Lower the MRT fares

DIE HARD III

Herman Tiu Laurel

10/29/2012

The O&M (Operation and Maintenance) cost of the MRT is now shown to be actually lower than MRT fares now charged, based on data obtained from the RILES Network, Ibon Foundation, Agham and Bayan Muna research. Using the "farebox method," i.e. the proportion of the fare revenues to the total operational costs of the trains, they found the MRT O&M per passenger costing only P9.11 compared to fares ranging from P10 to P15 per passenger. Agham's Giovanni Tapang writes: "…an MRT customer is already paying P0.89 to P5.89 more than what is necessary to maintain the MRT." Each MRT passenger today is paying more than enough for the O&M of the MRT, plus an excess that likely goes to the so-called "subsidy." The subsidy clearly does not go to commuters as the Aquino III government claims; rather, it has gone and continues to flow to a train of financial oligarchs that have scammed the country.

Data from the RILES Network research are reliable. Among their members and leadership are former employees and workers of the LRT and MRT who have the inside info. RILES lead convenor Sammy Malunes is a former worker and union leader of the LRT. With Malunes, we launched the anti-MRT fare hike signature campaign last week. The RILES Network and its allied groups have solid information on the O&M of the MRT. Their research used the "farebox ratios" for the LRT1 and LRT 2 showing an average of 1.39 and 1.01, respectively, meaning their respective revenues cover already the total O&M cost of running the trains, and more. So where goes the "P7-billion" annual subsidy the DoTC claims it provides? Certainly, not to the commuters! The MRT and LRT fares can and should actually be lowered now, given the figures presented by the RILES Network.

If the DoTC will dispute the figures put forth by the RILES Network, it should bring out its own O&M data to prove its claims that the MRT is losing money in its operations and the government annual subsidy of around 7-billion really goes to the commuters whom they constantly blame and fault for the losses. The fact is the DoTC has never presented the complete picture and/or convincing data to explain the MRT losses, preferring to engage the public with propaganda and sowing intrigue — repetition of the unsubstantiated claim of "subsidy" to commuters and trying to distract by sowing discord between "spoiled" Metro Manila MRT commuters who take away from rural folks who neither benefit from riding the "subsidized" MRT-LRT and deprived of similar benefit. Now it's clear the millions of MRT commuters are not subsidized.

Where then is the P 7-billion annual subsidy — plus the P0.89 to P5.89 MRT commuters are paying over the O&M cost — where is all these going to? By simple reckoning, the financial burden taxpayers and MRT commuters are paying can be calculated by deducting the "farebox ratios" from the guaranteed P60/pax fare. The balance of P50 is the subsidy the people are paying. That burden started with Fidel V. Ramos, Sobrepenas, Ayala, Agustines and Campos groups that contracted the P60 MRT fare, onerous passenger quota, 15 percent profit guarantees; with advertising, concession and real estate revenues were meted out. The "investors" have since sold and resold four times over the projected MRT profits — to MRTC3FC, MPIC (Pangilinan), Goldman Sachs, Bobby Ongpin, back to government with profits made at each turn.

In the last reselling of the MRT to the government it got 80 percent MRT ownership, but without demanding or obtaining a single voting right on the board controlling the MRT operations. How in heaven's name does any buyer accept such an arrangement, owning 80 percent and having no say in any of the operations of the entity? That transaction involving Ongpin and the GMA administration using DBP and LBP funds seem to be an incontrovertible case of graft and plunder, but the Aquino III administration is no without it shady deal in the MRT case. The current DoTC chief is proposing now a complete buyback supposedly to "refinance and lower the cost of the 15percent profit guarantee," but still pressing the MRT (and LRT) fare hike and committed to re-privatizing the entire operation under the PPP (Public-Private Partnership) with government footing 50 percent of the investment.

Far from being subsidized, MRT commuters are hit with a triple whammy: paying overpriced MRT fares of which 30 percent goes to subsidizing a series of financial scammers, paying as taxpayers to the yearly P7-billion subsidy to the financial scammers, and getting blamed by government for a the subsidy that as commuters they never enjoyed. The public must put an end to the government and oligarchs' pressure to raise the MRT fares, MRT fares must be reduced to what is just and productive for all, and the serial financial scammers starting with FVR, Gloria Arroyo and oligarchs must all be investigated and prosecuted.

(Watch GNN's HTL show, GNN Channel 8, Saturdays, 8:15 to 9 p.m., 11:15 p.m. and Sunday 8 a.m., and over www.gnntv-asia.com. Tune to 1098AM radio Tuesday to Friday 5 to 6 p.m. or visit http://newkatipunan.blogspot.com)