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In short:
Premier Motor Service has reached a new agreement with the NSW government to keep bus subsidies on the NSW south and north coast.
The government faced a backlash after it was revealed some fares could jump from $2.50 to $65.
What's next?
South Coast MP Liza Butler says the government is investigating long-term solutions for regional travel.
Fears that bus commuters on the NSW north and south coasts would be hit with a 2,500 per cent fare increase have been allayed.
The bus company involved, Premier Motor Service, has confirmed it reached a new agreement with the NSW government overnight.
Earlier this week, its government contract expired that meant fares for concession card holders would jump from $2.50 to as much as $65 for a one-way trip.
Following a "storm" of talks and negotiations, Premier Motor Service chief executive John King said a new agreement had been reached, although details would not be released until later today.
"I will always go down fighting and when you get the local members and the government listening to you, it's a good news story," Mr King said.
The news came as a relief for Merimbula resident Sue Muffler, who used the bus service to commute from the far south coast to Bomaderry more than a dozen times.
"I was very concerned to see that change in price," she said.
The 75-year-old said the decision to keep the fares at $2.50 would be welcomed by the community.
"It takes the stress off them … now they should be able to go as freely as they wish as often as they wish," she said.
"I think it's fantastic news. I'm very pleased."
More than 28,000 passengers a year use the South Coast service and about 60 per cent are concession card holders.
Premier Motor Service was contracted to provide deregulated long-distance bus services from Bomaderry to Batemans Bay, Bega, and Eden on the south coast and Tweed Heads to Ballina and Lismore in the north.
In mid-2021 the provider signed a three-year extension on the concession arrangement with the former government.
When the company filed an invoice for June, it received a notice stating that funding had concluded on May 31.
"No further funding will be paid in relation to the Eden-Bomaderry and Lismore-Tweed Heads service,” the notice said.
At the time, Premier Motor Service said it was shocked and disappointed at the decision.
Labor 'inherited' problem
Member for South Coast Liza Butler said the situation was "deeply concerning".
She said the former government provided no option for extension or plan for the future of the scheme.
"The NSW government inherited a complex web of bespoke regional bus contracts from the former Liberal-National government,” she said in a statement.
After meeting with Minister for Regional Transport Jenny Aitchison on Thursday, Ms Butler said the government was investigating long-term solutions for regional people "to ensure affordable and accessible transport options … well into the future".
Members of the NSW opposition Natalie Ward and Dave Layzell said in a joint statement that "sustained pressure" had seen the government backflip on its "reckless" decision.
"Commonsense has prevailed, and our regional residents will finally get the support they need," the statement said.
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