Free Transport: Blackmail Operators

11 years, 3 months ago - 30 August 2013, Le Matinal

The main bus operators threaten the country no longer free transport students and elderly people in the future. They want the government to revise upward the subsidy is granted. In a letter dated 20 August 2013 addressed to the Government and entitled 'Financial Situation in the Bus Industry', operators claim that the grant should be revised upward by at least 12%.

The Association of Bus Operators indicates that its members have written to the Ministry of Public Infrastructure, May 27 , indicating that the number of elderly has increased significantly since 2005. "We pointed out clearly that the number of students and old aged pensioners has increased drastically since the introduction of free travel in 2005," the association wrote . They added that the government has recently agreed to grant a wage increase of about 19% of workers in this industry , which represents an additional financial burden for operators.
Operators want to increase the subsidy or government raises the subsidy to operators or elderly people and students remain on the sidelines. This is just the summary message to the authorities by the operators grouped in the Association of Bus Operators . They cite to support their claim , the difficult financial situation in which they find themselves since the government has granted a wage increase of 19% to transport employees .
In his letter dated August 20 , the Association of Bus Operators emphasized : "To effect payment of this increase in salary, Government had only two options - either to give a financial support to Bus Operators or increase tariff of fares. Governement opted for the latter" The association said that since August 1 , operators must pay an additional fee to cover the wage increase . "Hence, from 1st August 2013 we have to disburse a 15 % increase in salary when increase in fares took effect as from 12 August 2013. Furthermore, this increase is only generating 8 % increase in revenue, thus a shortfall of 4 %" say the operators in their letter.
The Association of Bus Operators maintains that the government subsidy should be revised upward to compensate for this shortfall. "In the meantime, as has always been the case, Free Travel should reflect 12 % increase and this as from 1st August 2013, in order that we may catch up with the loss in Revenue being accused from the 1st August till 11 August 2013, let alone the 4% shortfall. This is to inform you, honourable Minister, with all due respect we have for you and Government at large, that we will have no other alternative than to stop carrying students and old aged pensioners freely if free travel is not revised" supports the Association of Bus Operators in the letter.
In a statement to Le Matinal Sunday Jeewoonarain Sunil , secretary of Bus Owners Cooperatives , grouping the individual bus operators , has revealed that he has also signed the letter.