FARE SUBSIDY | Transport group seeks extra funding to subsidize drivers in ‘unprofitable’ routes

April 14, 2023 , 11:10 AM

(April 14, 2023) – A transportation group has supported the government’s plan to subsidize the operation of unprofitable routes but it continued to grapple for funds to expand the program.

The Department of Transportation (DOTr)’s plan to subsidize these routes must benefit as many drivers and operators as possible, Manibela chairperson Mar Valbuena said.

He also agreed with Secretary Jaime Bautista’s call to balance the interests of commuters and the transportation sector.

“‘Yung mga ‘di profitable o viable [na ruta], mga hirap talaga sa biyahe, dapat tulungan,” said Valbuena on One News’ The Big Story. “Pero hindi siya dapat 50-50. For example, 100 units sa isang ruta, dapat lahat maka-avail. Kung may maiiwan, sino pa sasakay sa kanya kung ‘di siya magkakaroon ng subsidy?”

Transport sector workers were among the hardest hit by the pandemic. Over the past two years, the government implemented free rides to ease the burden of commuters as the economy slowly reopened.

Bautista has announced plans to provide subsidies to drivers of public utility jeepneys (PUJs) plying unprofitable routes instead of providing discounts, allotting P1.2 billion for this purpose. He said they are still studying how the funds will be disbursed to maximize the allocated government funding.

“That is not a big amount, considering the number of routes, so we are evaluating each one to maximize the benefit of the subsidy,” Bautista said in a chance interview on the sidelines of an event of the Management Association of the Philippines in Taguig City on Thursday. “We will subsidize drivers for them to continue their operations.”

To recall, the Land Transportation Franchising and Regulatory Board (LTFRB) had planned to approve fare discounts for some jeepney routes in Metro Manila starting this month. Its allocation was supposed to come from the P1.285 billion for service contracting program and P875 million unprogrammed funds under the national budget.

Bautista said it’s unlikely for the government to implement fare discounts for passengers and subsidies for drivers at the same time because of limited funds. For now, he said the LTFRB is in the process of identifying the routes that will be covered by the subsidy which they plan to implement by the end of May or early June.

“It is being reviewed so that those who will benefit are the ones who really need it,” said Bautista.

For his part, Valbuena said they are looking forward to the approval of P2.2 billion worth of additional funds, although it’s unclear where this amount will come from.

“Sabi natin, kulang na kulang ‘yan at siguradong pili lang ang mga ruta na mabibigyan nito at magkakaroon lang ng inggitan. So, sinasabi natin, sana madagdagan ‘yun para lahat sa transport sector matulungan at ‘yung mga mananakay ay maramdaman ito,” said Valbuena.

(MM)

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