Dr. Matthias Stoffregen Tariff, Sales and Marketing VBB Verkehrsverbund Berlin-Brandenburg GmbH

1. Is Free Public Transport possible?Experiences and Debates from Berlin, Brandenburg and the Rest of Germany Dr. Matthias Stoffregen Tariff, Sales and Marketing VBB Verkehrsverbund Berlin-Brandenburg GmbH Tallinn, October 26, 2012

2. Agenda Berlin-Brandenburg in Germany: Structures and Financial Resources Experiences from Brandenburg Interlude: “Free Public Transport for Pupils is Possible” Recent Political Debates (1): The “pirates” Recent Political Debates (2): Participatory Budgets Recent Political Debates (3): Congestion Charge and Free Public Transport Reflections

3. Germany Surface: 358.000 km² Inhabitants: 82 millions 16 Federal States 1. VBB: In the heart of Europe Berlin and Brandenburg

4. 1. A big region Berlin: Surface: 891 km² 3,46 Mio. Inhabitants 12 Administrative districts Brandenburg: Surface: 29 476 km² 2,5 Mio. Inhabitants 14 Counties, 4 County-level cities 419 Cities and communities VBB: Surface: 30 367 km² 5,96 Mio. Inhabitants Two states

5. 1. Significant Disparities Highly populated metropolis Berlin Inhabitants: 3.46 million Population density: 3 884 inhabitants/km2 Thinly populated area countyPrignitz Inhabitants: 82 023 Population density: 39 inhabitants/km2

6. 1. Passengers and Revenues, 1999-2011 Ridership: since 2000: + 20.7% passengers 2010/2011: + 1.2% passengers Farerevenue: since 2000: + 50.6 % 2010/2011: + 2.8% 2011: 3.51 Millionen passengers/day

7. 7 1. Wherethe Money Comes From appr. 2,3 Billion € Sources: VBB, federalstates Berlin and Brandenburg 2010

8. 1. Where Does The Money Go To? • i.a. to an expensive sales infrastructure… • between 2% (subscribers) and up to 20% of the ticket price • very few reliable figures!

9. 2. Experiencesfrom Brandenburg: Lübben (Spreewald) • 1996/7: disputebetweencityanddistricton thefundingofthecitybusline • 1998: introductionoffree PT in Lübben‘scitybuses, financedbythetown • numberofpassengers +400% • 2002: abolitionoffree PT • Still reducedfare, comparedtoregular VBB-Tickets Inhabitants: 14.000

10. 2. Experiencesfrom Brandenburg: Templin (Uckermark) • picturesquehistoricalcitycentre • 1997: introductionoffree PT in Templin‘scitybuses, in thebeginnigsuccessful (numberofpassengers +1300%) • costsofabout 100 T €, coveredbythemunicipalbudget (purchaseoftickets) • trafficofferedhadtobeincreased • sinceseveralyearsfree PT onlyfortouristswhowithovernightstaywhopayvisitor‘stax, orforcitizenswhobuy a years‘ ticket for ~50 Euros • todayonlyonecitybuslineleft Inhabitants: 16.000, territorially 8th largestcity in Germany (!)

11. 3. „Free Public Transport forPupilsIsPossible“ Especially heated debates on PT for pupils Popular petition in 2008 in the federal state of Brandenburg Vs the Brandenburg school law of 2004 which introduced parents‘ contributions for their childrens‘ PT tickets did not reach referendum stage because most Brandenburg districts cut the parents‘ contributions to zero Larger cities in Brandenburg do not subsidize PT for pupils Only exception Potsdam, discount ~ 10%, only for subscribers

12. 4. Recent political debates (1): The “Pirates” • new political party in Germany • political core issues: internet, transparency, citizen’s rights, “liquid democracy” • Unexpected electoral successes in several elections in the federal states in 2011/12: Berlin (15%!), Schleswig-Holstein, Northrhine-Westphalia,Saar • Demand for “ticketless PT” (in contrast to “free PT”) – at least as a pilot project • Thoughts about other financial resourcessuch as state taxes, based on income • “We are paying a lot of subsidies for PTanyway!” • estimated contribution of about 20-30 Eurosper person and month

13. 5. Recent Political Debates: Participatory Budgets • Initiatives in other cities: • Aschaffenburg • Trier (for single weekdays, eg. Saturdays) • Stuttgart • …but no positive decisions yet! • Part of the annual (or biennial) budget debates in several German cities • Demands in Potsdam (Brandenburg’s capital, highly fragmented party system, 158.000 inhabitants) for free PT • lengthy debate with a lot of myths and half-knowledge • in 2009 it became the 4th mostvoted item to be debated in thecommunal parlament, rejected • in 2012 new initiative, no decision yet

14. 6. Recent Political Debates (3): City Access Charge • Tübingen: • 89.000 Inhabitants • 27.000 university students • 22.000 commuters fromsurrounding areas • Modal split: about 25% forcars, bikes, PT and pedestrians each • Pilot project 2009: free PT on Saturdays (“Tübingenmachtblau!”)

15. 6. Recent Political Debates (3): City Access Charge • Mayor: Boris Palmer (Green Party) • Clear majority in the city council favouring free PT • How to make it possible? • Idea: Congestion charge, untilnow legally impossible • Latest update (October 19): Palmer switches from congestion charge tocommunity tax

16. 7. Reflections • “Was nichtskostet, istauchnichtswert.” • Customers should not underestimate the worth of a functioning PT system • Without fare revenues, it becomes even more difficult to steer the development of PT • loss of entrepreneurial spirit, mere “administration” of PT • bigger dependency on budget cuts • compared to a PT that manages to generate its own costs to a larger degree

17. 7. Reflections • often a highly ideological debate; some models are referred to as “success stories” which they are definitely not. • what is needed is a fact-based, sound approach without prejudices! • voluntarism does not help! • need for an overall concept that takes into account not only PT and its finances but also • other forms of traffic • issues of city development • sustainability • ability to steer quality, quantity, safety, security of PT • legal and constitutional (!) issues

18. 18 Thankyou!Everythingisreachable! Dr. Matthias Stoffregen Department Head, Tariff, Salesand MarketingTelefon: +49 30 25 414 340 Telefax: + 49 30 25 414 315 Hardenbergplatz 2 stoffregen@VBB.de D - 10623 Berlin VBB.de