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Bus owners, NTC on collision course over fare hike
The National Transport Commission (NTC) and the Lanka Private Bus Owners Association (LPBOA) are on a collision course over the latter’s decision to increase fares from September 1. The NTC on Friday vowed it would not allow an arbitrary fare hike as the Government had given a string of concessions to private bus owners.
But bus owners reacted angrily, saying the claims of concessions were not correct and in any case the relief offered to them did not help cover the losses. The LPBOA which was fighting a lone battle for the fare hike says its campaign got the support of another major bus owners union, the All Island Private Bus owners Federation (AIPBOF) which last month backed out from a strike organised by the LPBOA.
NTC Chairman Roshan Gunawardena told the Sunday Times that the bus owners were trying to increase the fares despite obtaining a series of concessions from the Government. Even on Friday, they were offered some relief. “We have already reduced a tax imposed on import of tyres and as a result the price of a tyre will be reduced by Rs. 4,000. In addition the log sheet and entry charges levied at the departure point and entry point every month has been reduced by 50 per cent,” he said.
However, the bus owners said the reduction of log sheet charge was not a major concession. The current log sheet charge of Rs. 550 for a normal and semi luxury bus has been reduced to Rs. 275 and the charge for luxury and super luxury buses from Rs. 600 to Rs. 300.
The entry fee for a normal or semi-luxury bus has been reduced from Rs. 350 to Rs. 175 while the fee for a luxury or super luxury bus has been reduced from Rs. 400 to Rs. 200.
Mr. Gunawardena said that in addition to these concessions, discussions were being held with Treasury officials to obtain for them leasing facilities at 9 per cent through a State bank to buy buses, instead of the 28 per cent which they now paid. The NTC chairman said the commission also had acted to crack down on those who extorted money from bus drivers.
“We were told that millions were being extorted from them. Following a directive from the President the police have stopped these cases. Even this is a saving to the bus owners,” Mr. Gunawardena said adding that “We will assure the commuters that there will be no increase.”
LPBOA President Gemunu Wijeratne told the Sunday Times that many of the concessions offered to them were empty words.
“We were given a series of promises that the prices of spare parts and tyres would be reduced and that we will be given relief. But little or nothing has been given to us,” he said.
‘We have been kept waiting. We cannot afford to run the buses at a loss any longer,” he said. Mr. Wijeratne said that in terms of the agreement that they had reached with the Government they were entitled to increase bus fares by 9.2 per cent.
“The NTC’s claim that we were not entitled increase fares is not correct. They cannot stop this fare hike,” he said. AIPBOF President Anjana Priyanjith said they were supporting the fare hike move. “This industry cannot be destroyed as there are about 300,000 persons depending on it,” he said.
At present, about 21,000 private buses operate in the country.
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