RTBU welcomes calls to put Newcastle buses back in public hands

Rail, Tram and Bus Union NSW Media Release 11th March 2026

Putting Newcastle’s bus services back in public hands would be a big step towards finally providing local commuters and drivers with the quality bus service they deserve, the Rail, Tram and Bus Union (RTBU) NSW says.

The call follows reports that the NSW Government is actively investigating the possibility of returning Newcastle’s buses to public ownership once Keolis’ contract ends at the end of 2027.

RTBU NSW Tram and Bus Division President, Peter Grech, said after years of failed privatisation, a return to public hands would come as welcome relief to commuters and bus drivers in the region.

“The fact that the NSW Government has confirmed it is currently investigating what it would take to return Newcastle’s buses to public hands is a very positive sign,” Mr Grech said.

“One MP described the privatisation of our buses as an abject failure – and we couldn’t agree more.

“Commuters and bus drivers have borne the brunt of the failed privatisation experiment in Newcastle. It’s time to start rebuilding a bus service the community can rely on.

“The NSW Government has a chance to turn our bus services around, and it’s heartening to see that it’s being actively investigated.”

Newcastle’s privatised bus network is delivering worse services for commuters while costing taxpayers significantly more, a new report has found.

The report reveals Newcastle Transport ranked 8th out of 9 operators in performance across outer metropolitan NSW, while the value of the contract has ballooned from around $450 million to more than $600 million.

The new McKell Institute report, Private Gain, Public Pain, commissioned by the Rail, Tram and Bus Union (RTBU) NSW, finds the privatisation experiment in Newcastle has failed and calls for the network to be brought back into public hands when the current contract expires in 2027.

RTBU NSW Tram and Bus Division President Peter Grech said the findings confirm what commuters and drivers in Newcastle have been saying for years.

“Privatisation was sold as a way to improve services. Instead, commuters are getting cancellations, delays and chaos,” Mr Grech said.

“Taxpayers are paying more while private operators chase profit.”

Mr Grech said the region – which is among the fastest growing in the nation – needs a long term vision for an integrated public transport network.

“The Hunter is growing rapidly and public transport needs to grow with it. That requires long term strategic planning, not short term contracts designed around private profit.

“A growing region like the Hunter needs a coordinated public transport system that works together. Buses, trains and light rail should be planned as one network with the public interest at its centre.”

The report also highlights serious safety concerns among bus drivers, with:

• 67 per cent saying unrealistic timetables push them to drive unsafely
• 74 per cent saying staff shortages are putting pressure on drivers and passengers

Mr Grech said the pressure on drivers was putting the entire system at risk.

“When drivers are forced to rush routes, skip breaks or deal with abuse from passengers, safety suffers. That’s the real cost of privatisation,” Mr Grech said.

“Privatisation was supposed to save money. Instead, taxpayers are paying more for worse services.

“With the contract due to expire in 2027, there is a real opportunity for the NSW Government to properly plan the future of public transport in the Hunter. The first step should be returning the network to public operation.

“Newcastle’s buses should work for commuters, not private shareholders.

“The government has a chance to fix this mess and put the public back in control of public transport.”