But while the proposal is set to be considered by parliament’s economy and infrastructure committee next year, RACV’s Stuart Outhred is not convinced the benefits of a free tram zone outweigh the costs. He warns that careful analysis of the existing free tram zone is essential before extending it.

“Where’s the analysis that this idea makes sense and stacks up in its current form, let alone proposing to extend it? Our tram system will need to do a lot more work in the coming years; Melbourne is booming and getting the transport mix right is critical.”

He says the existing free zone is very likely causing the extreme overcrowding that many Melburnians and visitors experience on city trams.

“This is a fairly simple supply-and-demand issue,” he says. “Free trams mean fuller trams, more congestion, longer waits. That might be causing more harm than good.

“The scale of activity in central Melbourne with nearly a million people in the city every day means we need to think really carefully about how the transport system functions,” he says. “Making a scarce resource free seems like a very fragile policy.”

Stuart says the estimated $10 to $13 million the free tram zone costs in foregone revenue each year could be better spent on improving public transport.

Supporters of the free tram zone, which was introduced in 2015, claim it promotes tourism and greater use of public transport, and helps gets cars off the road. They want it extended to include tourist hotspots like the MCG, National Gallery of Victoria, Shrine of Remembrance and Melbourne Zoo as well as Parkville’s Royal Children’s Hospital.