In a tight vote, 7-5, councillors supported spending on bus depots or electric vehicle assets as a "possible strategy" to keep the market for public transport contracts competitive as buses go electric.
Last week, councillors were told battery-electric buses could be used to reach the government’s 2035 "fleet decarbonisation" goals.
However, these buses would need "more depot space per bus, expensive charging equipment, access to high-capacity power supply, and may potentially involve an increased number of buses".
"This points to the need for bigger, centralised depots," a report by transport planner Jack Cowie said.
"At present, this means that operators have to invest significant capital into their operations.
"An operator who lacks the funds for such investment will be unable to compete for contracts, and an operator who is able to fund such investment could develop a dominant market position, threatening the competitiveness of future tendering."
Cr Elliot Weir said the support councillors were registering remained "high level".
"If it didn’t make sense in any given situation, we wouldn’t do it.
"But having that option would be something I would support."
Cr Alexa Forbes said she looked forward to seeing a business case and a fleshed-out strategy.
Several councillors said they were happy to note capital investment in electric bus depots was a possible strategy, but did not want the council to be seen to "support" it.
Among them was Cr Tim Mepham.
"I really don’t see the advantages in having huge investments in assets as a council like this," Cr Mepham said.
"But I think it’s worth a decent investigation."
Cr Bryan Scott said the council should stick to what it did best — policy.
"As a wise person once said to me, councils are not very good at owning infrastructure.
"So, why would we get involved in this?"
Transport staff will bring a draft procurement strategy to the council’s public and active transport committee in the new year.
How they voted
The Otago Regional Council supports capital investment in bus depot or vehicle assets as a possible strategy for ensuring best value for money and competitive markets for public transport contracts.
For: Crs Alexa Forbes, Lloyd McCall, Andrew Noone, Alan Somerville, Elliot Weir, Kate Wilson and Gretchen Robertson
Against: Crs Gary Kelliher, Michael Laws, Kevin Malcolm, Tim Mepham, and Bryan Scott.
