Train and bus fares should be compatible
As the latest fuel price increase came into effect on Sunday, the Railways Department called for an immediate and substantial increase in train fares to offset massive losses which would have a detrimental impact on the national economy.
Railways General Manager Dr. T. Lalithasiri Gunaruwan said the department had been running at a staggering loss even before the latest price increase. “This would make an already bad situation worse,” he said.
Petroleum Minister A. H. M. Fowzie said the CPC had increased the price of a litre of diesel to Rs 110 and petrol to Rs 157. The LIOC (Lanka Indian Oil Company) had matched the CPC prices.
In an interview with The Island, Gunaruwan said before the latest increase, the Treasury had pumped Rs 7.5 billion annually to meet the deficit between the income and expenditure in relation to the operating cost. He estimated the railway income at Rs. 2.5 billion and expenditure at Rs. 10 billion. The shortfall was met by taxpayers, he said. “People who haven’t boarded a train in their life time are among those who absorb the railway loss,” he said.
The last train fare increase had been in June, 2005, he said, asserting the failure on the part of the Treasury to revise fares immediately would be disastrous. He emphasised train and bus fares should reflect the actual cost in running the public transport network. Fielding questions, he said train and bus fares should be compatible and failure to make that happen would be catastrophic. “I have repeatedly urged the decision making authority to raise train fares,” he said, expressing the belief the fare structure should be increased at least three-fold. This was the reality, he said, adding the financial crisis had denied the Railways from taking any meaningful measures to improve quality of the services or introduce any additional facility without being a burden to the Treasury.
The Rs 10 billion expenditure wouldn’t cover funds needed for development work, he said. In fact, Railways couldn’t engage in tangible development work without obtaining funds from the Treasury, he said.
As Railways had been prevented from increasing fares since June 2005, the difference between train and bus fare strictures had been widened sharply, he said. “Let me explain the absurdity of the situation. The average cost of taking a commuter for a distance of one kilometre is approximately Rs. 2 whereas the actual revenue is 50 cents,” he said. But monthly season ticket holders were charged even less than 50 cents per kilometre. In the case of ordinary season ticket holders, their cost would be about one third of that amount while public servants would spent just 5 per cent. The latest diesel increase would make the situation worse, he said, unless the government took into consideration the entire range of issues and implement what he called a realistic fare structure. Railway employees, too, had been given relief, he said, adding the government would closely review the situation before taking action.
By Shamindra Ferdinando
Source: The Island
Tags: bad situation, bus fares, expenditure, fare structure, fuel price, income, massive losses, meaningful measures, national economy, public transport, railways, staggering loss, train fare
