Opposition calls for comprehensive policy on transport financing amid fare hike

The Opposition People's National Party (PNP) is again encouraging the government to reconsider its proposals for a more affordable and planned approach in deciding fare increases for taxis and rural bus operators.

The government has approved a 35% hike in bus and taxi fares to be implemented in two stages, Transport Minister Daryl Vaz announced in Parliament on Tuesday.

A 19% increase will take effect on Sunday, October 15, followed by 16% in April 2024.

Opposition Spokesman on Transport Mikael Phillips is arguing that given the inflationary impact the 35% fare hike will have on commuters, the new fare should not have been implemented without a comprehensive impact study.

Phillips, in a statement today, said that for more than two years, proposals were made to successive Ministers which would help to stabilise fares, including a recommendation to remove the fare-setting mechanism from the political directorate and make it the responsibility of the Office of Utilities Regulations (OUR).

Instead, the transport minister chose to use a sector committee that did not have the benefit of any affordability study, or direct commuter input, said Phillips.

He is charging that the two-step approach is an admission that the new fare rates may not be affordable as parents will face three different fare levels to send their children to school in one academic year and workers will also pay three different fares to get to work within one pay cycle.

Phillips said the overall 35% increase will greatly impact minimum wage earners. 

The opposition transport spokesperson said without a comprehensive policy approach to the transport sector, including financing, lower fuel cost, and funds for re-fleeting obsolete rural buses, it will not be long before operators are back to secure higher fares to meet the spiralling costs of inputs for public transportation.

Additionally, the spokesperson strongly recommended that the government should consider capping the ad valorem fuel taxes at US$67.50 per barrel, as the current rate stands at US$85.00.

“Since the government is firm on implementing the new fare on Sunday, October 15, there is likely to be chaos as the Transport Authority has not gazetted a new fare table up to this morning. 

“Apparently it is expected that the operators will calculate phase one of 19% on existing fares, but that is surely a recipe for disaster due to the hundreds of origins and destinations traversed by commuters. The government has a duty to calculate and publish a new fare order and table,” he said.

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