RM400mil fund to keep bus firms running

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RM400mil fund to keep bus firms running

Postby admin » Tue Dec 20, 2011 1:25 am

PUTRAJAYA: A RM400mil fund has been approved by the Government to help stage bus operators which are finding it difficult to continue with their services in various states.

In announcing the fund yesterday, Prime Minister Datuk Seri Najib Tun Razak said it would be managed by the Land Public Transport Commission (SPAD), which plans to disburse RM100mil in the first quarter of next year.

“For the first phase, this fund will be used to help troubled stage bus companies in Selangor, followed by those in other states such as Negri Sembilan and Pahang.

“This fund acts as an interim measure which can hopefully maintain the stage bus services for the good of the people involved,” he said in a statement here yesterday.

Najib said the Government, through SPAD, would also start negotiating with stage bus companies on the best method to resolve the problems.

“This is to find a long-term solution to enable operators to continue their services based on both their interests and those of the passengers,” he said, adding that methods to be discussed included a fund to be approved as a “per kilometre” subsidy.

Several stage bus companies, especially those in Selangor, Negri Sembilan and Pahang, are currently facing problems in maintaining their operations due to financial constraints.

The Government, added Najib, was well aware of the impact that any halt in bus services would have on public transport users.

“In relation to this, SPAD will remain committed to finding comprehensive solutions to the existing problems,” he said, adding that this was in line with the Government's “People First” principle.

In welcoming the fund, SPAD chairman Tan Sri Syed Hamid Albar said the move was expected to benefit 450,000 stage bus users in the country.

He said the aid has come as a short-term measure following a report and proposal submitted by SPAD to the Government after a series of meeting with bus operators.

Operators, he said, had run into trouble not only due to the escalating costs but a reduction in demand for their services as people now preferred to drive their own vehicles.

Read the full article:
http://thestar.com.my/news/story.asp?fi ... sec=nation

admin
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Bus companies want details of new deal offered by Govt

Postby admin » Tue Dec 20, 2011 1:26 am

PETALING JAYA: Bus operators will adopt a “wait-and-see” stand before deciding if the announcement of the RM400mil helpline for stage bus services is good news.

“We don't know yet how the funds are going to be disbursed, to whom will this be made available and for how long. We need to find out the details first,” said Pan-Malaysian Bus Operators Association president Datuk Mohamad Ashfar Ali.

He said bus operators had been invited to a meeting with the Land Public Transport Commission (SPAD) today, believed to be for a discussion on the announcement.

“The Government has realised the seriousness of this issue and finally decided to act on it. Let's see how they intend to execute this,” he said.

Konsortium Transnasional Bhd (KTB) executive director Tengku Hasmadi Tengku Hashim said he hoped the Government could come up with a proper and acceptable mechanism to make full use of the fund.

KTB, which runs the Cityliner stage buses, recently halted operations on several non-profitable routes, particularly in Selangor.

“We have been waiting for the Government to step in and solve this problem and we thank them for finally doing so.

“However, we also want to see what sort of mechanism they are proposing first before commenting further,” said Tengku Hasmadi.

In Kuantan, Mentri Besar Datuk Seri Adnan Yaakob described the fund as a “timely move”, adding however, that the state government's plan for a cross-subsidy package for bus operators was still on.

“But we need to iron out the details,” he said.

The cross-subsidy package proposal involved an offer of a property development project to the companies, with the returns used to compensate for losses incurred in operating stage bus services.

Kedah Mentri Besar Datuk Seri Azizan Abdul Razak said the aid would ensure the continuity of public transport services in the rural areas.

“My only hope is that the bus operators will use the aid to better manage their operations in future,” he said, adding that the rural folks especially depended on public transport.

In Seremban, state Public Transport, New Villages and Local Government Committee chairman Datuk Siow Chen Pin said it would be able to provide greater bus coverage, especially in the rural areas, following the announcement.

He said this would also allow the state authorities to provide assistance to bus operators.

“We need to look at the specifics before we can say anything conclusive,” he said.

Read the full article:
http://thestar.com.my/news/story.asp?fi ... sec=nation

admin
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Posts: 3543
Joined: Thu Jan 01, 1970 12:00 am
Location: Kuala Lumpur


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