PALACE: FARE HIKES WON'T CAUSE UNREST / NOY ASKED TO SUSPEND FARE HIKE
MANILA, SEPTEMBER 13, 2011 (STAR) Malacañang defended yesterday the planned increase in Metro Rail Transit (MRT) and Light Rail Transit (LRT) fares, saying neither this nor the rise in oil prices and toll fees would cause social unrest.
Deputy presidential spokesperson Abigail Valte said in a press briefing at Malacañang that the impact of value added tax (VAT) on toll would be minimal on goods and passenger fares while the MRT and LRT services would be improved with higher fares.
She also downplayed warnings that possible social unrest in the country might occur because of the impending increases.
"Well, we hope that it will not happen primarily (because) of two things: As to the VAT on toll, we had just spoken to (Bureau of Internal Revenue) Commissioner Kim Henares and the BIR and the DTI (Department of Trade and Industry) have made computations as to the impact of the VAT on goods. If I may cite an example, Commissioner Henares computed that for a supplier of eggs that will ply any of the tollways that will be charging the VAT, the cost to one piece, to one egg, will be an additional .0042 centavos. So the impact is very minimal when it comes to the cost of goods," Valte said.
"She also has a similar computation for the impact of the imposition of VAT on passengers on passenger buses," she said.
The second point, Valte noted, was that there would be a corresponding improvement in the services of the trains once higher fares were collected.
"It will not be an unnecessary burden on the passengers. We saw it on NLEX (North Luzon Expressway), there were objections when toll fees were raised but when they saw that services were better despite the higher (fees), all these apprehensions were gone. We intend to also improve the services in MRT and LRT," Valte said.
Valte said the government was sensitive to the needs of the public, the reason why the increases would not be implemented all at once.
She reiterated that the VAT on toll was a Supreme Court decision that must be followed.
Valte said the government was willing to show computations to give a clearer picture to the people.
Rollback
Meanwhile, Chevron Philippines, Pilipinas Shell Petroleum Corp., Phoenix Petroleum Philippines Inc., Eastern Petroleum Corp., and Seaoil Philippines Inc. reduced the prices of their petroleum prices last night.
The price of premium gasoline was cut by P0.35 per liter, regular gasoline and diesel by P0.20 per liter, and P0.50 per liter for kerosene products, based on the price scheme reduction followed by Chevron, Phoenix and Seaoil.
However, Eastern Petroleum reduced premium and regular gasoline prices by P0.50 per liter while diesel and kerosene were reduced by P0.25.
Pilipinas Shell reduced unleaded premium gasoline prices by P0.50 per liter, regular gasoline and diesel by P0.20 per liter, and kerosene by P0.50 per liter.
Last week, oil players jacked up prices by an average P1.60 per liter for premium gasoline, and by an average P0.95 per liter for diesel and regular gasoline.
Continue subsidy
Amid planned fare increases, Sen. Francis Escudero joined yesterday the groundswell of support at the Senate to urge President Aquino and his economic advisers not to withdraw the P8-billion subsidy for the MRT-LRT.
"I am wondering with the Department of Transportation and Communications (DOTC) opted to implement their last option, which is the removal of the subsidies," Escudero said, referring to the proposal for the national government to scrap about P8 billion in subsidy to the MRT and LRT.
Escudero agreed with his colleagues that the least the government can do is not to impose new fare rates on MRT and LRT amid the rising prices of fuel and basic commodities.
He also disputed the argument that provinces were complaining about the subsidy, noting that provinces get bigger share in their respective internal revenue allotments. - With Christina Mendez, Ted Torres
FROM MALAYA
Bleeding hearts ask Aquino to suspend LRT, MRT fare hikes BY JP LOPEZ
SENATORS yesterday urged President Aquino to suspend the impending fare increases in the Light Rail and Metro Rail Transits.
"In the face of the rising cost of basic commodities and services by private companies, additional financial burden coming from the government is the least that the more than a million MRT and LRT daily commuters want and hope for," said Sen. Ramon Revilla Jr.
