly pointed out, we are one of 158 contract holders across the state so there are other operators who deliver services in locations like New Norfolk.
Mr GARDNER - If I may add to that, the minister referred earlier to our investment in integrated ticketing. A key element of that is to remove the barriers between transition from different operators. At the moment, if we are to take over those areas, we displace other local companies working in those areas. They provide services but from a customer perspective, you want to be able to get on one bus and transition to another with no disruption, no different ticketing.
Ms OGILVIE - Bus stops seems to be of particular concern, when there are non-Metro bus stops therefore there are no bus stop shelters.
Mr GARDNER - From our perspective, we work within our space. Bus stop infrastructure, rests largely with the road owners, whether it is a local government road or a state government-owned road, then they have responsibility for bus stops on those roads.
Ms DOW - Minister, the employment profile of Metro shows your workforce is ageing and that you have significantly fewer numbers of women than men. There are a high percentage of employees who have had short-term employment with Metro. What do you attribute this short term employment to? I would like to understand better how new employees are supported by Metro and some of the current recruitment initiatives you have in place.
Mr FERGUSON - I will invite the Chair and the CEO to add to that, but I can tell you that my advice is that the split by sex for male/female staff - I do not have that broken down by occupation group, perhaps my colleagues will - but male is 78.2 per cent and female 21.8 per cent, which I am advised is higher than it has been in the past, however there is always room for improvement, isn't there?
Ms DOW - There is.
Mr GARDNER - It is very good question. I will start by saying that we are not alone in this space with large blue-collar workforces. Ageing and the diversity of workforce in this space is a national issue. You'll see in noting there are a number of employees that have a short-term employment duration, that relates to our efforts to actually attract new employees into the business and the operators into the business from a diverse range of backgrounds, be they female or from ethnic backgrounds.
I meet with all the trainee groups that come through. It has been very encouraging to see an increase in younger women in those groups. Notably, in addition to that, that ethnic diversity is expanding and growing enormously.
There are a lot of initiatives. We are very conscious of this as a strategic issue as an organisation. We are working very hard. First, our task has been to map the nature of the issue and then to work on initiatives to attract people. That relates to rosters and structures and how people, when they come in, are employed. That's an ongoing challenge for the organisation but one as a board that we're well aware of and is critically important to the future success of our business.
Ms DOW - The annual report states Metro missed its lost time injury frequency rate by more than a factor of 5. It almost doubled from 14.5 last year to 27.6 this financial year. Repetitive strain and back and neck troubles can be experienced from sitting for long periods of time. I'd like to understand better what are the main causes of the lost time injury frequency rate and what steps are being taken to address these. What's been the cost to the organisation and affected individuals?
Ms MORSE - You're right in saying that we didn't achieve our target, noting that our target is quite an ambitious goal. Ideally, we would like everybody to return home at the end of a working day with us in as good physical and emotional space as they started the day.
As you've rightly described, the nature of both our work and our workforce means that we are quite vulnerable in terms of muscular and skeletal strains. They're certainly the largest segment of injuries that are reported within our business. In terms of strategies that we are continuing to apply within the business, we are taking a very proactive approach to working with injured or concerned workers.
Ideally, working with people ahead of an injury being sustained. So, the earlier things are identified from an ergonomic perspective, the more proactively we are able to work with people. We've been very proactive again in upskilling our team in terms of the frontline managers and the support team who work with an injured or a concerned worker. We've had very proactive support from our provider partners, from our work cover insurer and our medical providers. We are obviously trying to lift the capability of our business to respond when a worker has a concern in these areas. Certainly, they are not the results that we're proud of. We would like to see that number head down in the opposite direction. We will be working very diligently towards seeing that occur.
Ms DOW - Are you seeing issues with mental health impacting more in your workforce?
Ms MORSE - We are. It sounds like an unusual thing to say but I think we almost feel like that's a good thing. If we go back to that profile of our workforce, it is a predominantly male and older workforce. Going back a few years, people just wouldn't talk to us about these issues, so the fact that we are able to have those conversations inside our business now is very positive. The fact that we can bring our EAP provider onto site and people will talk to them is a very positive sign for us. I realise everyone's concerned. We're concerned as a management team. Our board is concerned when those numbers don't appear to be heading in the right direction but I think there's a really positive story for us to be able to talk about in terms of our workforce's willingness to engage that mental health and wellbeing space.
Ms DOW - Metro has been locked in wage negotiations since January. Where are these negotiations presently at?
Mr GARDNER - We've had a very long year of wage negotiations. The organisation and the employees are very keen to get this resolved. I am very comfortable that all parties are at the table in absolute good faith with the intent of resolving this. We are hopeful that we will get this resolved very soon. We've made a lot of progress in recent months and with the goodwill of all parties to get there.
Ms DOW - What increase have you budgeted for in 2019-20 onwards?
Mr GARDNER - We haven't. For this year we currently run on the budgeted level we have. The current pay level is based on the agreement that we came in with is at 2 per cent as a base wage. We are yet to do the budget for next year.
Ms O'CONNOR - Minister, by not living in the south you might not get the same volume of the sort of correspondence that we do. Metro customers from time to time report to us that they will try to catch the bus at a particular time and location and the bus does not appear, or it appears 15 or 20 minutes late. It has been put to us that Metro needs to be more responsive to its customers through some sort of online interface or app. Does Metro Tasmania have any way or any plans to advise the public on service delays or cancellations? As you can imagine, Mr Gardner, it can really disrupt a person's day. It can affect their capacity to get to work or to pick the kids up or something like that.
Mr FERGUSON - The subject expert, Mr Gardner, and Ms Morse will answer this comprehensively. I comprehend the concern. I agree that it is annoying and frustrating, particularly if you are waiting for a bus and you may not be sure if it is on its way or if you have just missed it because were a minute late for the bus, but the bus might be five minutes late. I am doing a hypothetical exercise, which I would not normally do. In such circumstances it is a good idea for the technology to support real-time information about where is the next best opportunity to get on a bus to the intended destination. I want to affirm the notion. It is a great point and something I have discussed with the company. I invite you to respond further.
Mr GARDNER - Thanks, minister. There are a few elements to deal with. First, a bus not turning up. The number or percentage of dropped trips, which is the technical term, is incredibly low in relation to the overall provision of services. In fact, they would be less than -
Ms MORSE - Well under 1 per cent.
Mr GARDNER - We are talking a very small number of buses that do not turn up at all.
Second, we have a very active social media presence. If there are incidents in the network, there are things that are going on that are impacting our ability to get there that we know of, we are very active in pushing out messages through social media.
Third, where is my bus? This is the biggest piece because it plays most commonly. There is only so much we are in control of. The biggest impact on the reliability of our service relates to the road network and the level of traffic in which that bus runs. With the systems we have we are unable to provide that real-time data on where a bus is. However, the good news is that with the Government's investment with us in the procurement of an integrated ticketing system, so comes that capability. There is a Metro app and either through that or through some other related mechanism we will be able to tell people where their buses are. The biggest feedback from people is that they wait i
