Friday, July 30, 2010

News Update LRTA head says fare hike to end ‘unfair’ subsidies

Regular commuters of the Light and Metro Rail Transit systems may not agree with the fare hike proposal, but an official on Friday said the move will relieve residents outside Metro Manila of the burden of paying taxes to subsidize the transportation service.

LRT Administration (LRTA) head Melquiades Robles said a fare increase is needed as the agency shifts to a "users-pay" policy.

"Kahit yung mga hindi gumagamit ng LRT, buong bansa nakikihati. Ang itatayo sanang school building sa Visayas at Mindanao magagamit dito. Kaya siguro i-adopt ang user-pay policy (Under the present setup, even those who do not use the LRT have to pay taxes to subsidize the fares. The taxes paid by non-users of the LRT could have gone to construction of school buildings in Visayas and Mindanao. So we have to adopt a user-pay policy)," he said in an interview on dzBB radio Friday.

"Kawawa ang kababayan natin, di sila makikinabang sa sistema pero nade-deprive (It is unfair to non-Metro Manila residents. They do not benefit from the the LRT, but they are deprived of basic services)," he said.

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Robles said the LRT's fares presently stand at P15 from Monumento (in Caloocan City) to Baclaran in southern Metro Manila.

He said the last time the LRT had a fare adjustment was seven years ago.

For now, he said they are still determining how much the fare hike the LRTA will seek.

"May pangangailangan i-adjust ang pasahe sa makatotohanang level (We need to adjust the fare to a realistic level)," he said.

On Thursday, Department of Transportation and Communications chief Jose de Jesus announced a looming fare hike in the MRT Line 3 along Epifanio de los Santos Avenue (EDSA), saying that the study on rates adjustments will be finished by August. [see: MRT fare hike looms — DOTC]

MRT3 services some 800,000 commuters in Metro Manila.

P3 to 4 fare hike

Meanwhile, some passengers of the MRT said they were amenable to a fare increase of up to P4, but not P5 and up, according to a report by dzBB's Cecilia Villarosa.

"Kung P4 or P3 okay lang pero kung P5 pataas sobra na yan ... Kung para sa modernization siguro pwede (If the fare hike is P4 or P3, it will be okay but if it is P5 or up, I will not be in favor.... If the fare hike will go to modernization efforts, that's fine with me)," said a male passenger of the MRT3.

Subsidy stays

In the same dzBB interview Friday morning, Robles clarified the government will still subsidize the LRT's fares. "Subsidy will not be totally eliminated, mababawasan lang (it will be lessened)," he said.

He said that with the added income from the reduced subsidy, the LRTA can acquire more facilities and improve its services.

At present, he said the fares from LRT users go mainly to operation and maintenance.

Robles also belied speculations the LRT fare may cost P55, which he said is the break-even cost for this year.

"Di siguro, masyado yan. Baka yan ang break-even cost for the year. Sa amin pag-aaralan ang detalye kung magkano (P55 is too much. That is just the break-even for the year)," he said.

"The fare will still be subsidized at a certain point. We cannot have fares at P55 to 60," he added.

Robles said that in 2009 alone, the government spent P3 billion for infrastructure.

It is now planning to buy equipment like rails, build civil structures, and improve its stations.

Security equipment

Robles also said the LRTA is investing in new security equipment such as X-ray machines and walk-through metal detectors.

He said the walk-through metal detectors, already installed in the LRT's Monumento and Santolan stations, allowed a smoother flow of passengers.

"Bawa't isa P11 million, so P22 million na yan (Each walk-through metal detector costs P11 million so we already spent P22 million for the two detectors)," he said.

"Secure ang sistema, baka malusutan ng terorista. At the same time ‘di tayo maaabala (The system is secure from possible terrorist attacks, and provides convenience to LRT passengers)," he added. — LBG,