Dedicated bus lanes will be introduced in Adelaide's streets as the State Government attempts to crackdown on late running services.

Cars will be reduced to a single lane in Currie and Grenfell Streets between 7am to 7pm (ACST) from Monday to Friday.

The same conditions will apply to East Terrace between North Terrace and Grenfell Street.

Turning options will also be restricted under the trial changes, which will be introduced from the beginning of July.

While the State Government says the measure will cut three minutes off bus trips, the RAA says it may lead to increased traffic congestion.

RAA spokeswoman Penny Gale says the plan is unlikely to encourage more people to catch buses.

"We're a bit surprised that the State Government's gone it alone on this one. We're concerned that not enough thought has been gone to where will the cars go," she said.

"We're not anti-public transport but you really have to look at the big picture here and I think from what we're seeing here today that hasn't yet been provided."

'Benefit all'

Premier Jay Weatherill says he does not believe the trial will cause delays and extra frustration for peak-hour drivers.

"As the buses run on time, as we get more reliability in the bus service, we expect that that will attract more people on to public transport. That should ease the congestion and make it easier for other road users including the cars to use this road more effectively," he said.

"As more people get on to the buses that will ensure the road is freer for other users."

Transport Services Minister Chloe Fox also downplayed the prospect of traffic jams as a result of the changes.

"We're not just helping buses here, we're also helping motorists because we are creating a lane for them that is dedicated to motorists only so hopefully that will help us move through the city," she said.

The announcement is in response to a backlash from commuter and a rise in complaints about late running services.

Earlier this month, the Government slapped fines of a combined $218,000 on three bus companies.

Mr Weatherill says the necessary roadworks will cost $200,000.

"There's some median strip work that needs to be done, a little bit of painting that needs to be done and some signage. It's about equivalent to the penalties we're recovering from the bus companies so it should be revenue neutral," he said.

Taxis will also be allowed to use the bus lanes.

The SA Government will introduce bus lanes in Adelaide's CBD with lanes set aside in Currie and Grenfell Streets ( SA Government )

'Fairer fares'

The announcement follows calls by a welfare group to make public transport free for students, pensioners and people with health care cards.

The latest cost of living report by the South Australian Council of Social Services focuses on transport.

The report has found transport is the third highest household cost and increasing prices are causing hardship for some families.

The council's executive director, Ross Womersley, believes free travel should be introduced during off-peak periods.

"The infrastructure of public transport continues to run through those times so it shouldn't be that expensive to make the transport that's already going to and fro, public transport that's going to and fro, accessible to everybody without extra cost," he said.

But Chloe Fox says ticket prices are already heavily subsidised.

"One of the most important things for us to bear in mind is that every single ticket that is sold is subsidised by 75 per cent so the Government is actually paying 75 per cent of the cost of your ticket," she said.

Ms Fox also ruled out increases to a subsidy scheme to help people with disabilities pay their taxi fares.

"Obviously we can't afford to subsidise every single person's travel but we certainly do do our best. I've spoken to the Minister for Disabilities Family Services about this, Mr Ian Hunter, and he at this point in time is happy with that service that we are providing," she said.

Parking plan

As the Government tries to ease congestion, the Adelaide City Council is trying to increase the level of traffic.

The introduction of bus lanes will coincide with a plan to attract more shoppers to nearby Rundle Mall.

The council will cut rates by half at its U-Parks in Rundle and Wyatt Streets and in Gawler Place.

Over a three-month period starting in July it will cost $6 to park for the first three hours.

Councillor Houssam Abiad says the measure does not contradict a long-term goal to reduce car parking in the city centre.

"For the time being, and for a long time forward, we have to still focus on a parking strategy for people to come and use the city. This is about coming to town, spending three hours, and then having to leave if you choose to," he said.

He says city retailers will benefit from the decision.

"I think by being competitive in the city we'll be able to attract more business, specifically to Rundle Mall."

The trial will see the end of a flat $5 fee on Sundays.

