School bus operators ready to up fares by 40pct

School bus operators will impose a 40 percent surcharge on its fares from the upcoming school year next month, unless the government reveals new fares for the service by then.
 
The Union of School Bus Associations passed the motion at its annual general meeting yesterday after the Land Transport Commission (Spad), which controls the prices, failed to review the fares.
 
The move also came after a cut in diesel subsidies in September, which the union’s new president Amali Munif Rahmat says have left bus operators struggling to stay afloat or even stopping services altogether.
 
“The last fares announced by (Spad’s predecessor) the Commercial Vehicles Licensing Board (CVLB) were in Aug 2009. The board revises it every three years or when there is a drastic increase in fuel prices.
 
“Now it has been five years without a fare revision despite several increases in fuel prices,” he told Malaysiakini when contacted yesterday.
 
Over the period, diesel prices had increased on three occasions, bringing the prices from RM1.70 per litre during the last fare revision to the current RM2.00 per litre.
 
Amali explained that school bus operators were already at a loss prior to the last fuel hike in September, and it increased the cost by 40 percent when the new prices came into effect.
 
Previously, a week after the last fuel hike, New Straits Times had reported that Spad was still reviewing the school bus fares and this is supposed to be completed by the end of the year.
 
Study proposal first

When asked what if Spad announces new fares that are below what the union demands, Amali said the union will study Spad’s proposal first.
 
“Normally if they give a fare that is below what we demand, they will give another incentive…for the time being if they give a new rate, we will follow the new rate but we will see if it is acceptable first and may renegotiate with Spad,” he said.
 
Further complicating matters, he said, is the late implementation of a government-backed school bus replacement scheme for buses over 25 years old.
 
He said as part of the scheme announced in the 2013 Budget, school buses over 30 years old would not have their license renewed in return for a RM10,000 rebate and a 2 percent interest loan.
 
However, he said forms the loan application were only issued in May and began to be processed in November.
 
Amali says this is too late, and close to 1,000 buses would not be available or would have to be operated illegally for the new school year despite passing Puspakom’s roadworthiness inspections.
 
In addition, he said, he complained that loan’s terms were hard to meet and was too small.
 
“The scheme only covers a loan up to RM150,000. We can only buy a van with that, but 90 percent of the buses (being retired) are mini buses and medium-sized buses,” he said.