Friday, May 10, 2024

EDITORIAL: FTC best to make decision on fare hike

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SELDOM IS THE privately-owned public transport system not in the news. Often it is for the wrong reasons, ranging from their continuous infractions of the law to blatant disregard for doing what is right. They do not always endear themselves to a public which relies heavily on them and the essential service they provide.

The grumblings from the owners of these vehicles in recent days about the need for a hike in fares and the ability to access certain concessions may have been reasonable requests, but were rejected for varied reasons. Given the prevailing economic difficulties facing the country, these appeals would not have gained much sympathy.

This discordant group of business people must ensure that public service vehicle (PSV) operations meet all acceptable standards. This means they must see to it that employees adhere to all the traffic laws and conform to society’s mores. The list of complaints against them is long and known.

The operators must accept that in business, they take risks which can succeed or fail. But, if the PSV subsector was loss-making or just breaking even, most of those in it would have closed shop.

These business people are not plying routes just because they are public-spirited. It is done because running route taxis offers an effective return on investment while satisfying an important economic need. This, however, does not mean that they may not have a legitimate case for requesting an increase in bus fares to meet their operational expenses and to continue making a profit.

That the owners of PSVs must turn to a minister of transport to give permission for such an increase is wrong. Neither the minister nor his ministry is competently qualified to come to a determination in this situation. Theirs would be a judgement call. The process of rate-fixing requires specialised skills and a review of the financial operations of this sector which is best suited for the Fair Trading Commission (FTC). The same process must also be adopted in relation to any increase of fares granted the state-owned Transport Board.

The days of either a minister of finance during a Budget or of the minister of transport making such pronouncements should be a thing of the past and never to be revisited. The decisions on a rate increase should only come after an application, a public hearing and the full analysis of all the details by the FTC to determine whether an increase or decrease is justified, and indeed by what percentage.

As Government moves to shift an increasing role for public transportation on to the private sector, it is going to be important that the correct regulatory systems be put in place. PSV owners need to let their voices be heard on this matter which requires full transparency and accountability.

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