Demography and free public transport

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Presentation transcript:

Demography and free public transport Taavi Aas Deputy Mayor of Tallinn

Basics of Tallinn FPT Population 432 447 (as 01.09.2014) 2012 PT budget – 53 million € Total tickets revenue - 17 Mio € 5 Mio € from non-Tallinners Free PT for Tallinners costs 12 Mio € annually FPT started in 01.01.2013

Why we did it? Social aspects: guaranteeing mobility for unemployed and low income residents. Economic aspects: increasing labour mobility in the city limits; stimulating consumers activity; savings from public transport are spent for local goods and services Green aspects: modal shift from cars to PT, cleaner air, less noise, more urban space Fiscal aspects: strong motivation to register place of residence, thus increasing personal income tax

Fiscal demography Registered population grew since April 2012 (after FPT referendum) by <16 000 persons Every 1000 residents bring to city budget ca 1 million euros annually by personal income tax FPT cost has been covered with fine surplus

Earlier experience Tallinn observed comparable growth in 2003 while started discount for residents in public transport (population increased by 14 416 persons in one year) Triggered by change of national tax system which made municipal budgets directly dependent on the residents income. Warsaw and Riga started public transport discounts for residents in 2013

Combined investments pay back Combined investments into public services pay back well increasing the number of residents/taxpayers: municipal housing program social jobs new kindergartens sports facilities etc

Deserved fruit of municipal policy Tallinn is absorbing the strong exodus from other parts of Estonia. But losing population to its „golden circle“ and suffering also from emigration to the North. Tallinn is however the only city in Estonia still growing That growth is not inherited nor predestined but is a fruit of responsible municipal policy

Sharing the best practice Tallinn initiated the European Network of Free Public Transport. Since 2012 Tallinn hosted 3 international FPT conferences. In November 6.-8. FPT conference takes place in Zory, Poland – the country which experiences now the boom of free public transport.

Welcome to the world of free public transport!