Revilla said the fare increases would result an increase of passengers in public utility buses and jeepneys that would in the end result in slow movement of the labor force.
"Ang kailangan natin ay maayos na serbisyo ng gobyerno, hindi mahal na serbisyo," he added.
At present, MRT/LRT commuters pay from P12-P15 with the remainder of the P55/passenger operating cost subsidized by the government.
The Light Rail Transit Authority (LRTA) board last October approved the fare increase of between P11- P29 for stored value ticket and P15 to P30 for single journey tickets for LRT Line 1 (Baclaran to Roosevelt) and P11-P24 and P15 to P25 for stored value and single journey tickets respectively for LRT Line 2 (Recto to Santolan).
The LRTA board however deferred the implementation of the fare adjustment for further consultation with the Land Transportation Franchising and Regulatory Board.
Sen. Ralph Recto said the traffic situation would worsen particularly in Edsa as commuters would opt to ride PUBs for their short trips to save on fare money.
Rexto said raising fares in MRT-LRT during these hard times would be squeezing dry the middle class who are the "pistons" of the economy.
"We are squeezing the people in Metro Manila -- the middle class, particularly the professionals, office workers and students," he said.
He said the timing is off since inflation or cost of goods like petroleum and electricity is relatively high while the economy hardly grew in the second quarter.
"I'm not against raising the fares but there should be an improvement first in the service like additional rolling stocks or coaches. Caving-in to a fare increase now would be tantamount to rewarding inefficiency," he said.
Revilla said that while LRT and MRT cater to most Metro Manila residents, "we must also take into account that not all regular passengers of MRT and LRT are permanent residents of NCR only."
"There are countless ordinary workers and employees from various regions who are working in Metro Manila to support their families in the provinces, even small businessmen."
"The MRT and LRT operation does not only benefit one particular region. It does not serve the people of Metro Manila alone," he said.
"People in the provinces are not actually complaining nor up in arms over their supposed subsidy of MRT-LRT riders in Metro Manila, because it's not true," he said.
Recto said it's the other way around since most of the taxes raised by the government are contributed by folks and industries in Metro Manila, which are then plowed back into the poor provinces.
He said taxes paid by Metro Manila residents are returned to them in the form of fare subsidies that run up to P6 billion to P8 billion a year.
"No one in the province like in Batanes, Batangas or in Capiz, Tarlac and even in Tawi-tawi is subsidizing a rider in Metro Manila. In fact, it's Metro Manila that is subsidizing the P39.4-billion CCT (conditional cash transfer) program for 2012 that would benefit most of the provinces," Recto said.
The 80-member League of Provinces of the Philippines (LPP), in a statement, said the LRT-MRT fare hike is long overdue.
"It is about high time that the national government take cognizance of the plight of our countrymen outside of Metro Manila," LPP president and Mindoro Oriental Gov. Alfonso Umali said.
Former Bohol representative and now Governor Edgar Chatto said subsidizing the mass transit system would only do more harm than good in the long run.
"The government coughed out more than P70 billion for the past ten years to subsidize Metro Manila train passengers. I think that is more than enough," he said.
He said the amount could have been re-directed for countryside development or to augment the funding of local government units, especially in impoverished areas.
"We don't even have an MRT and LRT in Mindanao, yet we had to shoulder or carry the burden of the commuters in Metro Manila. I don't think that is fair," said Davao del Norte Gov. Rodolfo del Rosario.
In another development, deputy presidential spokeswoman Abigail Valte said they have invited militant groups to the meeting between President Aquino and leaders of all transport groups this week.
Valte last week said the President wants to hear and address the concerns of the transport sector on the rising oil prices and their petition for a provisional fare hike, before he leaves for the United States and Japan later this month.
She said the lead coordinator for the meeting will be the energy department.
She said government is not entirely helpless against the effects of oil price increases which is precisely the reason Aquino wanted to meet with the transport sector to discuss ways of mitigating the effects. – With Ashzel Hachero and Regina Bengco
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Chief News Editor: Sol Jose Vanzi
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