Victorian Auditor-General's Office

Appendix A. Audit Act 1994 section 16—submissions and comments

In accordance with section 16(3) of the Audit Act 1994 a copy of this report was provided to the Department of Transport, Public Transport Victoria and V/Line with a request for submissions or comments.

The submission and comments provided are not subject to audit nor the evidentiary standards required to reach an audit conclusion. Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

Responses were received as follows:

3 Oversight lessons

At a glance

Background

We examined the reasons why fare evasion escalated over the past three years and distilled the lessons for effective future oversight.

Conclusion

The Department of Transport (the department) failed in its oversight role because it was too slow to react to lead indicators showing that fare evasion was escalating significantly after 2009.

1 Background

1.1 Introduction

Public transport is important for the efficient movement of people and goods around Victoria and plays a critical role in relieving urban traffic congestion. Services are heavily subsidised and the cost to government has risen as more services are provided. Effectively protecting fare revenue lessens the burden on taxpayers and allows for the expected expansion of services to meet future growth.

Audit summary

Background

Public transport is important for the efficient movement of people and goods around Victoria and plays a critical role in relieving urban traffic congestion. Services are heavily subsidised and the cost to government has risen as more services are provided. In 2010–11 the cost of operating public transport services was $2.2 billion, with 30 per cent coming from fares and 70 per cent from government subsidy.

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