The Dunedin City Council-owned company Citibus Ltd was sold for "in excess of $6 million but the company took a $2.6 million loss on the sale, it has been revealed.
A city the size of Dunedin needs reasonable public transport.
Though substantial subsidies are required to maintain bus
services, it is a cost which must be borne.
Citibus drivers
reassured as recently as two days ago they were not facing
redundancy if the company is sold have been asked to consider
pay cuts, reduced hours and significant roster changes, a
Dunedin trade union leader says.
Dunedin Mayor Dave Cull is defending attempts to sell
struggling Dunedin City Council-owned bus company Citibus,
despite criticism the move will rob ratepayers of a public
asset.
The sale of underperforming Dunedin City Council company
Citibus Ltd - which has lost $800,000 in the past two years -
has been revealed as the topic of last week's controversial
non-public council meeting.
Attemps to sell the struggling Dunedin City Council-owned
company Citibus have finally been confirmed, and a condition
of any sale could secure the future of drivers.
