Business World

LTFRB command and control, and passengers inconvenie­nce

- BIENVENIDO S. OPLAS, JR. is president of Minimal Government Thinkers, a member institute of Economic Freedom Network (EFN) Asia. minimalgov­ernment @gmail.com.

MY CUP OF LIBERTY

Here’s a mixture of news for traffic-wary motorists and passengers in Metro Manila and other big cities in the country.

The good news: (1) more big infrastruc­ture projects like skyway extension, M.Manila subway and Makati subway are either near completion or about to start constructi­on, and (2) regular passengers of transport network vehicle service (TNVS) will soon experience shorter waiting time as the Land Transporta­tion Franchisin­g and Regulatory Board (LTFRB) has increased the number of accredited cars by 10,000 last August 24.

The bad news: (3) many roads leading to and after exiting the skyway will remain congested because of the big volume of vehicles, (4) the 10,000 new TNVS cars to be accredited by LTFRB are not enough to significan­tly bring down waiting time and fares, and (5) many accredited but inactive, suspended, or booted out TNVS drivers and their cars are still not delisted in the LTFRB “masterlist” and hence, cannot be replaced by new ones who can help expand the number of available ridesharin­g vehicles.

The LTFRB is ground zero of these endless problems not only with TNVS but also other types of public transporta­tion in the country. Here are the reasons.

One, franchise control. Putting a small and fixed cap on the number of accredited TNVS, UV express vehicles, buses, taxis, resulting in huge numbers of people unable to get fast and safe rides. Queuing and waiting too long, or standing in cramped, heavily-loaded buses and jeepneys, force many people to drive their cars, which further worsens traffic congestion.

BIENVENIDO S. OPLAS, JR.

LTFRB should be checked by Congress or the Office of the President. Providing safe and convenient transporta­tion to wary passengers is not a crime that should be penalized with endless command and control culture, stiff fines and penalties, even confiscati­on of private property like a car, van or bus.

In the table below, when there was still Grab-Uber competitio­n, total number of cars and drivers was 43,000. After the merger, it went down to 35,000 because LTFRB did not and would not accredit 8,000 former Uber drivers and cars to be absorbed by Grab. The immediate result is longer waiting time for passengers and higher fares as additional disincenti­ves for limited drivers to go into heavy traffic or frequently flooded areas.

Two, fare control. Fare-setting is not a function of rise or fall of oil prices, or degree of competitio­n per route per hour, but a function of the willingnes­s of the Board’s bureaucrat­s to meet and decide on fares that hardly change for months or years.

Three, route control. Disallowin­g buses, UV express, jeepneys, etc. to serve routes that experience high passenger volume (there is a barangay or city or provincial fiesta, etc.).

Four, very bureaucrat­ic and costly procedures to get LTFRB accreditat­ion. For instance, if one would apply as a new TNVS driver/ partner, applicant must provide (a) proof of existence/various IDs, (b) proof of sufficienc­y of garage, (c) TCT or tax declaratio­n or contract of lease/Authority to use with TCT of lessor, (d) LGU Zoning Certificat­e for garage, (e) proof of financial

capability, latest income tax return, proof of bank deposit of P50,000, (f ) DTI business registrati­on, (g) BIR certificat­e of registrati­on, (h) Proof of publicatio­n, (i) affidavit by the publisher, copies of publicatio­n, etc.

Five, rising regulation­s and requiremen­ts. Which means rising cost of operating public transporta­tion. Mandatory receipts in taxi, GPS for buses and taxi, unbundling and detailed breakdown of fares by TNVS. Soon mandatory CCTV inside buses and TNVS, other wild requiremen­ts.

LTFRB has become a wildcannon bureaucrac­y that creates more inconvenie­nce to passengers instead of making their travels more convenient, more safe.

LTFRB should be checked by Congress or the Office of the President. Providing safe and convenient transporta­tion to wary passengers is not a crime that should be penalized with endless command and control culture, stiff fines and penalties, even confiscati­on of private property like a car, van or bus.

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